1.             Program for Responding to Requests for Reimbursements of Development-Related Fees

 

PROGRAMME VISANT LES DEMANDES DE REMBOURSEMENT DES DROITS RELIÉS AU DOMAINE DE L’AMÉNAGEMENT

 

 

Committee recommendationS as amended

 

That Council approve:

 

1.                  The establishment of a Program and eligibility criteria for responding to requests for reimbursements of development-related application fees for construction projects, as outlined in Document 1;

 

2.                  The reimbursement rate for eligible development-related application fees of eligible construction projects, as outlined in Document 1, be set at 50 per cent of these fees;

 

3.                  The establishment of a relief fund of $1,200,000, based on an assessment of the potential value of annual requests, through the 2010 budget process, to offset the reimbursement of the eligible development-related application fees as outlined in Document 1;

 

4.                  That the General Manager, Planning and Growth Management be delegated the authority to process the reimbursements of eligible development-related fees in accordance with the Program and its criteria set out in Document 1, and that By‑law No. 2009-231, the Delegation of Authority By-law, be amended accordingly;

 

5.                  Subject to the approval of Recommendation 4, that the General Manager, Planning and Growth Management prepare and present a report annually to Committee and Council listing all the requests submitted the previous year, the construction projects and associated development-related fees that were eligible, the reimbursements processed in the preceding year, and a rationale for all decisions to qualify or disqualify the requests and that this reporting requirement for the director’s delegated authority be included in By-law No. 2009-231;

 

6.                  That the General Manager, Planning and Growth Management undertake an evaluation of the program in three years’ time and report back on the findings and recommendations for changes, if any, by end of Q4 2013;

 

 

7.         That the City of Ottawa seek an amendment to the Building Code Act to allow for the reimbursement of building permit fees under the program proposed by City Council such that the cost of the reimbursement is borne by the fee base; and

 

Should authority be granted to the City of Ottawa with respect to building permit fees, that a similar approach be allowed whereby planning application fees will be adjusted to recover the cost of the reimbursement program for planning application fees.

 

 

RecommandationS modifÉes DU Comité

 

Que Conseilapprouve ce qui suit :

 

1.                  La création d’un programme et de critères d’admissibilité, en réponse aux demandes de remboursement des droits de demande d’aménagement, visant les projets de construction, tel que décrit dans le Document 1;

 

2.                  Le taux de remboursement des droits admissibles de demande liés aux aménagements, visant les projets de construction admissibles, tel que décrit dans le Document 1, établi à 50 pour cent du montant de ces droits;

 

3.                  La création d’un fonds d’aide de 1 200 000 $, fondé sur une évaluation de la valeur potentielle des demandes annuelles, dans le cadre du processus budgétaire de 2010, afin de compenser le remboursement des droits admissibles de demande liés aux aménagements, tel que décrit dans le Document 1;

 

4.         Que le directeur général, Urbanisme et Gestion de la croissance se voient déléguer le pouvoir d’effectuer le remboursement des droits admissibles de demande liés aux aménagements, conformément au programme et à ses critères, décrits dans le Document 1, et que le Règlement 2009-231, Règlement sur la délégation de pouvoirs, soit modifié en conséquence;

 

5.                  Sous réserve de l’approbation de la recommandation 4, que le directeur général, Urbanisme et Gestion de la croissance préparent et présentent annuellement un rapport au Comité et au Conseil, énumérant toutes les demandes soumises l’année précédente, les projets de construction et les droits liés aux aménagements déclarés admissibles, les remboursements effectués l’année précédente, et contenant un résumé de toutes les décisions d’accorder ou non les demandes; que cette exigence de reddition de comptes au pouvoir délégué du directeur soit intégrée dans le Règlement 2009-231;

 

6.         Que le général, Urbanisme et Gestion de la croissance effectuent, d’ici à trois ans, une évaluation du programme et rendent compte de leurs conclusions et de leurs recommandations de modification, le cas échéant, d’ici à la fin du quatrième trimestre de 2013;

 

7.         Que la Ville d’Ottawa cherche à obtenir une modification de la Loi sur le code du bâtiment afin de permettre le remboursement des droits de permis de construction en vertu du programme proposé par le Conseil municipal de manière à ce que les coûts du remboursement soient assumés par la tarification de base;

 

Si la Ville obtient le pouvoir en ce qui a trait aux droits de permis de construction, qu’une approche similaire soit adoptée selon laquelle les droits de demande d’aménagement seront ajustés en vue de récupérer les coûts du programme de remboursement pour les droits de demande d’aménagement.

 

 

 

 

 

 

 

Documentation

 

1.      Deputy City Manager's report, Infrastructure Services and Community Sustainability, dated 16 October 2009 (ACS2008-ICS-PGM-0172).

