12. CAPITAL FUNDING SUPPORT – CHILDREN’S HOSPITAL OF EASTERN ONTARIO FOUNDATION

AIDE AU FINANCEMENT DES IMMOBILISATIONS – FONDATION DU CENTRE HOSPITALIER POUR ENFANTS DE L’EST DE l’ONTARIO

COMMITTEE RECOMMENDATION

That Council approve that the Children’s Hospital of Eastern Ontario Foundation be remitted $111,992.66, representing the amount paid to the City for building permit fees for construction projects undertaken pursuant to the hospital’s approved 10-Year Capital Program up to and including March 31, 2009, as noted in Document 2.

RECOMMANDATION DU COMITÉ

Que le Conseil approuve le paiement de 111,992.66$ à Fondation du Centre hospitalier pour enfants de l’est de l’Ontario, représentant le montant payé à la Ville pour les droits de permis de construction relativement aux projets de construction entrepris et dans le cadre du Programme d'immobilisations de 10 ans approuvé de l’Hôpital se terminant le 31 mars 2009, comme le stipule le document 2.

Documentation

1. Deputy City Manager's report, Infrastructure Services and Community Sustainability, dated 13 November 2009 (ACS2009-ICS-PGM-0225)

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

13 November 2009 / le 13 novembre 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-0225

SUBJECT:	CAPITAL FUNDING SUPPORT – CHILDREN’S HOSPITAL OF EASTERN ONTARIO FOUNDATION
OBJET :	AIDE AU FINANCEMENT DES IMMOBILISATIONS – FONDATION DU CENTRE HOSPITALIER POUR ENFANTS DE L’EST DE l’ONTARIO

REPORT RECOMMENDATION

That the Corporate Services and Economic Development Committee recommend Council approve that the Children’s Hospital of Eastern Ontario Foundation be remitted $111,992.66, representing the amount paid to the City for building permit fees for construction projects undertaken pursuant to the hospital’s approved 10-Year Capital Program up to and including March 31, 2009, as noted in Document 2.

RECOMMANDATION DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver le paiement de 111,992.66$ à Fondation du Centre hospitalier pour enfants de l’est de l’Ontario, représentant le montant payé à la Ville pour les droits de permis de construction relativement aux projets de construction entrepris et dans le cadre du Programme d'immobilisations de 10 ans approuvé de l’Hôpital se terminant le 31 mars 2009, comme le stipule le document 2.

BACKGROUND

On January 23, 2002, City Council confirmed its commitment to the quality of life of the community by partnering with Ottawa’s hospitals to tackle the financial challenge of raising $232 million locally to fund the 10-year capital requirements identified by the hospitals. Specifically, Council considered and approved the following recommendations from the Corporate Services and Economic Development Committee:

1. Council will waive development charges on hospital capital projects, on a case-by-case basis, subject to a city staff report confirming that the projects fall within the scope of this 10-year program;

2. Council will remit permit fees paid to the City on hospital capital projects, on a case-by-case basis, subject to a city staff report confirming that the projects fall within the scope of this 10-year program.

Development by the Ottawa hospitals is specifically exempted from the Development Charges By-law 2004-298. To date, City Council has reimbursed to the Ottawa hospitals $8,563,371.50 in building permit, planning approval fees and levies to meet the challenge of raising $232 million locally in support of the capital requirements of the local hospitals.

On March 11, 2009, the Corporate Service and Economic Development Committee recommended to Council that it “…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.” The new direction, as approved by Council, was necessary to limit any budget pressures created as a result of funding the reimbursements through a depleted City-wide Capital Reserve Fund, while providing the hospitals an opportunity to recoup fees for committed capital projects.

The Children’s Hospital of Eastern Ontario Foundation has requested reimbursement of fees paid up to March 31, 2009 in relation to capital projects falling within the scope of their 10-Year Capital Funding Program as approved by the Province (refer to letter – Document 1).

Recommendation

Review of the request for reimbursement from the Children’s Hospital of Eastern Ontario Foundation was undertaken in accordance with the criteria established January 23, 2002 and in keeping with the more recent direction from Council. A comprehensive review to identify all outstanding remissions discovered an overpayment of $8,291.34, which was offset via this reimbursement such that the Children’s Hospital of Eastern Ontario Foundation did not obtain more than what was directed by Council.

Support for requests for grants to offset building permit fees ($111,992.66) must be funded from the City-Wide Capital Reserve Fund.

RURAL IMPLICATIONS

N/A

CONSULTATION

The Children’s Hospital of Eastern Ontario Foundation has been consulted and a copy of this report has been forwarded to them for review and information.

COMMENTS BY THE WARD COUNCILLOR(S)

Councillor Hume supports the City’s contribution to assisting the hospital and its infrastructure program.

LEGAL/RISK MANAGEMENT IMPLICATIONS

There are no legal/risk management impediments to implementing the recommendations of this report.

CITY STRATEGIC PLAN

E7 – Set a high level and a proactive municipal response to meet the social services, social housing, supported living and public health needs of Ottawa residents.

TECHNICAL IMPLICATIONS

N/A

FINANCIAL IMPLICATIONS

Approval of this report will result in a total remittance of $111,992.66 to the Children’s Hospital of Eastern Ontario Foundation to be funded as follows:

· City-wide Capital Reserve Fund $111,992.66. This amount represents the Building Permit fees paid by the Children’s Hospital of Eastern Ontario Foundation. In accordance with provincial legislation, funds collected for these purposes cannot be reimbursed from the Building Code Services Permit Fees account. Based on the level of contributions to the City Wide Reserve Fund and the projected commitments, the 2009 year-end balance in the Fund is forecasted to be in a $6.6 million overdraft position. Should Committee and Council approve this grant request, future capital programs will be restricted in order to re-establish a positive Fund balance.

SUPPORTING DOCUMENTATION

Document 1 – Letter from the Children’s Hospital of Eastern Ontario Foundation

Document 2 – Summary of Fees and Charges

DISPOSITION

The Planning and Growth Management Department is to process the remittance request.

Finance is to prepare the payment to the Children’s Hospital of Eastern Ontario Foundation and adjust accounts accordingly.

DOCUMENT 1

LETTER FROM THE CHILDEN’S HOSPITAL OF EASTERN ONTARIO FOUNDATION

SUMMARY OF FEES AND CHARGES DOCUMENT 2