HomeMy WebLinkAboutDTS-07-017 - Building Permit Fee Review1
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Development &
Technical Services
Report To: Development & Technical Services Committee
Date of Meeting: January 29, 2007
Submitted By: James A. Witmer,
Director of Building and Environmental Remediation
Mike Seiling,
Manager of Building
Acting Chief Building Official
Prepared By: James A. Witmer,
Director of Building and Environmental Remediation
Mike Seiling,
Manager of Building
Acting Chief Building Official
Ward(s) Involved: All
Date of Report: January 18, 2007
Report No.: DTS-07-017
Subject: BUILDING PERMIT FEE REVIEW
RECOMMENDATION:
That Council endorse the proposed fee rates and recommendations identified in the BMA
report with an effective date of February 1, 2007.
BACKGROUND:
The City of Kitchener Building Division initiated a review of its building permit fees in 2006 to
ensure compliance with Bill 124; an Act to Improve Public Safety and to Increase Efficiency in
Building Code Enforcement. We retained the services of BMA Management Consulting Inc. to
conduct this review.
The review included an analysis of historical permit activity, an analysis of costs of services and
process mapping of the various stages associated with providing permit related services.
A review of existing documentation of activity mapping, cost allocation methods for direct and
indirect functions and reserve policies were included in the analysis, within the context of the
new legislative requirements. In addition, an analysis of prior year's activities, revenues and
expenditures were undertaken to identify whether the City is currently recovering the full cost of
service and to make recommendations on fees for 2007.
The objectives of the study were to ensure the recommended permit fees are:
• Compliant with legislation (Bill 124}
• Fair and reasonable
• Proportionate to the actual cost of the service
In addition, a comparison of fees of other municipalities was included for the purpose of
ensuring that the recommended fees are competitive and to provide financial context related to
fee adjustments.
The report (attached} includes a recommended fee structure. In accordance with the legislative
requirements, the recommendations and the building permit fees and policies are being
presented to Council in a Public Meeting session.
Finally, an objective of the study was to ensure that there was an open and transparent process
with opportunities for review and input from the industry. To this end, an introductory meeting
was held with the Waterloo Region Home Builders Liaison Committee as well as a follow up
meeting with presentation of the results. To assist in the analysis process, two members of the
building industry reviewed the detailed calculations of the fees and provided input during the
review process.
REPORT:
Attached is the report and recommendations prepared by BMA Management Consultants inc.
which forms the basis for the proposed fee changes.
FINANCIAL IMPLICATIONS:
If the proposed fee rates are not approved, the Building Division which operates as an
Enterprise may be unable to sustain itself and ensure that the requirements and obligations
associated with the enforcement of the Building Code Act and regulation are met to protect the
health and safety of the community.
Respectfully submitted,
James A. Witmer, Mike Selling,
Director of Building and Manager of Building
Environmental Remediation Acting Chief Building Official
List of Attachments
BMA Management Consulting Inc. Building Permit Review Report