 

 

Report to/Rapport au :

 

Planning and Environment Committee

Comité de l'urbanisme et de l'environnement

 

and Council / et au Conseil

 

16 October 2009 / le 16 octobre 2009

 

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice municipale adjointe,

Infrastructure Services and Community Sustainability/Services d’infrastructure et Viabilité des collectivités 

 

Contact Person/Personne ressource : Arlene Grégoire, Chief Building Official/Chef du service du bâtiment, Planning and Growth Management/Urbanisme et gestion de la croissance

(613) 580-2424 x 41425, Arlene.Gregoire@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-ICS-PGM-0172

 

 

SUBJECT:

Program for Responding to Requests for Reimbursements of Development-Related Fees

 

 

OBJET :

PROGRAMME VISANT LES DEMANDES DE REMBOURSEMENT DES DROITS RELIÉS AU DOMAINE DE L’AMÉNAGEMENT

 

 

REPORT RECOMMENDATIONS

 

That the Planning and Environment Committee recommend that Council approve:

 

1.                  The establishment of a Program and eligibility criteria for responding to requests for reimbursements of development-related application fees for construction projects, as outlined in Document 1;

 

2.                  The reimbursement rate for eligible development-related application fees of eligible construction projects, as outlined in Document 1, be set at 50 per cent of these fees;

 

3.                  The establishment of a relief fund of $1,200,000, based on an assessment of the potential value of annual requests, through the 2010 budget process, to offset the reimbursement of the eligible development-related application fees as outlined in Document 1;

 

4.                  That the General Manager, Planning and Growth Management be delegated the authority to process the reimbursements of eligible development-related fees in accordance with the Program and its criteria set out in Document 1, and that By‑law No. 2009-231, the Delegation of Authority By-law, be amended accordingly;

 

5.                  Subject to the approval of Recommendation 4, that the General Manager, Planning and Growth Management prepare and present a report annually to Committee and Council listing all the requests submitted the previous year, the construction projects and associated development-related fees that were eligible, the reimbursements processed in the preceding year, and a rationale for all decisions to qualify or disqualify the requests and that this reporting requirement for the director’s delegated authority be included in By-law No. 2009-231; and,

 

6.                  That the General Manager, Planning and Growth Management undertake an evaluation of the program in three years’ time and report back on the findings and recommendations for changes, if any, by end of Q4 2013.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité de l’urbanisme et de l’environnement recommande au Conseil d’approuver ce qui suit :

 

1.                  La création d’un programme et de critères d’admissibilité, en réponse aux demandes de remboursement des droits de demande d’aménagement, visant les projets de construction, tel que décrit dans le Document 1;

 

2.                  Le taux de remboursement des droits admissibles de demande liés aux aménagements, visant les projets de construction admissibles, tel que décrit dans le Document 1, établi à 50 pour cent du montant de ces droits;

 

3.                  La création d’un fonds d’aide de 1 200 000 $, fondé sur une évaluation de la valeur potentielle des demandes annuelles, dans le cadre du processus budgétaire de 2010, afin de compenser le remboursement des droits admissibles de demande liés aux aménagements, tel que décrit dans le Document 1;

 

4.         Que le directeur général, Urbanisme et Gestion de la croissance se voient déléguer le pouvoir d’effectuer le remboursement des droits admissibles de demande liés aux aménagements, conformément au programme et à ses critères, décrits dans le Document 1, et que le Règlement 2009-231, Règlement sur la délégation de pouvoirs, soit modifié en conséquence;

 

5.         Sous réserve de l’approbation de la recommandation 4, que le directeur général, Urbanisme et Gestion de la croissance préparent et présentent annuellement un rapport au Comité et au Conseil, énumérant toutes les demandes soumises l’année précédente, les projets de construction et les droits liés aux aménagements déclarés admissibles, les remboursements effectués l’année précédente, et contenant un résumé de toutes les décisions d’accorder ou non les demandes; que cette exigence de reddition de comptes au pouvoir délégué du directeur soit intégrée dans le Règlement 2009-231;

 

 

 

 

 

6.         Que le général, Urbanisme et Gestion de la croissance effectuent, d’ici à trois ans, une évaluation du programme et rendent compte de leurs conclusions et de leurs recommandations de modification, le cas échéant, d’ici à la fin du quatrième trimestre de 2013.

 

 

EXECUTIVE SUMMARY

 

Assumptions and Analysis:

 

Most charities and non-profit organizations are subject to taxes, including property taxes.  The City has established programs to provide partial refunds on tax and other regulatory levies, including development charge exemptions and the property tax rebate program for charitable organizations.  In this context, this report proposes to establish a Program and eligibility criteria for responding to requests by charities and non-profit organizations, including requests by the Ottawa hospitals, for the reimbursement of development-related fees. 

