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HomeMy WebLinkAboutFSD-006-24Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Planning and Development Committee Date of Meeting: February 12, 2024 Report Number: FSD-006-24 Submitted By: Reviewed By: Authored By: Trevor Pinn, Deputy CAO, Finance and Technology / Treasurer Mary-Anne Dempster, CAO By-law Number: Brent Rice, Chief Building Official File Number: Resolution#: Report Subject: Building Permit and Inspection Fee Amendments and New Building By- Law Recommendation: 1.That Report FSD-006-24, and any related delegations or communication items, be received; 2.That the Building By-law, attached to Report FSD-006-24, as Attachment 2, repealing By-law 2017-086, be approved; 3.That all interested parties listed in Report FSD-006-24, and any delegations, be advised of Council’s decision. Municipality of Clarington Page 2 Report FSD-006-24 Report Overview This report provides an update on the Building Permit Fee study and proposed amendments to the Building By-law. 1. Background 1.1 In the fall of 2022, the Municipality retained the services of Hemson Consulting Ltd., to undertake a building permit fees study to comply with Building Code Statute Law Amendment Act, 2002 – Bill 124. This study analyzes the costs of administering and enforcing the Building Code in Clarington and makes recommendations regarding the new building permit fees necessary to recoup the cost of providing the required building permit services. 1.2 The current building permit fees were approved by Council through Report EGD -020-17 and By-Law #2017-086. Building permit and inspection fees were increased by 3% each year (2018 to 2022). The building permit fees study was to be updated in 20 23 to determine if the present permit fees are still adequate to administer and enforce the Building Code. 1.3 The Municipality hired Hemson Consulting Ltd. in the fall of 2022 to update the building permit fees study. Please refer to Attachment 1 for Hemson Consulting Ltd., 2023 Building Permit Fee Update Study. 1.4 The Building Code Statute Law Amendment Act, 2002 was passed by the provincial government in response to the building industry’s concerns that many municipalities were collecting large permit revenues but not providing adequate services. The legislation created a business unit that operates within the municipality but is financially self-sustaining. The legislation requires that permit fees can only be used for the administration and enforcement of the Ontario Building Code Act. Permit fees can be set to cover direct and indirect costs, and to contribute to a reserve fund which will finance the administration and enforcement of the Building Code Act during an economic downturn when annual permit revenue may be reduced. 1.5 Bill 124 also included the following requirements of Municipalities and Building Inspectors:  Legislated minimum time frames for building permit review process which added more pressure to the building staff for the processing of building permit.  Legislated time frames for mandatory inspections of buildings plus additional heating inspections were required. Municipality of Clarington Page 3 Report FSD-006-24  Notification for an inspection must now be undertaken within two days of being notified, adding more pressure to the building staff. All Building Officials must take the Ministry of Housing exams and become qualified in numerous categories in order to perform plans examination and inspections. Building Code Regulations 1.6 The Building Code is continually evolving to address lessons learned from building failures/fires, new technologies, and climate change. 1.7 A new Ontario Building Code is anticipated to be filed in the 1st quarter of 2024. The current edition of the Building Code was released in November 2012 and took effect January 1, 2014. Requirements for Changing Fees 1.8 The Ontario Building Code, Division C – Part 1 article 1.9.1.2 requires that before passing a by-law, regulation, or resolution under Clause 7(1)(c) of the Building Code Act to introduce or change a fee imposed for applications for a permit or for the issuance of a permit, a principal authority shall: a) hold at least one public meeting at which any person who attends has an opportunity to make representations with respect to the matter, b) ensure that a minimum of 21 days’ notice of the public meeting is given in accordance with Clause (c), including giving 21 days’ notice to e very person and organization that has, within five years before the day of the public meeting, requested that the principal authority provide the person or organization with such notice and has provided an address for the notice, c) ensure that the notice under Clause (b), • sets out the intention of the principal authority to pass the by-law, regulation, or resolution under section 7 of the Act and whether the by-law, regulation, or resolution would impose any fee that was not in effect on the day the notice is given or would change any fee that was in force on the day the notice is given, • is sent by regular mail to the last address provided by the person or organization that requested the notice in accordance with Clause (b), and • sets out the information described in Clause (d) or states that the information will be made available at no cost to any member of the public upon request, and Municipality of Clarington Page 4 Report FSD-006-24 d) make the following information available to the public:  an estimate of the costs of administering and enforcing the Act by the principal authority,  the amount of the fee or of the change to the existing fee, and  the rationale for imposing or changing the fee. Building Permit Fees 1.9 In the 2005, Report EGD-24-05 for Building Regulatory Changes – Impact of Building Code Statute Law Amendment Act and Ontario Regulation 305/03, Coun cil approved the increasing of the building permit fees and inspections rates by 41.11%. The fees approved in 2005 were constant over a five-year period which enabled the building community to forecast its building construction costs in Clarington. 1.10 In the 2011, Report EGD-011-11 , Building Permit and Inspection Fee Amendments and New Building By-law, Council approved the increase of building permit fees and inspections by 16.4% along with an annual 3 percent indexing to be written into the building by-law. The annual indexing percentage was effective January 1st each year. This annual indexing percentage assisted in keeping the revenues more in alignment with the building permit and inspection costs that increase annually due to employer and employee benefits, staff negotiations, and operating costs within the Building Division . 1.11 In the 2017, Report EGD-020-17 for Building Permit and Inspection Fee Amendments and New Building By-law, Council approved the increasing of the building permit fees and inspections rates by 1.30% and the fees were indexed by 3% each year over the past five-year period. 