11.    CAPITAL FUNDING SUPPORT - THE OTTAWA HOSPITAL - GENERAL, RIVERSIDE AND CIVIC CAMPUSES


AIDE AU FINANCEMENT DES IMMOBILISATIONS - L'HÔPITAL D'OTTAWA - CAMPUS GÉNÉRAL, RIVERSIDE ET CIVIC

 

 

COMMITTEE RECOMMENDATION

 

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.

 

 

RECOMMENDATION DU COMITÉ

 

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.

 

 

 

 

 

 

 

 

 

 

DOCUMENTATION

 

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

 

City-wide

Ref N°: ACS2006-PGM-BLD-0008

 

 

SUBJECT:

CAPITAL FUNDING SUPPORT - THE OTTAWA HOSPITAL - GENERAL, RIVERSIDE AND CIVIC CAMPUSES

 

 

OBJET :

AIDE AU FINANCEMENT DES IMMOBILISATIONS - L'HÔPITAL D'OTTAWA - CAMPUS GÉNÉRAL, RIVERSIDE ET CIVIC

 

 

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