 

The recommended Program constitutes a reasonable approach for providing assistance in a manner that is transparent and consistent and that ensures funding is available on an annual basis to offset development-related fees for eligible construction projects.  For the Ottawa hospitals, the proposed Program will provide assistance to address the projects for which building permits have been applied for commencing April 1, 2009. 

 

To ensure consistency with current City policies, such as the Property Tax Rebate Program for charitable organizations and the development charge exemption for non-profit care facilities, and legislation, the proposed Program provides for the reimbursement of eligible development-related fees that have met the criteria set out in Document 1.  By specifying the potential recipients of the grant funding, the conditions for qualifying for the funding, the specific fees, and the reimbursement rate of 50 per cent, Council will ensure tax-generated funding is allocated to projects that are beneficial to the community.  Accordingly, and based on an analysis of pending requests and an anticipated submission of requests from the Ottawa hospitals, it is proposed that a relief fund of $1,200,000 be established through the annual budget deliberation process to provide a 50 per cent reimbursement for eligible development-related fees of eligible construction projects undertaken by charitable and non-profit organizations.

 

In accordance with the Delegation By-law 2009-231, the General Manager, Planning and Growth Management will prepare and present a report annually listing all the requests processed, the eligible projects and fees, as well as those projects and fees disqualified from the Program, as an extension of the delegated authority reporting process. 

 

Legal/Risk Management Implications:

 

There are no legal/risk management impediments to approving the recommendations in this report.  Section 107 of the Municipal Act, 2001 provides that the City may make grants on such terms as Council considers appropriate for any purpose Council considers to be in the interests of the municipality.

 

Financial Implications:

 

The funding for this relief will be included in the 2010 draft estimates.

 

Public Consultation/Input:

 

The Ottawa Academy of Hospital Executives has been consulted and the Academy provided an estimated value of proposed requests for reimbursement of fees paid between April 1, 2009 and December 31, 2010 to facilitate the analysis of the impact of the proposed program.  In addition, a copy of this report was forwarded to the Academy for review and information.

 

RÉSUMÉ

 

Hypothèses et analyse :

 

La plupart des organismes de bienfaisance ou sans but lucratif sont soumis à des impôts, y compris à l’impôt foncier. La Ville a créé des programmes permettant un remboursement partiel de ces taxes et d’autres prélèvements réglementaires, notamment des dispenses de redevances d'aménagement et le programme d’allégement de l’impôt foncier, destinés aux organismes de bienfaisance. C’est dans ce contexte que le présent rapport propose de créer un programme et des critères d’admissibilité visant les demandes d’organismes de bienfaisance ou sans but lucratif, y compris celles provenant des hôpitaux d’Ottawa, pour le remboursement des droits de demande d’aménagement. 

 

Le programme recommandé représente une approche raisonnable d’aide, offerte d’une manière transparente et cohérente, qui garantit que des fonds seront disponibles annuellement pour compenser les droits d’aménagement visant des projets de construction admissibles. En ce qui concerne les hôpitaux d’Ottawa, ce programme permettra d’aider à la réalisation de projets pour lesquels des permis de construire ont été demandés pour des travaux démarrant le 1er avril 2009. 

 

Afin d’assurer sa conformité aux politiques actuelles de la Ville, comme le programme d’allégement de l’impôt foncier pour les organismes de bienfaisance et la dispense de redevances d'aménagement pour les installations de soins sans but lucratif, et à la législation, le programme proposé prévoit le remboursement des droits admissibles d’aménagement ayant satisfait aux critères décrits dans le Document 1. En précisant les candidats éventuels à cette subvention, les conditions d’admissibilité, les droits spécifiques et le taux de remboursement fixé à 50 pour cent, le Conseil s’assurera qu’un financement généré par les taxes est attribué aux projets dont profite l’ensemble des résidents. Par conséquent, compte tenu d’une analyse des demandes en attente et d’une arrivée prévue de demandes provenant des hôpitaux d’Ottawa, il est proposé de créer un fonds d’aide de 1 200 000 $, dans le cadre des délibérations budgétaires annuelles, afin d’offrir un remboursement de 50 pour cent des droits admissibles d’aménagement visant les projets de construction admissibles entrepris par des organismes de bienfaisance ou sans but lucratif.

 

Conformément au Règlement 2009-sur la délégation de pouvoirs, le directeur général, Urbanisme et Gestion de la croissance prépareront et présenteront annuellement un rapport énumérant toutes les demandes traitées, les projets et les droits admissibles ainsi que les projets et les droits refusés en vertu du programme, dans le cadre du processus de reddition de comptes du pouvoir délégué. 