1.12 The updated study by Hemson Consulting Limited has determined that the present building permit fees are inadequate to recover the “anticipated reasonable cost” or administration and enforcement of the Building Code Act. 1.13 The following table lists the allowable cost recovery items and establishes a total cost projected for 2024 for the provision of Building Code services in the Municipality. Summary of the Analysis of Costs. Municipality of Clarington Page 5 Report FSD-006-24 Cost Type Average Annual Cost Direct (Note 1) $3,181,000 Indirect (Note 2) 409,100 Reserve Fund Contribution 77,500 Total $3,667,600 Note 1 - Direct costs – cost of the Building Division for processing of building permit applications, review building plans, conducting inspections, and building related enforcement duties. Note 2 - Indirect costs – cost for the support and overhead services to the Building Division. 1.14 The annual building permit revenue is estimated at $3,667,600 on a forecast of future building activity. This forecast was prepared by Hemson Consulting Limited, based on current building data, existing trends and discussions with Mun icipal staff. 1.15 The total cost projected for 2024 exceeds the estimated building permit revenues by 8.99%. Projected Costs $3,667,645 Estimated Revenues $3,365,023 % Difference 8.99% 1.16 In accordance with the provisions of the Building Code Act, the Municipality is permitted to increase all building permit fees and inspection fees by 8.99%, which equates to an increase for a single-family dwelling from $15.33 to $16.71 per square metre. A list of the current and proposed fees is included starting on page 23 of Hemson’s report included as Attachment 1. 1.17 The revenue stream from the proposed fee increase will cover the anticipated direct and indirect costs to the Municipality as allowed by the Building Code Act, as well as contribute to the reserve fund as permitted by legislation. This reserve fund would be used to maintain services during an economic downturn. Municipality of Clarington Page 6 Report FSD-006-24 Public Meeting 1.18 A Public meeting will be held pursuant to the Building Code Act on February 12, 2024, at the commencement of the same Planning and Development Committee meeting where Committee is receiving this report. 1.19 Should Council wish to consider amendments to the Building By-Law based on either communications or delegations at the public meeting or by Committee request, it is suggested that an addendum report be requested to specifically address issues raised. Annual Building Permit Fees Report 1.20 The building code requires that a report be prepared annually showing the total fees collected in the previous twelve-month period. This report must also show a summary of the indirect and direct cost of delivering the building services and the amount of reserve fund established for administration and enforcement of the Building Code. This annual report is sent to Council as information and then posted on Clarington’s website every year. Changes to Our Building By-law 1.21 Changes have been made to the Building By-law to clarify and streamline the process, and administration and enforcement of the Building Code Act. A new Building By-law is proposed (see Attachment 2), which includes the following major changes:  Amended the requirement for plans, specifications, documents, and other information required to be submitted electronically.  Amended to reflect the new department names. 2. Financial Considerations 2.1 Should Council decide not to approve the 8.99% increase to the building fees or delay making a decision or modify the percentage increase to the building fees, it could place an undue burden on the tax levy as a result of the present shortfall in the building services unit. 3. Strategic Plan 3.1 Undertake a building permit fees study analyzing the costs of administering and enforcing the Building Code in Clarington and making recommendations regarding new building permit fees necessary to efficiently operate the Building Division and ensuring that the cost of providing the required building permit services is recouped aligns with Municipality of Clarington Page 7 Report FSD-006-24 the Strategic Plans objective; To be a leader in the delivery of efficient, effective, and meaningful municipal services. 4. Concurrence 4.1 This report has been reviewed by the Deputy CAO, Finance and Technology and the Deputy CAO, Planning and Infrastructure who concur with the recommendation. 5. Conclusion 5.1 It is respectfully recommended that increasing the building permit fees by 8.99% on March 1, 2024, with an indexing of 3% annually on January 1st of each future year, allows the Building Division to be financially self -sustainable while providing the building industry the ability to budget for the applicable building permit fee. The revisions to the building by-law provide clarity and streamline the process of administering a nd enforcement of the Building Code Act and the Building Code. Staff Contact: Brent Rice, Chief Building Official, 905-623-3379 extension 2303 or brice@clarington.net. Trevor Pinn, Deputy CAO, Finance and Technology, 905-623-3379 extension 2602 or tpinn@clarington.net Carlos Salazar, Deputy CAO, Planning and Infrastructure, 905-623-3379 extension 2402 or csalazar@clarington.net. Attachments: Attachment 1 – Hemson Consulting Ltd. 2023 Building Permit Fee Update Study Attachment 2 – New Building By-law Interested Parties: There are no interested parties to be notified of Council's decision. DRAFT REPORT PREPARED BY HEMSON FOR THE MUNICIPALITY OF CLARINGTON BUILDING PERMIT FEE UPDATESTUDY November 7th, 2023 1000 - 30 St. Patrick Street, Toronto ON M5T 3A3 416 593 5090 | hemson@hemson.com | www.hemson.com Attachment 1 to Report FSD-006-24 CONTENTS EXECUTIVE SUMMARY 1.INTRODUCTION 2 A.Building Code Act Fee Requirements 2 B.Report Structure 3 2.BUILDING CODE ACTIVITIES IN CLARINGTON 4 A.Current Permit Application Process 4 B.Future Service Delivery 4 C.Permit Fees 5 3.ANALYSIS OF REVENUES 6 A.Historical Building Activity 6 B.Historical Permit Fee Revenues 6 C.Projected Permit Revenues 10 4.ANALYSIS OF COSTS 12 A.Direct Costs 13 B.Indirect (Overhead) Costs 19 C.Reserve Fund Contribution 21 D.Cost Summary 21 5.CALCULATED FEES 22 A.Full Cost Recovery Fees 22 B.Permit Fee Comparisons 26 Attachment 1 to Report FSD-006-24 EXECUTIVE SUMMARY In 2017, the Municipality of Clarington undertook a review of its building permit fees. The purpose of the review was to calculate fees that recovered the full cost of providing Building Code services in accordance with the Building Code Act. Fees were calculated on the basis that they would be reviewed on a five-year cycle, and fees have been adjusted each year to account for the effects of inflation. Given that the five-year fee cycle is complete, the Municipality has initiated a building permit fee review update. The objective of the update is to recalculate full cost recovery