11. CAPITAL FUNDING SUPPORT - THE OTTAWA HOSPITAL - GENERAL, RIVERSIDE
AND CIVIC CAMPUSES
|
That
Council approve that the Ottawa Hospital be remitted $150,145.76, the amount
being equivalent to the permit fees paid in 2005 to the City for construction
projects undertaken by the Ottawa Hospital at the General, Riverside and Civic
Campuses pursuant to the hospital’s approved 10 Year Capital Program as noted
in Schedule A to this report.
Que le Conseil remet à
L'Hôpital d'Ottawa la somme de 150 145,76 $, qui correspond aux droits
d'obtention de permis versés à la Ville en 2005 pour les projets de
construction que L'Hôpital d'Ottawa a entrepris aux campus Général, Riverside
et Civic, conformément au programme décennal approuvé d'immobilisations dont il
est question à l'annexe A du présent rapport.
1. Planning
and Growth Management, Deputy City Manager’s report dated
16 March 2006
(ACS2006-PGM-BLD-0008).
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
16 March 2006 / le 16 mars 2006
Submitted by/Soumis par : Ned Lathrop, Deputy City Manager/Directeur
municipal adjoint,
Planning and Growth Management/Urbanisme et Gestion de la croissance
Contact
Person/Personne ressource : Arlene Grégoire, Director
Building Services and Chief Building
Official/Direction des services du bâtiment et Chef du service du bâtiment
(613) 580-2424 41425,
arlene.gregoire@ottawa.ca
REPORT RECOMMENDATION
That the Corporate Services and Economic Development Committee recommend Council approve that the Ottawa Hospital be remitted $150,145.76, the amount being equivalent to the permit fees paid in 2005 to the City for construction projects undertaken by the Ottawa Hospital at the General, Riverside and Civic Campuses pursuant to the hospital’s approved 10 Year Capital Program as noted in Schedule A to this report.
RECOMMANDATION DU
RAPPORT
Que le Comité des services organisationnels et
du développement économique recommande au Conseil de remettre à L'Hôpital
d'Ottawa la somme de 150 145,76 $, qui correspond aux droits d'obtention de
permis versés à la Ville en 2005 pour les projets de construction que L'Hôpital
d'Ottawa a entrepris aux campus Général, Riverside et Civic, conformément au
programme décennal approuvé d'immobilisations dont il est question à l'annexe A
du présent rapport.
BACKGROUND
At the City Council meeting of 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;
Attached as Document 1 is a copy of the request for reimbursement by the Ottawa Hospital, General, Riverside and Civic campuses of fees for the construction projects undertaken pursuant to their 10 Year Capital Funding Program. Review of the request for reimbursement from hospitals was undertaken in accordance with the criteria established January 23, 2002.
On July 1, 2005, new legislation, the Building Code Statute Law Amendment Act, 2002 and Ontario Regulation 305/03 took effect, which necessitated changes on how the municipality administered and enforced the Ontario Building Code Act and Building Code.
One of the changes related to the collection of building permit fees, in that these fees could cover only those costs associated with servicing building permits and enforcing the Act and Code. In essence, the new legislation required the building regulatory activities be revenue neutral. Thus, surplus revenues no longer could be generated, nor relied upon for offsetting the waiver of fees in support of construction of charitable and non-profit housing, nor in support of construction of buildings/structures required and regulated under the Nutrient Management Act, nor for reimbursements of fees to the Ottawa hospitals in support of their 10 Year Capital Funding Program. This impact was discussed in the report presented to Council on June 22, 2005 entitled “Building Regulatory Changes – Impact of Building Code Statute Law Amendment Act and Ontario Regulation 305/05” (ACS2005-PGM-BLD-0010).
As a consequence, a new funding source must be identified for reimbursing the hospitals on a case-by-case basis. If Council wishes to continue to support Ottawa’s hospitals it is necessary to offset building permit fees from the City-Wide Capital Reserve Fund.
To date, City Council has reimbursed to the Ottawa hospitals $5,192,526.32 in building permit and planning approval fees to meet the challenge of raising $232 million locally in support of the capital requirements of the local hospitals.
CONSULTATION
The Ottawa Hospital has been consulted and a copy of this report has been forwarded to the Ottawa Hospital for review and information.
FINANCIAL IMPLICATIONS
As previously mentioned, with the implementation of the Building Code Statute Law Amendment Act and Ontario Regulation 305/03, the Building Services Branch can only utilize building permit revenues to offset direct and indirect costs associated with servicing the building permits and enforcing the Ontario Building Code Act. Therefore, a new source of funding is required to allow for building permit fee relief for hospital construction projects.
For 2006, there is no current budget identified to
fund this initiative. Subject to
Council approval, one time funding from the City Wide Capital Reserve Fund is
recommended to address this requirement in 2006. As part of the 2007 budget, the Planning and Growth Management
Department will bring forward a budget pressure identifying the funding
requirement.
The tax increase forecast for 2007 as presented in the
2006 Draft Budget Summary document was projected to be 8.1%. All additional requirements approved by
Council that have a 2007 budget implication will be summarized and presented in
the City’s quarterly status reports.
SUPPORTING DOCUMENTATION
Document
1 – Letter from the Ottawa Hospital and Schedule A
DISPOSITION
The
Planning and Growth Management Department to process the remittance request.
Corporate
Services Department, Financial Services to prepare the payment to the Ottawa
Hospital and adjust accounts accordingly.
LETTER FROM THE OTTAWA HOSPITAL AND SCHEDULE A DOCUMENT 1