 

Répercussions juridiques ou liées à la gestion des risques :

 

Il n’existe aucun obstacle juridique ou lié à la gestion des risques en ce qui concerne l’approbation des recommandations du présent rapport. L’article 107 de la Loi de 2001 sur les municipalités prévoit que la Ville peut accorder des subventions selon des termes que le Conseil considère appropriés pour tout objet qu’il estime dans l’intérêt de la municipalité.

 

Répercussions financières :

 

Le financement de ce fonds d’aide sera inclus dans les estimations provisoires de 2010.

 

Consultation publique / commentaires :

 

L’Ottawa Academy of Hospital Executives a été consultée et la direction a fourni un montant estimé des demandes proposées de remboursement des droits payés entre le 1er avril 2009 et le 31 décembre 2010, afin de faciliter l’analyse des répercussions du programme proposé. De plus, une copie du présent rapport a été transmise à la direction, aux fins d’examen et d’information.

 

 

BACKGROUND

 

Fee Relief Program for the Ottawa Hospitals

 

Building Permit and Planning Application Fees

 

On January 23, 2002, City Council considered a report entitled “Ottawa Academy of Hospital Executives, Capital Funding Support” (ACS2001-CRS-FIN-004) wherein the Ottawa Academy of Hospital Executives requested funding to assist with their infrastructure renewal program.  The request could not be accommodated with the City’s financial resources in 2002, however, Council did confirm its commitment to the quality of life of the community by partnering with the Ottawa Academy of Hospitals to tackle the financial challenge of raising $232 million locally for the projects, and directed staff to reimburse certain building permit and planning application fees, on a case by case basis.  The program benefited the Ottawa hospitals in two ways:

 

·                   From the City, 100 per cent reimbursement of fees, and

·                  From the Province, approximately 70 per cent reimbursement of the fees when claimed as a construction cost.

 

This approach allowed the hospitals to leverage the fee amounts paid to the City to maximize the capital funding available from the Province within the 10-year master plan approved by the Province. 

 

Originally, surplus building permit revenues were used to reimburse the building permit fees.  However, changes to the Building Code Act in 2005 required the reimbursement of building permit fees to be offset by other sources, other than permit revenues.  As a result of this change, the City-Wide Capital Reserve Fund was identified as a funding source for reimbursing building permit fees for the hospitals commencing July 1, 2005.

 

Development Charges

 

The Development Charge By-law 2009-216, approved on June 24, 2009, established fee relief provisions for non-profit health care facilities.  Specifically, subsection 7(p) provided an exemption from development charges to:

 

A non-profit health care facility only with respect to the capital cost that is not reimbursed or subsidized by either the Provincial or Federal Governments.

 

Other Fee Relief Programs for Charitable and Non-Profit Organizations

 

Refund Programs for Affordable Housing

 

In response to the legislative changes to the Building Code Act, Council in 2006 approved one-time funding from the Social Housing Reserve Fund to provide funding to offset building permit fees for qualifying construction projects not funded through Action Ottawa (ACS2006-CPS-HOU-0004), although larger housing projects and requests from other charities and non-profit organizations’ continued to be dealt with by Council on a case-by-case basis. 

 

Property Tax Rebate Program

 

Most charities and non-profit organizations are subject to property taxes.  However, provincial legislation requires municipalities provide eligible charities with rebates of at least 40 per cent of their property taxes (Municipal Act, 2001, S. 361).  Accordingly, Council provides a 40 per cent rebate for eligible charities, provided the charity has a valid registration number issued by the Canada Revenue Agency, and occupies a property that is in a commercial or industrial tax class.  In reference to hospitals, the City has enacted by-laws under Section 323 of the Municipal Act, 2001 and Ontario Regulation 384/98, as amended, to levy public hospitals or provincial mental health facilities, correctional institutions, universities and colleges, and provincial education institutions a $75.00 annual tax per person/bed/place (ACS2009-CMR-FIN-0031). 

 

Recent Directions from Committee and Council

 

On October 7, 2008 a report requesting the reimbursement of development-related fees for 2006 and 2007 infrastructure projects, totalling $755,728.59, paid by the Ottawa Hospital, was submitted to the Corporate Services and Economic Development Committee.  The report identified that the funding in the City-wide Capital Reserve was insufficient to offset the request for reimbursement of the building permit fees and that approval to reimburse the fees would result in an additional budget pressure in the subsequent fiscal year.   

 

As the intent of the original policy was to avoid an impact on taxation, while providing assistance to the hospital sector, the request was deferred and the City Manager was directed to provide a review of the policy of reimbursing building and planning fees to hospitals as a method of funding their capital projects. 