building permit fees based on the current Building Code expenditure information and revenue forecasts. Note that this cycle of the building permit fee study was set to take place in 2022, following the five-year cycle from 2017. However, as a result of the recent changes made to the Planning Act and Development Charges Act by the province which implicates the way the Municipality would review development applications and the revenues received, the review was delayed by a year. The full cost of providing Building Code services in the Municipality is as follows: SUMMARY OF ALL COSTS Total Direct Costs $3,181,000 86.7% Total Indirect Costs $409,100 11.2% Reserve Fund Provision $77,500 2.1% Total Costs $3,667,600 100% Note: Figures are rounded The anticipated average annual revenue from building permits for the review period (2023- 2027) is as follows: SUMMARY OF PROJECTED AVERAGE ANNUAL REVENUES (2023 2027) Residential New Dwelling Units $2,464,000 Residential Other $183,000 Non-Residential and other $718,000 Total Average Annual Revenue $3,365,000 The average annual costs projected for the five-year period (2023-2027) exceed the anticipated average building permit fee revenues over the five years by 8.99% As such, the maximum increase in permit fees, which can be justified under the Building Code Act is 8.99% on the 2023 fees levied in the Municipality of Clarington. Executive Summary | 1 Attachment 1 to Report FSD-006-24 1. INTRODUCTION In 2017, the Municipality of Clarington undertook a review of its building permit fees. The purpose of the review was to calculate fees that recovered the full cost of providing Building Code services in accordance with the Building Code Act. The Review concluded that the Municipality could justify increasing its building permit fees by 1.30% to achieve full cost recovery. Following the review, the Municipality increased its fees to achieve full cost recovery. The 2017 review calculated building permit fees on the basis that they would be reviewed every five years. Given that the five-year cycle was completed in 2022, the Municipality has initiated a building permit fee review study. Hemson Consulting Ltd. was retained to assist with the study. The analysis looks at the fees required to recover the full cost of administering and enforcing the Building Code over the next five years from 2023-2027. Note that this cycle of the building permit fee study was set to take place in 2022, following the five-year cycle from 2017. However, as a result of the recent changes made to the Planning Act and Development Charges Act by the province which impacts the way the Municipality would review development applications and the revenues received, the review was delayed by a year. A. BUILDING CODE ACT FEE REQUIREMENTS Municipalities are responsible for ensuring that building construction is undertaken in accordance with the provisions of the Building Code Act, 1992 (the Act). To offset the costs of providing Building Code services, municipalities are permitted to charge fees for building permit applications and inspections of buildings. The Act states that Building Code fees must not exceed “the anticipated reasonable costs” required to administer and enforce the Building Code during building construction. In addition, municipalities must prepare an annual report that records the amount of its fees as well as the cost it incurs during the process. The current Building Code continues Ontario Regulation 305/03, which introduced the requirement that the annual report must record both the direct and indirect costs of reviewing building permit applications and of conducting various inspections (i.e. permit inspections and septic maintenance inspections). It also required a municipality to report on any reserve funds it may have. Finally, the Regulation sets out the requirements for a public process that must accompany the setting of building permit and inspection fees. There is no provision in the Building Code Act for appealing fees. Attachment 1 to Report FSD-006-24 B. REPORT STRUCTURE This report is divided into the following sections: Section 2 provides a description of the way in which the Municipality carries out its responsibilities under the Act. It also describes the current building permit fee structure. Section 3 contains an analysis of past building permit activity and an assessment of the level of activity that is reasonable to anticipate over the next five years for the purposes of setting fees. Section 4 presents an analysis of the anticipated direct and indirect (overhead) costs of delivering services required to administer and enforce the Building Code and related Municipal Act fees under the authority of the Building Division. Section 5 reviews the current building permit fee structure and proposes new fee rates for the Municipality on the basis of a five-year cycle. Fee comparisons with surrounding municipalities are also made. Attachment 1 to Report FSD-006-24 2. BUILDING CODE ACTIVITIES IN CLARINGTON Section 3(2) of the Building Code Act require councils of municipalities to appoint a chief building official and inspectors to carry out the enforcement of the Ontario Building Code. A number of municipal staff are responsible for processing applications and conducting inspections in respect of building in Clarington. Despite most of the work resting with the Building Inspection department, there is some support from Planning and Infrastructure Services, Fire and Emergency Services and Legal Services. The Building Inspection department is led by the Chief Building Official, who reports directly to the Director of Planning and Infrastructure Services. The offices are located at the Municipal Office at 40 Temperance Street, Bowmanville, Ontario. A. CURRENT PERMIT APPLICATION PROCESS The activities of the Building Inspection department are related to administering and enforcing the Building Code. Anywhere between 900 and 1,300 building permit applications are received annually, and each application undergoes a lengthy review process. The Building Code requires that a municipality review a permit application within a certain timeframe where the application meets the criteria set out in the Code. Within this timeframe, the Chief Building Official must either issue the permit or refuse it with reasons for denial. The process usually involves one or more inspections of each building site and may also involve staff in other departments such as Planning and Infrastructure Services (includes engineering), Fire and Emergency Services (for fire prevention related inspection) and Legal Services. B. FUTURE SERVICE DELIVERY department intends to hire a total of five new positions through to 2030 - supervisor of inspections, two new building inspectors, a plumbing/HVAC inspector, and permit coordinator. The timing of the new positions is somewhat dependent on the level of permit activity as a result, only a proportion of the these salaries are included in the