 

On March 11, 2009, Council considered a report entitled “Capital Funding Support for Ottawa Hospitals – Review of Policy of Reimbursing Building and Planning Fees” (ACS2009-CMR-FIN-0009) and approved the following directions:

 

1.      That Council revise its policy of reimbursing building permit, planning application and cash-in-lieu of parkland fees paid to the City by hospitals for capital projects to include a sunset clause stating that in order to apply for the reimbursement, the building permit, planning application and cash-in-lieu of parkland fees must have been paid prior to March 31, 2009; and

  

2.   That a group be formed, compromised of City staff, Provincial and City elected officials and hospital officials, to examine and propose other options to assist the hospitals towards their on-going capital needs and to report the results back to the Corporate Services and Economic Development Committee by the end of the third quarter.

 

As such, the hospitals have been without a program for reimbursements for development-related application fees paid since March 31, 2009. 

 

Subsequent to this Council direction regarding the Ottawa hospitals, Council provided further directions to staff regarding requests from other charitable and not-for-profit organizations, as follows:

 

·        June 24, 2009 - Council directed staff

“… to develop a policy and process for responding to these requests, including the criteria for a request to qualify, upset limit for refunds and source of funding, and to report back to Committee in September 2009.” (Corporate Services and Economic Development Committee Report 43, “Beechwood Cemetery - Reimbursement of Fees”, ACS2009-CMR-CSE-0006)

 

·        July 8, 2009 - Council approved the reimbursement of development related fees for the National Capital Region YMCA-YWCA, “subject to any adjustments required as a result of the adoption of a Council policy on development fees and charges adjustments, to be considered by Council in September 2009.” (Corporate Services and Economic Development Committee Report 45, “Building Permit, Development and Other Construction-Related Fees”)

 

·        September 9, 2009 - Council approved the reimbursement of fees to the Independent Living Resource Centre of Ottawa upon issuance of the final occupancy permit, and directed staff to hold any other future requests pending the adoption of the policy and process (Audit, Budget and Finance Committee Report 1, “Independent Living Resource Centre Of Ottawa – Exemption From Municipal Building Permit Fees”, ACS2009-CMR-CSE-0011).

 

The discussions surrounding these different requests for reimbursement of fees has given rise to this report and proposed Program.  The proposed Program will provide Council the ability to support qualified charitable and non-profit organizations undertaking development projects by way of a consistent approach.

 

DISCUSSION

 

Recommendation 1

 

The proposed Program and eligibility criteria presented in Document 1 will provide relief for the Ottawa hospitals’ infrastructure projects for fees paid between April 1, 2009 and December 31, 2010.  The Program will also provide for treatment of those requests for financial assistance from other non-profit health care facilities, charities and non-profit organizations in the form of the reimbursement of eligible development-related application fees for qualified construction projects. 

 

Highlights of the Program and eligibility criteria, as outlined in Document 1, are as follows:

 

·          The Program identifies the eligible fees paid in respect to eligible construction projects, as set out in Document 1, to ensure the financial assistance will be directed to charities and non-profit organizations undertaking projects that will provide the majority of its services locally to Ottawa residents. 

 

·          Reimbursement of the fees will benefit only eligible types of development projects, namely those that mirror selected classifications of Municipal Capital Facilities (Document 1, Schedule A).  This measure will ensure that assistance is directed to charities and non-profit organizations undertaking projects that will provide the majority of its services locally to Ottawa residents.  Given Ottawa is home to many charities and non-profit organizations with a national scope, this limitation will ensure the fee relief is directed to “local” projects, in view of the fact that local tax dollars will be used to offset the fee relief.   

 

·          The reimbursement rate for the eligible development-related fees will be 50 per cent of the fees paid.  This will provide certainty for those submitting a request and will limit the draw on the relief fund.

 

·          The reimbursement rate will be limited to only that portion of the development-related application fees for qualifying construction projects that has not been reimbursed or subsidized by either the Provincial or Federal Governments, or any other municipal program.

 

·          The development-related application fees are:  building (construction and demolition) permit, site plan application, Zoning By-law amendment, demolition control and cash-in-lieu of parking.  These fees have historically been reimbursed.

 

·          Development charges will not be considered as part of this Program as exemptions of development charges are already provided for in the Development Charge By-law.

 

·          The fees that will not be considered are:  conditional building permit, administrative surcharges levied where construction has commenced without a building permit, Building Code enforcement-related penalties, Official Plan amendment, notification of development application signage required by statute, engineering/infrastructure approval fees, sewer and water connections and reconnections, road cut permits, cash-in-lieu of parkland, the appraisal for the assessment of the cash-in-lieu of parkland levies, conservation authority, private roadway naming, Committee of Adjustment (namely, consent for severance and minor variances) and encroachments.

 

·          While cash-in-lieu of parkland fees were reimbursed previously, pursuant to By-law 2009-95, these levies can no longer be waived or reimbursed.

 

·          Charities and non-profit organizations requesting reimbursements will be required to acknowledge the City’s contribution to their construction project in some manner, such as signage or a visible recognition on the organization’s website.

 

·          The requests/applications will only be considered once all fees are paid in full and where a building or demolition permit is issued, only upon the issuance of the final occupancy permit, except for non-profit health care facilities in view of the funding constraints and compliance rating of this group.

 

·          Requests for reimbursement must be submitted within 12 months of the final occupancy permit being issued, and no later than 36 months after the building permit has been issued.  

 

In addition, the Program outlined in Document 1 will provide a baseline for discussions with the Ottawa Academy of Hospital Executives following up on the second part of the directions provided at the time Council considered the report entitled “Capital Funding Support for Ottawa Hospitals – Review of Policy of Reimbursing Building and Planning Fees” on March 11, 2009, as noted above under BACKGROUND.

 

Rationale for Ineligible Fees

 

Most of these fees are fees for service and cover actual third party costs incurred by the City in relation to the development.  Reimbursing these fees would result in taxpayers subsidizing the additional costs that are associated to a specific and individual applicant.  This would run counter to the approach of assigning where possible the costs to those who occasion the cost to be incurred.  Some fees offset activities that require a significant resource allocation, such as amendments to the Official Plan, which involve the greater community. 

 

Fees or charges associated with the enforcement of a by-law and legislation should not be refunded.  Thus, the administrative surcharge levied where construction has commenced without a building permit contrary to the Building Code Act and Building Code enforcement-related penalties should not be considered for reimbursement. 

 

Encroachment fees are levied to support effective traffic management by discouraging any prolonged occupation of the street for the purpose of storing construction materials and/or equipment, staging for the construction or for parking of vehicles.  These encroachments disrupt traffic, which inconvenience residents and businesses and increase transportation costs.  A waiver of these fees becomes a disincentive to the constructor to minimize the disruptions to traffic and inconveniences to the surrounding community and thus these are not usually reimbursed.  

 

Recommendations 2 and 3

 

The Program is structured to provide predictable assistance to the charitable and non-profit organizations.  Planning and Growth Management has been directed by Council to move towards full cost recovery for processing planning applications to avoid revenue shortfalls, and this process is underway.  Reliance on the City-Wide Capital Reserve on a case-by-case basis has resulted in budget pressures. Thus, the establishment of a relief fund for fee reimbursements is recommended to ensure the program does not create an unforeseen tax pressure.

 

In the first year of the Program, it is expected that the relief fund will be strained as there is a backlog of requests and the Program will only be launched in 2010.  Based on the information provided by the Ottawa hospitals and the backlog values that have been identified, a total estimated fee relief request of approximately $2.4 million would be submitted for reimbursement in the first year of the Program, which would result in approximately $1.2 million being distributed, thereby exhausting the fund.  It is likely that 2011 will produce a similar value of requests given the infrastructure stimulus funding that is underway.

 

Document 2 to this report outlines requests submitted to date as well as projected requests from the Ottawa hospitals. Based on the above information and the analysis outlined in Document 2 and subject to Council’s approval of the 2010 budget, it is proposed that a relief fund of $1.2 million be established in the 2010 operating budget to offset the reimbursement of eligible development-related application fees for eligible construction projects undertaken and paid by charitable and non-profit organizations, including the Ottawa hospitals.

 

Admittedly, it is not possible to provide a precise estimate or projection of the value of such reimbursements in advance due to a variety of factors, including:

 

 

 

Nevertheless, the benefit of this approach and the establishment of the relief fund is that Council-directed refunds will no longer present an unforeseen budget pressure to the operating budget of Planning and Growth Management department and the City-Wide Capital Reserve when such motions or reports are approved.  The fund amount will be reviewed on a yearly basis as part of the budget deliberations, and can be increased or decreased at Council’s discretion after a review of the use of the fund.  If the relief fund is not exhausted in a given year, the remaining monies will be applied to offset deficits and then the tax stabilization reserve.  If the fund is exhausted in a given year, the remaining requests will still be reviewed, and then qualified or disqualified as per the eligibility criteria.  The outstanding reimbursements for qualified projects will be detailed in the annual report to Council and will be used to anchor discussions on the relief fund’s amount for the subsequent year.  These outstanding reimbursements will then be released when the fund is replenished.