cost analysis despite these positions being 100% related to administering and enforcing the Building Code. Attachment 1 to Report FSD-006-24 C. PERMIT FEES Permit fees are collected when permits are issued. As fees are based on the individual components of an application there is no set fee for any given application type. There are in fact more than 70 different fee categories. The Municipality currently uses several methods of charging fees. The bulk of the fees are based on building area (i.e. $/square metre), but there are also flat rate fees (see Schedule B of the current fees By-law 2017-086). Attachment 1 to Report FSD-006-24 3. ANALYSIS OF REVENUES This section contains an analysis of recent building activity in Clarington and a summary of the level of activity that is anticipated over the next five years for the purposes of setting fees. A. HISTORICAL BUILDING ACTIVITY In the preceding five year period from 2018 through 2022, the average number of permits issued in Clarington was 1,097 (see Table 1), which is a slight decline from the sample period of the previous review (2012-2016). Overall, about 82% of permits are related to residential construction, which includes permits related to the creation of new residential units, new sheds, decks, garages, as well as other interior alterations requiring a building permit. B. HISTORICAL PERMIT FEE REVENUES Building permit fee revenue has shown periods of volatility over the last five years but averaging approximately $2.6 million per year since 2018. Overall, 2018 was the highest grossing year at over $3.3 million, while 2022 was the lowest at $1.9 million (Table 2). Of total revenues, 76% can be attributed to residential related permit fees. Despite the immediate impacts that COVID-19 had on development in the community, 2020 and 2021 permit data indicates development activity was quick to recover, however, 2022 saw a significant decline in permit revenue compared to the 5-year average. other residential and non-residential types) for the period of 2018 through 2022 is provided in Table 2. The table demonstrates that the number of new residential permits is highly correlated with the total revenue. Further to that, Figure 1 displays the relationship between permit volume and fee revenues in Clarington between 2018 and 2022. The figure demonstrates the close correlation between permit volumes and fee revenues. Attachment 1 to Report FSD-006-24 Figure 1: Building Permit Activity Municipality of Clarington 2018-2022 $3,500,000 1,400 $3,000,000 1,200 $2,500,000 1,000 $2,000,000 800 $1,500,000 600 $1,000,000 400 $500,000 200 $- 0 2018 2019 2020 2021 2022 Total Permit Revenue Permit Activity Total Permit Revenues (2023$) Permit Volume Attachment 1 to Report FSD-006-24 TABLE 1 MUNICIPALITY OF CLARINGTON 2023 BUILDING PERMIT FEE UPDATE BUILDING PERMIT ACTIVITY 2018-2022 Category of Permit Types 2018 2019 2020 2021 2022 5 Year Average 2018-2022 # of Permits by Type Residential (1) 1,057 758 990 910 793 902 Industrial 36 27 22 16 43 29 Government 9 5 7 20 5 9 Commercial 65 64 65 82 57 67 Institutional 19 16 11 19 13 16 Agricultural 43 20 18 33 17 26 Demolition 47 47 60 47 43 49 Total 1,276 937 1,173 1,127 971 1097 Note 1: Includes permits related to the creation of new residenital units, interior alterations and other permits (deck s, garage, sheds, etc.). Sources: Municipality of Clarington Building Permit data. Attachment 1 to Report FSD-006-24 TABLE 2 MUNICIPALITY OF CLARINGTON 2023 BUILDING PERMIT FEE UPDATE BUILDIING PERMIT FEE REVENUE 2018 - 2022 (in $2023) 2018 2019 2020 2021 2022 5 Year Average 2018-2022 Total Adjusted Fee Revenue $ 3,306,816 $ 2,116,275 $ 2,655,518 $ 3,083,866 $ 1,887,641 $ 2,610,023 Fee Revenue by Permit Type (1) Residential $ 2,426,276 $ 1,383,510 $ 2,337,453 $ 2,511,525 $ 1,271,897 $ 1,986,132 Industrial $ 617,227 $ 497,593 $ 79,878 $ 104,736 $ 399,953 $ 339,877 Government $ 71,472 $ 237 $ 2,432 $ 287,591 $ 117 $ 72,370 Commercial $ 65,256 $ 169,869 $ 191,617 $ 105,823 $ 157,658 $ 138,045 Institutional $ 45,872 $ 19,364 $ 14,739 $ 24,215 $ 27,894 $ 26,417 Agricultural $ 75,202 $ 40,810 $ 24,318 $ 43,714 $ 24,076 $ 41,624 Demolition $ 5,512 $ 4,891 $ 5,080 $ 6,262 $ 6,046 $ 5,558 Source: Municipality of Clarington Financial Data. Note 1: Building Permit Revenue by Category is all the building permit numbers listed by year and not necessarily the year building permit revenue is received. Attachment 1 to Report FSD-006-24 C. PROJECTED PERMIT REVENUES A forecast of building permit revenues in Clarington over the next five-year cycle period (2023-2027) has been prepared for fee setting purposes. The forecast is based on growth Charges Background Study (2020), as well as analysis and discussion with Clarington staff. Overall, it is anticipated that revenues moving forward will be higher than the preceding five-year period to reflect the number of new residential units in the planning application process. Furthermore, it is anticipated that there will be a similar uptick in non-residential activity to complement the expected residential growth. Capturing these anticipated construction trends, the Municipality is assumed to generate approximately $3.36 million on average per year from 2023 to 2027, which would represent a level of activity closer to those trends observed pre-Covid. Table 3 below provides an overview of the average annual revenue projections by key revenue category, while Figure 2 illustrates the forecast average compared to the historical revenue trends. Although the average level of permit fee revenues over the forthcoming planning period is anticipated to be greater than historical average, a similar proportion of revenues are anticipated to be residential permit related. This forecast represents an average of approximately 780 new dwelling units per year. TABLE 3: SUMMARY OF PROJECTED AVERAGE ANNUAL REVENUES (2023 2027) Residential New Dwelling Units $2,464,000 Residential Other $183,000 Non-Residential and other $717,000 Total Average Annual Revenue $3,364,000 Attachment 1 to Report FSD-006-24 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2018 2019 2020 2021 2022 Forecasted Average Figure 2: Municipality of Clarington Building Permit Fee Revenue 2018-2022 and 2023-2027 Forecasted Annual Average ($2023) Source: Municipality of Clarington Financial Data Attachment 1 to Report FSD-006-24 4. ANALYSIS OF COSTS This section summarizes the calculation of the cost of administering and enforcing the provisions of the Building Code in Clarington. To pay for the costs of providing Building Code services, municipalities are permitted to charge fees for processing building permit applications. The Act requires that the permit fees not exceed “the anticipated reasonable costs to administer and enforce the Act”. In addition, municipalities are required to prepare annual reports that record the amount of fees received and the costs incurred in administering the process. The Code requires that annual reports record and distinguish the direct and indirect costs of reviewing applications conducting building inspections. In this regard: Direct costs include the costs of reviewing building permit applications and inspecting buildings; and Indirect costs include the support and overhead costs of administering and enforcing the process. The Building Code also sets out the requirements for a public process that must accompany the setting of fees, including: Holding at least one public meeting; Providing 21 notice of the public meeting; and Providing in the notice an estimate of the costs of providing Building Code services as well as the amount and rationale for new fees. Finally, if a reserve fund for Building Code activities has been established it must be accounted for in annual reports. Annual reports must also include the balance of any building permit reserve funds municipalities may have. It is anticipated that the analysis of costs presented here will serve as a reference for future annual reports. Attachment 1 to Report FSD-006-24 A. DIRECT COSTS A number of Municipal staff are responsible for processing applications in respect to building matters in Clarington. Despite most of the work resting with the Building Services department, there is some support from Planning and Infrastructure Services, Fire Prevention, and Legal Services. All time spent by Municipal staff reviewing building permit applications, inspecting buildings, carrying out other tasks within the division fee by-law as well as the cost of the resources they use is considered to be a direct cost. Time shares have been determined based on information obtained from detailed staff interviews and time tracking data. Although a portion of staff time is directly involved with Building Code activities and related Building Services activities associated with fees levied under the Municipal Act, a share of time is indirect. As shown on Table 4, calculations are divided by payroll and other capital and operating costs. Payroll costs including benefits, which account for the large majority of direct costs, amount to $2.7 million. Please note, the cost analysis includes the current staff levels and complements within the division, including future projected positions, which have been pro- rated based on their expected timing within the 5-year time horizon. Space costs include shares of the operating costs of the administration building and fire station, as well as shares of the capital replacement cost of these buildings. Operating cost shares are determined by multiplying the share of current office space attributed to Building Services. Capital replacement costs for the new administration centre are based on a 50 year lifecycle. The total direct cost of space that can be attributed to Building Code activities is $141,200 ($137,000 for the administration centre and a further $4,300 related to the Bomanville Fire Station). Added to these costs is the cost associated with the replacement of workstation capital (such as computers and other equipment), the cost of the building permit fee review (allocated over five years), and the capital replacement of vehicles used for Building Code services. The total direct capital cost of these items amounts to $62,000. Other operating direct costs including office supplies, uniforms and clothing, fuel, memberships, and professional development amount to approximately $276,900 across the various involved divisions. Attachment 1 to Report FSD-006-24 TABLE 4 - PAGE 1-3 MUNICIPALITY OF CLARINGTON 2023 BUILDING PERMIT FEE UPDATE DIRECT COSTS - ADMINISTRATION AND ENFORCEMENT OF BUILDING CODE PAYROLL (2023) Support of Building Code Other Support Payroll Share Building Services Chief Building Official 100.0% 0.0% $ 208,882 Deputy Chief Builidng Official 100.0% 0.0% $ 148,938 Senior Building Inspector 100.0% 0.0% $ 111,803 Senior Building Inspector 100.0% 0.0% $ 108,341 Building Inspector 100.0% 0.0% $ 106,797 Building Inspector 100.0% 0.0% $ 92,467 Building Inspector 100.0% 0.0% $ 97,126 Senior Plumbing/Heating Inspector 100.0% 0.0% $ 111,803 Plumbing/Heating Inspector 100.0% 0.0% $ 106,797 Plumbing/Heating Inspector 100.0% 0.0% $ 106,797 Permit Clerk 100.0% 0.0% $ 86,691 Permit Clerk 100.0% 0.0% $ 86,691 Permit Clerk 100.0% 0.0% $ 86,691 Senior Plans Examiner 100.0% 0.0% $ 111,803 Plans Examiner 100.0% 0.0% $ 106,797 Plans Examiner 100.0% 0.0% $ 106,797 Plans Examiner 100.0% 0.0% $ 97,126 Building Engineer 100.0% 0.0% $ 148,938 Subtotal Building Services Share Provision for New Positions 100.0% 0.0% $ 2,031,284 Supervisor of Inspections 100.0% 0.0% $ 46,233 Building Inspector 100.0% 0.0% $ 46,233 Building Inspector 100.0% 0.0% $ 48,563 Plumbing/HVAC Inspector 100.0% 0.0% $ 53,398 Permit Coordinator 100.0% 0.0% $ 43,345 Attachment 1 to Report FSD-006-24 Support of Building Code Other Support Payroll Share Planning and Infrastructure Services Planner I - Dev Review 28.0% 72.0% $ 25,823 Planner I - Dev Review 28.0% 72.0% $ 27,035 Planner l - Dev Review 28.0% 72.0% $ 24,599 Manager of Development Review 6.0% 94.0% $ 10,133 Principal Planner-Dev Review 3.0% 97.0% $ 4,487 Principal Planner-Dev Review 3.0% 97.0% $ 3,116 Principal Planner-Dev Review 3.0% 97.0% $ 3,116 Senior Planner-Dev Review 3.0% 97.0% $ 3,784 Senior Planner-Dev Review 3.0% 97.0% $ 3,784 Senior Planner-Dev Review 3.0% 97.0% $ 3,784 Planner II-Dev Review 3.0% 97.0% $ 3,185 Planner II-Dev Review 3.0% 97.0% $ 3,354 Urban Designer/Senior Planner 3.0% 97.0% $ 3,601 Principal Planner-Comm Planning/Design 3.0% 97.0% $ 3,116 Principal Planner-Comm Planning/Design 3.0% 97.0% $ 3,116 Principal Planner-Comm Planning/Design 3.0% 97.0% $ 4,267 Senior Planner-Comm Planning/Design 3.0% 97.0% $ 3,492 Planner II-Comm Planning/Design 3.0% 97.0% $ 3,185 Planner II-Comm Planning/Design 3.0% 97.0% $ 3,125 Planner II-Comm Planning/Design 3.0% 97.0% $ 3,125 Planner I-Comm Planning/Design 3.0% 97.0% $ 1,982 Manager of Community Planning/Design 3.0% 97.0% $ 5,600 Director of Planning 10.0% 90.0% $ 23,767 Administrative Assistant 20.0% 80.0% $ 20,314 Manager Development Engineering 2.0% 98.0% $ 4,178 Engineering Coordinator 2.0% 98.0% $ 2,236 Development Review Technician 5.0% 95.0% $ 5,340 Development Review Technician Remainder 5.0% 95.0% $ 4,856 Subtotal Planning and Development Share 4.5% 95.5% $ 211,499 Attachment 1 to Report FSD-006-24 Support of Building Code Other Support Payroll Share Fire Prevention and Administration Chief Fire Prevention Officer 25.0% 75.0% $ 48,779 Fire Prevention Officer 25.0% 75.0% $ 42,036 Fire Prevention Inspectors 25.0% 75.0% $ 36,246 Fire Prevention Inspectors 25.0% 75.0% $ 36,246 Fire Prevention Inspectors 25.0% 75.0% $ 36,246 Deputy Fire Chief (Prevention) 2.2% 97.8% $ 4,595 Fire Chief 2.2% 97.8% $ 5,474 Administrative Assistant Remainder 2.2% 97.8% $ 1,648 Subtotal Fire and Emergency Service Share 11.5% 88.5% $ 211,271 Legal Services Solicitor 2.0% 98.0% $ 2,713 Law Clerk Remainder 5.0% 95.0% $ 6,361 Subtotal