 

For the charitable and non-profit organizations, a set reimbursement rate will provide some certainty in their planning of their project budgets, in that the amount to be reimbursed is clear at the outset of the project timelines.

 

Recommendations 4 and 5

 

Within the mid-term governance report, City Council took measures to improve governance as part of its Transformation Agenda set out in the 2007-2010 City Strategic Plan.  The expanded delegation of authority provides greater autonomy for the Ward Councillors and greater authority to Standing Committees to be the final decision-maker of items within their mandate.  The result is a reduction in the number of transactional items at Council.

 

This delegation of authority will assist the charitable and non-profit organizations in two important ways.  First, the reliable application of a reimbursement rate will assist these organizations in their budgeting process in that they can plan with certainty the actual cost of their development-related fees given the rebate available through the Program.  Second, since the General Manager can process these requests on an ongoing basis once the eligibility criteria have been met, the reimbursement can be released in a timely fashion rather than making these organizations wait for transactional consent from Committee and Council.

 

A report will be prepared and presented to Council annually by April 1 of each year both as part of the requirements of delegated authority and to ensure continued transparency and consistency of the Program.  Limiting the process to an annual report will minimize the associated administrative costs and provide a forum to explain why individual projects were qualified or disqualified under the criteria of the Program.  Consequently, the report would include a listing of all the requests submitted the previous year, the construction projects that were eligible, the eligible fees, as well as those projects and fees that were ineligible along with the rationale for not processing a reimbursement.  Finally, the report will include an assessment and identification of what projects are underway or contemplated by the Ottawa hospitals for the next year and the projected demand for funding for the following fiscal year where available.

 

Recommendation 6

 

The fund amount will be reviewed on a yearly basis as part of the budget deliberations, and can be increased or decreased at Council’s discretion after a review of the use of the fund.  In addition, as the Program is unique and in view of the anticipated changes to the Ottawa hospital capital funding program beyond 2010, it is proposed that the Program be evaluated in three years’ time and that a report with any recommended changes be prepared and presented to City Council by end of Q4 2013.

 

CONSULTATION

 

The report has been circulated within Planning and Growth Management, Legal, and Finance. The request and recommended response are consistent with existing program practices within the City and Council direction.

 

The Ottawa Academy of Hospitals Executives has been consulted and the Academy provided an estimated value of proposed requests for reimbursement of fees paid between April 1, 2009 and December 31, 2010 to facilitate the analysis of the impact of the proposed program.  In addition, a copy of this report was forwarded to the Academy for review and information.

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

There are no legal/risk management impediments to approving the recommendations in this report.  Section 107 of the Municipal Act, 2001 provides that the City may make grants on such terms as council considers appropriate for any purpose Council considers to be in the interests of the municipality.

 

FINANCIAL IMPLICATIONS

 

The funding for this relief will be included in the 2010 draft estimates.

 

SUPPORTING DOCUMENTATION

 

Document 1      Program for Responding to Requests for Reimbursements of Development-related Fees

Document 2      Pending and Upcoming Requests for Reimbursements of Development-related Fees

 

DISPOSITION

 

The Planning and Growth Management Department to identify and confirm the development projects undertaken by charitable and non-profit organizations that qualified to receive funding assistance under this policy at the end of each year.

 

Finance to confirm reimbursement amounts, prepare the payments and adjust the accounts accordingly by the end of Q1 in the following year.

PROGRAM FOR RESPONDING TO REQUESTS FOR

REIMBURSEMENTS OF DEVELOPMENT-RELATED FEES                        DOCUMENT 1

 

 

Procedure For Evaluating Eligibility of Requests

 

  1. Requests will be submitted to the General Manager, Planning and Growth Management or his designate throughout the year from hospitals, charities and non-profit organizations.

 

  1. The Eligibility Review will occur after receiving the application and will follow the Application Eligibility Review Process detailed below:

 

Application Eligibility Review Process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


  1. An annual report is prepared listing all the requests and the amounts eligible, as well as a rationale for those requests deemed ineligible, for reimbursement. 

 

Eligibility Criteria for Organizations and their Development Projects

 

  1. Requests for reimbursement must be submitted within 12 months of the final occupancy permit being issued, and no later than 36 months after the building permit has been issued. 

 

  1. Applicants must be either:

 

    1. A Canadian registered charity, including non-profit hospitals; or
    2. An incorporated non-profit organization that is organized for the purpose of social welfare[1] or civic improvement[2].

 

  1. Applicants identified must be able to show proof of the aforementioned registration or incorporation status from the Canada Revenue Agency.  The status must be valid in the year the applicant submitted their development-related applications to be eligible for a refund. 