Legal Service Share 3.5% 96.5% $ 9,074 Total Payroll - Building Code Activities $ 2,700,902 1. Based on salary shares of individual staff, which are not displayed in this report. Attachment 1 to Report FSD-006-24 TABLE 4 - PAGE 4 MUNICIPALITY OF CLARINGTON 2023 BUILDING PERMIT FEE UPDATE DIRECT COSTS - ADMINISTRATION AND ENFORCEMENT OF BUILDING CODE 1. ADMINISTRATION CENTRE Area Building Share Planning & Inf. Share Legal Share Area of Administration Centre (sq.m.) Area of Administration Centre (%) 135 5.5% 1,021 41.9% 43 1.8% Costs ($) Building Planning & Inf. Legal Total Share Share Share Share Annual Maintenance $ 28,468 $ 9,787 $ 313 $ 38,568 Capital Replacement (1) $ 72,641 $ 24,974 $ 799 $ 98,414 Total $ 101,109 $ 34,762 $ 1,112 $ 136,982 Note 1: Based on 50 year replacement schedule 2. BOWMANVILLE FIRE STATION Area Fire Prevention Area of Bowmanville Fire Station (sq.m.) Area of Bowmanville Fire Station (%) 104 10.2% Costs ($) Fire Prevention Share Office Supplies $ 117 Misc. Other Supplies $ 38 Heat $ 446 Hydro $ 1,407 Water/Sewer $ 211 Phone/Fax $ 215 R/M-Off Equip. $ 7 Building Capital Replacement $ 1,816 Total $4,257 Attachment 1 to Report FSD-006-24 1. OTHER CAPITAL COSTS All Departments Share Workstation Capital Replacement Vehicle Replacement (9) User Fee Review (based on 5 year renewal) $ 18,288 $ 40,660 $ 3,000 Total $ 61,948 2. OTHER OPERATING COSTS (2023 Budget) Planning & Development Share Legal Services Share Fire Prev. & Admin Share Total Share 4.5% 3.5% 11.5% Office Supplies $ 136 $ 69 $ 69 $ 4,975 Phone and Fax $ 125 $ - $ - $ 3,125 Consulting $ - $ - $ 115 $ 4,115 Professional Fees $ 3,452 - R/M Office Equipment $ - $ - $ - $ 500 Books and Periodicals $ 45 $ 86 $ 311 $ 8,443 Clothing and Uniforms $ 55 $ - $ 8,448 $ 18,253 Postage, Courier and Freight $ 18 $ - $ 231 $ 699 Printing $ - $ - $ - $ 185,500 Memberships and Association Dues $ 295 $ 259 $ 576 $ 12,880 Travel $ 477 $ 69 $ 231 $ 1,277 Public Education $ - $ - $ - $ 2,000 Misc. Expenses $ 109 $ 207 $ 922 $ 3,238 Small Equipment Purchases $ - $ - $ - $ 2,800 Furniture and Fixtures $ 227 $ - $ - $ 4,227 Promo/Other $ 91 $ - $ 2,766 $ 2,857 Other Capital (Non-TCA) $ - $ - $ 980 $ 980 Fuel/Gas/Vehicles $ - $ - $ - $ 4,200 Staff Development (1,2) $ 614 $ 69 $ 1,195 $ 16,878 Total $ 2,193 $ 4,211 $ 15,844 $ 276,946 Note 1: Incorporated from the Municpality's unclassified administration portion of the 2023 budget Note 2: Staff Development for Fire Prevention and Admin is based on payroll share of EMS Services Attachment 1 to Report FSD-006-24 The total direct cost of administering and enforcing the Building Code amounts to approximately $3.18 million in 2023 dollars. A summary of the breakdown of this cost is provided in Table 5 below. TABLE 5: SUMMARY OF DIRECT COSTS Payroll $2,700,900 Office Space $141,200 Other Operating and Capital Costs $338,900 Total Direct Costs $3,181,000 Note: Figures are rounded B. INDIRECT (OVERHEAD) COSTS The indirect cost of Building Code activities in Clarington represents the share of costs of the departments that can be reasonably be attributed as overhead support of Building Code services. The indirect costs were calculated based on what drives the cost of Services related activities. The total indirect costs amount to $409,100 and are based on Municipal budget documents. The indirect costs are calculated in two steps. First, shares of corporate costs are calculated for each department that provides support for Building Code services. These are gross budget share. Second, using these calculated corporate cost shares, the amount attributable to providing Building Code service support was estimated based on the time shares identified in Table 4. The corresponding cost share of corporate overhead for each department is therefore equal to: the share of the total corporate overhead attributable to each department, multiplied by the share of that departments time share committed to Building Code and related activities. Table 6 summarizes the calculation of corporate overhead support costs. The estimated cost shares are applied to each 2023 project net costs which excludes any costs for service areas which are clearly not attributable to its support of Building Code activities (e.g. election costs within the legislative services branch). The total corporate overhead support costs amount to $409,100. Attachment 1 to Report FSD-006-24 TABLE 6 MUNICIPALITY OF CLARINGTON 2023 BUILDING PERMIT FEE UPDATE CALCULATION OF INDIRECT (OVERHEAD) COSTS Net Costs (2023) Attributable Net Costs (2023) Building Share Cost 100.0% Planning & Infr. Share Cost 4.5% Fire Prev. and Admin Share Cost 11.5% Legal Share Cost 3.5% Total Indirect Cost Corporate Overhead $11,490,277 $11,490,277 $ 318,975 $318,975 $ 962,523 $43,755 $ 388,568 $44,783 $ 45,560 $1,573 $409,086 Analysis of Costs | 20 Attachment 1 to Report FSD-006-24 C. RESERVE FUND CONTRIBUTION The Act allows for the factoring of anticipated costs when determining the full cost of providing Building Code services. As previously mentioned, the Act does not require municipalities to adjust their fees every year in order to match their costs. As the majority of Building Code costs are payroll costs, it would be impractical to even attempt to match revenues and costs on an annual basis. Although building activity is expected to be relatively strong over the next five years, there may be fluctuations in both the number of permit applications and the amount of permit revenue from any one year to the next. This could result in an imbalance between costs and revenues. In years of high activity revenues will likely exceed costs. However, in quieter years, costs may well exceed revenues. The Municipality has in place a reserve fund for Building Code activities to manage permit revenue variation. The balance of the reserve fund was approximately $2,462,300 at the end of 2022. Given that the Municipality wishes to continue to manage fluctuations in permit revenue using a reserve fund, an annual contribution of $77,500 to the reserve fund has been incorporated into the permit fees. The target for the reserve fund has been set to the Municipality continue to review its reserve and reserve fund balances and polices at the next review. D. COST SUMMARY A summary of the analysis of costs is displayed in Table 7 below. It shows that the total cost of administering and enforcing the Building Code in the Municipality is $3,667,600 of which 86.7% are direct costs, 11.2% are indirect costs and 2.1% is made up of the reserve fund provision. TABLE 7: SUMMARY OF ALL COSTS Total Direct Costs $3,181,000 86.7% Total Indirect Costs $409,100 11.2% Reserve Fund Provision $77,500 2.1% Total Costs 3,667,600 100% Note: Figures are rounded Attachment 1 to Report FSD-006-24 5. CALCULATED FEES This section presents new full cost recovery building permit fees in light of the cost analysis presented in section 4. The full cost recovery analysis demonstrates that the Municipality is currently subsidizing the building permit review process through the tax rate. Given the legislation, Council has the authority to increase the current fees in order to recover the full cost of the process. Based on the estimated costs compared to the anticipated average fee revenue over the next five years, a fee increase of 8.99% is justified. A. FULL COST RECOVERY FEES The analysis shows that the projected annual cost of administering and enforcing the Building Code, and related Municipal Act fees under the authority of Building Services, in Clarington over the five year period from 2023 to 2027 amounts to $3.67 million. Under the existing fees, the average annual permit revenue during the same time period is anticipated to be $3.37 million. Therefore, a shortfall of approximately $0.30 million has been identified. As a result, an increase in the 2023 fees of 8.99% is the implied maximum justifiable amount under the Act that the permit fees can be increased. The calculation is shown below: Average Annual Costs (2023-2027) $3,667,645 Average Anticipated Annual Revenues (2023-2027)* $3,365,023 Difference 8.99% *based on current rates related categories, although some additional changes and new fees are proposed by the Municipality and included in the fee by-law. These one-off adjustments are nominal and considered in the revenues analysis conducted. A summary of the new fees which are proposed to be introduced in the updated by-law include: AGCO Agency Letter of Approval - $225 per letter Review of application for Environmental Compliance Approval for sewage works and completion of the "Statement of the Municipality"- $350 flat fee Letter to the Ministry of Education confirming conformance with the Ontario Building Code for Daycare Licenses - $225 per letter Table 8 provides an overview of the updated fees schedule accounting for the adjustments discussed. Lastly, it is also recommended that the BCA fees continue to be increased by a rate of 3% per year to account for effects of inflation moving forward. Attachment 1 to Report FSD-006-24 Item Classes of Permits Current Fees Full Cost Recovery Fees Fee Rate Basis of Fee Fee Rate Basis of Fee Classes of Permits and Fees Payable 1 Building Permit $ 117.02 see Schedule B - Part B see Schedule B - Part B 2 Demolition Permit Other Residential Structures $119.41 $ 0.30 flat fee for SDU & res accessory buildings per sq.m. $ 130.14 $ 0.33 flat fee for SDU & res accessory buildings 3 Conditional Building Permit Minimum Maximum $ 235.42 $ 1,177.10 110% of fee for proposed construction plus: additional fee additional fee $ 353.05 - 120% of fee for proposed construction plus: additional fee additional fee 4 Permit for Stage of Construction (Partial Permit) $ 353.03 additional fee for each phase; plus construction fee - additional fee for each phase equal to 10% of building permit fee (min of $353.03) 5 Change of Use Permit $ 117.67 for each 100 sq.m.of floor area or part thereof $ 128.26 for each 100 sq.m.of floor area or part thereof 6 Occupancy Permit for Unfinished Building $ 237.62 flat fee $ 258.99 flat fee Other 1 Alternative Solution Examination Fee $ 157.42 per hour; minimum one hour; plus applicable building permit fee $ 171.58 per hour; minimum one hour; plus applicable building permit fee 2 Resubmission of application found to be incomplete 25% of application fee 25% of application fee 3 Revision to permit $ 157.42 per hour; minimum 1 hour for house, 4 hours for other buildings) $ 171.58 per hour; minimum 1 hour for house, 4 hours for other buildings) 4 Transfer to permit $ 177.91 flat fee $ 193.91 flat fee 5 Re-examination - Change in house model $ 711.13 plus fee prescribed in part B for any extra area $ 775.08 plus fee prescribed in part B for any extra area 6 Re-examination - other than 5 10% of applicable permit fee to a max of $1674.32 25% of applicable permit fee, min. of $1674.32 7 Additional Inspection $ 177.91 flat fee $ 193.91 flat fee 8 Overtime Fee $ 177.65 per hour; minimum 3 hours $ 193.63 per hour; minimum 3 hours 9 Permit Surcharge - fee is the greater of: (i) surcharge of 25% of permit fee when construction has begun & building permit app has been received (ii) surcharge of 50% of permit fee when construction has begun & no building pemit app has been received - fee is the greater of: (i) surcharge of 25% of permit fee when construction has begun & building permit app has been received (ii) surcharge of 50% of permit fee when construction has begun & no building pemit app has been received 10 Dormant Building Permit File Reactivation Fee $ 238.81 flat fee $ 260.29 flat fee Attachment 1 to Report FSD-006-24 Item Classes of Permits Current Fees Fee Rate Basis of Fee Fees Payable for Building Permits 1 Group A: Assembly Occupancies All Recreational Facilities, Schools, Libraries, Places of Worships, $ 28.08 per sq.m. Restaurants (Finished), Theatres, Arenas/Gymnasiums/Pools Restaurant (Shell) $ 22.75 per sq.m. Open Public Swimming Pools $ 7.59 per sq.m. Transit Stations, Subways, Bus Terminals $ 21.08 per sq.m. All Other Group A Buildings $ 28.08 per sq.m. 2 Group B: Institutional Occupancies Institutional, Hospitals, Nursing Homes, and other Group B Buildings $ 30.65 per sq.m. 3 Group C: Residential Occupancies Single Family Dwellings, Semis, Townhouses, Duplexes, Live/Work Units All other multiple unit buildings and other residential occupancies Motels above two stories and Hotels $ 15.33 $ 16.35 $ 23.38 per sq.m. per sq.m. per sq.m. 4 Group D: Business and Personal Service Occupancies Office Buildings (Shell), all other Group D Buildings (Shell) Office Buildings (Finished), Banks, Medical Clinics, Fire Halls, and all other Group D Buildings (Finished) $ 18.64 $ 23.25 per sq.m. per sq.m. 5 Group E: Mercantile Occupancies Mercantile Occupancies, Retail Stores (Shell) Retail Stores (Finished), Department Stores, Supermarkets All Other Group E Buildings (Finished) $ 15.06 $ 19.92 $ 19.92 per sq.m. per sq.m. per sq.m. 6 Group F: Industrial Occupancies Industrial Buildings (Shell) Industrial Buildings (Partitioned Area) Gas stations, Car Washes Parking Garages (U/G, Open Air) Open Mezzanine Construction $ 11.76 $ 16.35 $ 14.81 $ 7.15 $ 7.12 per sq.m. per sq.m. per sq.m. per sq.m. per sq.m. 7 Interior Alterations (Partitions, Finishings, etc.) Group A, B, and D Group C, E, and F Apartment In-House $ 5.35 $ 4.74 $ 5.78 per sq.m. per sq.m. per sq.m. 8 Designated Structures Communication Tower or Transmission Towers on Building Crane Runway Exterior Tank and Support Pedestrian Bridge Retaining Wall Satellite Dish Solar Collector for SDU Solar Collector for all other occupancies Wind turbine $ 569.56 $ 569.56 $ 237.62 $ 237.62 $ 11.77 $ 143.29 $ 143.29 $ 142.99 $ - flat fee flat fee flat fee flat fee per l.m. flat fee flat fee per 10 panels (max $8372) See item 11 Schedule B - Part B Full Cost Recovery Fees Fee Basis Rate of Fee $ 30.61 per sq.m. $ 24.79 per sq.m. $ 8.28 per sq.m. $ 22.97 per sq.m. $ 30.61 per