 

  1. In order to be eligible for a reimbursement of development-related applications, the applicants’ development project:

 

    1. Must provide services that are reflective of the classifications of municipal capital facilities eligible for tax exemptions (Ontario Regulation 603/06) and selected for this policy, as outlined in Schedule A below; and,

 

    1. Must provide services publicly, and in such a manner that the majority of the clientele are residents of the City of Ottawa.

 

  1. The applicant must be in good standing with regard to the regulations and payment of fees for all permits and development applications covered under this policy. 

 

  1. Except for the requests from the Ottawa hospitals, the requests for fee relief will be processed only when a final occupancy permit has been issued that confirms the construction was completed in compliance with the building permit plans and there are no outstanding Building Code Act issues or violations.

 

  1. Development-related application fees that are eligible for a reimbursement at a rate of 50 per cent are: building (construction and demolition) permit, site plan application, Zoning By-law amendment, demolition control and cash-in-lieu of parking.

 

  1. The reimbursement of fees will be limited to only that portion of the development-related application fees for qualifying construction projects that has not been reimbursed or subsidized by either the Provincial or Federal Governments, or any other municipal program.

 

  1. The applicant must agree to acknowledge the City’s contribution to their qualifying project in some manner, such as signage or visible recognition on their website.

 

Administration and Implementation

 

This Program will be posted on ottawa.ca along with other similar funding programs (Affordable Housing Funding, Building Permit Grant for Farmers, etc.).  The request form will be available online and can be submitted to the Building Code Services Branch for confirmation of project status.  The General Manager, Planning and Growth Management or his designate will make the determination regarding the project’s eligibility as per the updated delegated authority by-law.  Finance will verify fee reimbursement calculations and process the payment from the relief fund. 

 

Schedule A

Eligible Development Project Classifications

 

Selected Classification

Municipal Capital Facility (Ontario Regulation 603/06) Reference

Municipal facilities for the protection, regulation and control of animals

2.(1) 9.

Municipal facilities related to the provision of social and health services, including homes under the Homes for the Aged and Rest Homes Act

2. (1) 10.

Municipal facilities for public libraries

2. (1) 11.

Municipal community centres

2. (1) 14.

Municipal facilities used for cultural, recreational or tourist purposes

2. (1) 16.

 

PENDING AND UPCOMING REQUESTS FOR REIMBURSEMENTS

OF DEVELOPMENT-RELATED APPLICATION FEES                                    DOCUMENT 2

 

 

 

Reimbursement Rate Scenario

Charity / Non-Profit Organization

100%

 

75%

60%

50%

40%

Ottawa Hospital Linen Services

$199,917

$149,938

$119,950

$99,959

$79,967

YM-YWCA

$80,464

$60,348

$48,279

$40,232

$32,186

Rotary Respite Home

$39,750

$29,813

$23,850

$19,875

$15,900

Living Word Believers Church Daycare

$22,748

$17,061

$13,649

$11,374

$9,099

Ronald MacDonald House

$1,915

$1,436

$1,149

$957

$766

Société de Saint-Vincent de Paul

$890

$668

$534

$445

$356

Independent Living Resource Centre

$625

$469

$375

$313

$250

Total

$346,309

$259,733

$207,786

$173,155

$138,524

Pending requests by charities and non-profit organizations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upcoming requests for Ottawa hospitals (April 1, 2009 to December 31, 2010)

 

Hospital

Projects to December 2010

Estimated Building Permit Fees

Reimbursement Request

Total

Renovations

Children’s Hospital of Eastern Ontario (CHEO)

$10,000,000

$10,000,000

$125,000

$125,000

Élisabeth Bruyère Hospital

$0

$0

N/A

$0

Montfort

$0

$0

N/A

$0

Queensway Carleton Hospital

$101,000,000

$27,000,000

$1,181,000

$1,181,000

Royal Ottawa Health Care Group (ROHCG)

$4,000,000

$0

$55,000

$55,000

The Ottawa Hospital (Civic, General, Riverside)

$35,000,000

$7,000,000

$700,000

$700,000

Total

$150,000,000

$44,000,000

$2,061,000

$2,061,000

 

Hospitals

Reimbursement Rate Scenario

100%

75%

60%

50%

40%

Total upcoming refund requests (April 2009 – December 2010)

$2,061,000

$1,545,750

$1,236,600

$1,030,500

$824,400

Approximate annual request for 2009 & 2010

$1,030,500

$772,875

$618,300

$515,250

$412,200

 

 


[1] The organization must be providing assistance for disadvantaged groups in the City of Ottawa or for the general welfare of residents in the City of Ottawa. 

[2] The organization must be enhancing the quality of community and/or civic life in the City of Ottawa.