sq.m. $ 33.41 per sq.m. $ 16.71 per sq.m. $ 17.82 per sq.m. $ 25.48 per sq.m. $ 20.32 per sq.m. $ 25.34 per sq.m. $ 16.41 per sq.m. $ 21.71 per sq.m. $ 21.71 per sq.m. $ 12.82 per sq.m. $ 17.82 per sq.m. $ 16.14 per sq.m. $ 7.80 per sq.m. $ 7.76 per sq.m. $ 5.83 per sq.m. $ 5.17 per sq.m. $ 6.30 per sq.m. $ 620.78 flat fee $ 620.78 flat fee $ 258.99 flat fee $ 258.99 flat fee $ 12.83 per l.m. $ 156.17 flat fee $ 156.17 flat fee $ 155.85 per 10 panels (max $9996) $ - See item 11 Schedule B - Part B Attachment 1 to Report FSD-006-24 TABLE 8 - PAGE 3 MUNICIPALITY OF CLARINGTON FULL COST RECOVERY BUILDING PERMIT FEES Item 9 10 11 Classes of Permits Current Fees Full Cost Recovery Fees Fee Rate Basis of Fee Fee Rate Basis of Fee Stand Alone & Miscellaneous Work a) Permanent Tent, Air Supported Structures b) Balcony Guards (Replacements) c) Unfinished Basement (to accommodate a building moved from elsewhere) d) Repair or Re-Cladding of wall (per wall area) e) Canopy without enclosure f) Ceilings (Added or Replacement) g) Demising walls (no other construction) h) Electromagnetic Locks i) Emergency Lighting j) Farm Buildings k) Fire Alarms/ Fire Code Retrofit l) Fire Door Retrofit m) Fireplaces, Woodstoves n) Sprinkler Systems - new or alternations o) Repair to Parking Garage p) Portable Classroms i) portopack q) Residential Decks, Porches, Balconies r) Residential Detach or Attached Garages or Accessory Structure s) Temporary Structures i) Tent ii) Trailers and Temporary Buildings iii) Sales Pavillions (Construction on Site) t) Underpinning u) Shoring u) Window or door replacements (excluding house) v) Sign (3.15 of OBC only) Stand Alone Mechanical Work (HVAC & Plumbing) 1) Permit for Heating, Ventilating, and A/C (HVAC) a) SDD Type Residential Buildings (HVAC) i) Single Detached Dwelling, Semi-Detached, Duplexes, & Townhouses (with or without A/C) b) All Other Group C - Residential Buildings (HVAC) i) Apartments, Hotels, etc. c) Groups E & F - Retail/Industrial (HVAC) i) Small (up to 2500 sq. ft.) ii) All others (>2500 sq. ft.) d) Group A, B, and D (HVAC) i) Assembly, Institutions, Restaurants, and Office Buildings e) Minor Alterations - All Buildings i) Ductwork only or A/C unit addition ii) Add on systems, Space Heater, Make-Up Air Unit, Exhaust Fan f) Special Ventilation Systems i) Commercial Kitchen Exhaust, Spray Booth, Dust Collector, etc. g) Furnace Replacement i) SDD Type Residential, Buildings h) Geothermal system or earth energy system 2) Permit for Plumbing and Drains a) Single Family Dwellings b) Groups A, C, E, and F c) Groups B and D d) Backflow Preventor e) Manhole, Catch Basin, Interceptor, Sump, etc. 3) Piping a) Single Family Detached or Attached Dwellings i) Water Services, Sanitary, and Storm Buried Piping ii) Repairs, Replacement, and Additions of buried plumbing and drainage piping, pooling drains b) All Other Buildings i) Inside Sanitary and Storm Piping i) Outside Water Services, Sanitary and Storm Piping Alterations, buildings and structures not provided for in Items 1 to 10 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $12.27 3.74 7.12 0.45 5.93 0.76 5.61 85.73 82.38 3.82 237.62 47.08 118.21 0.70 3.06 474.04 19.92 143.29 5.09 142.90 237.62 13.03 11.25 11.25 5.70 237.62 284.18 1.03 284.18 1.28 1.78 167.17 237.62 284.18 167.17 124.00 20.18 25.22 25.22 47.08 33.62 143.29 143.29 2.32 3.88 20.18 per sq.m. per l.m. per sq.m. per sq.m. per sq.m. per sq.m. per l.m. per lock (max $713) per storey per sq.m. (max $8373) flat fee per door each per sq.m. per sq.m. flat fee per sq.m. flat fee per sq.m. up to 2 tents flat fee per sq.m. per l.m. per l.m. per window flat fee flat fee per sq.m. flat fee per sq.m. per sq.m. flat fee flat fee flat fee flat fee flat fee per fixture per fixture per fixture each each flat fee flat fee per l.m. per l.m. for each $1,000 of construction value or part thereof $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 13.38 4.07 7.76 0.49 6.47 0.83 6.12 93.44 89.79 4.16 258.99 51.32 128.84 0.77 3.33 516.67 21.71 156.17 5.54 - 155.76 258.99 14.20 12.26 12.26 6.21 258.99 309.74 1.12 309.74 1.39 1.94 182.20 258.99 309.74 182.20 135.15 21.99 27.49 27.49 51.32 36.65 156.17 156.17 2.52 4.23 - 21.99 per sq.m. per l.m. per sq.m. per sq.m. per sq.m. per sq.m. per l.m. per lock (max $851) per storey per sq.m. (max $9998) flat fee per door each per sq.m. per sq.m. flat fee per sq.m. flat fee per sq.m. up to 2 tents flat fee per sq.m. per l.m. per l.m. per window flat fee flat fee per sq.m. flat fee per sq.m. per sq.m. flat fee flat fee flat fee flat fee flat fee per fixture per fixture per fixture each each flat fee flat fee per l.m. per l.m. for each $1,000 of construction value or part thereof Attachment 1 to Report FSD-006-24 B. PERMIT FEE COMPARISONS In order to provide an understanding of the current and full cost recovery fee rates in Clarington in relation to similar and surrounding municipalities, a building permit fee comparison was prepared. The results of this comparison are presented in Table 9. The rates for the other municipalities are those that are currently in force. Table 9 shows that the current building permit fees in Clarington are generally on the higher end compared to its municipal comparators. The full cost fee rates for residential, - end of this range. Note that this comparison does not take into account any service level differences that may exist in terms of, for example, the time taken to process a permit. Attachment 1 to Report FSD-006-24 TABLE 9 MUNICIPALITY OF CLARINGTON 2023 BUILDING PERMIT FEE UPDATE MUNCIPAL COMPARISONS - BUILDING PERMIT FEES Municipality Current Fee Rate ($ per square foot) Single Dwelling One Storey Plaza Shell Multi Storey Office Shell Industrial Warehouse - Shell York Region Vaughan $ 1.86 $ 1.29 $ 1.50 $ 0.83 Markham $ 1.83 $ 1.31 $ 1.56 $ 1.01 Georgina $ 1.80 $ 1.28 $ 1.28 $ 1.21 Aurora $ 1.70 $ 1.28 $ 1.28 $ 0.86 Whitchurch-Stoufville $ 1.69 $ 1.35 $ 1.35 $ 1.23 King $ 1.68 $ 1.12 $ 1.12 $ 0.84 Richmond Hill $ 1.64 $ 1.38 $ 1.48 $ 0.95 East Gwillimbury $ 1.45 $ 0.85 $ 0.85 $ 0.70 Newmarket $ 1.48 $ 0.97 $ 1.05 $ 0.79 Durham Region Whitby $ 1.90 $ 2.36 $ 2.16 $ 1.48 Pickering $ 1.43 $ 1.43 $ 1.77 $ 1.07 Oshawa $ 1.41 $ 1.29 $ 1.42 $ 1.36 Ajax $ 1.26 $ 0.93 $ 0.93 $ 0.65 Scugog $ 1.40 $ 1.40 $ 1.40 $ 0.85 Uxbridge $ 1.09 $ 0.98 $ 0.98 $ 0.67 Brock $ 1.05 $ 0.98 $ 0.98 $ 0.75 Simcoe County Innisfil $ 1.88 $ 1.29 $ 1.29 $ 0.86 Barrie $ 1.52 $ 1.63 $ 1.40 $ 1.12 Bradford West Gwillimbury $ 1.66 $ 1.22 $ 1.27 $ 1.06 Orillia $ 1.53 $ 1.27 $ 1.23 $ 0.59 Springwater $ 1.33 $ 1.30 $ 1.30 $ 0.61 Municipal Average $ 1.55 $ 1.28 $ 1.31 $ 0.93 Clarington - Current Rates $ 1.43 $ 1.40 $ 1.74 $ 1.10 Clarington - Calculated 2023 $ 1.56 $ 1.53 $ 1.89 $ 1.19 Note 1: Rate comparison as of August 1, 2023. Note 2: King Township rate reflects $/sq.ft of building a 2,500 sq.ft house Note 3: Mid-point of range of fees illustrated for industrial permits where applicable Attachment 1 to Report FSD-006-24