Corporate Report. Code Reserve Fund for 2017 and Request for Building Inspector Staff

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1 Corporate Report Report from Planning and Building Services, Building and Development Date of Report: March 1, 2018 Date of Meeting: March 26, 2018 Report Number: PBS File: Subject: Building Services Annual Report on Revenues, Expenses and Building Code Reserve Fund for 2017 and Request for Building Inspector Staff Recommendation That Council receive for information the Building Services Annual Report on Revenues, Expenses and the Building Code Reserve Fund for 2017; and That Council refer to the Budget Standing Committee on April 16, 2018 the requested two additional building inspector positions to be funded through the Building Code Reserve Fund for 2018 and 2019, and 50% of the cost of these positions be funded from the Building Code Reserve Fund in 2020, and be added to the Operating Budget in 2021; and Further, that Council refer the proposed 1.9% increase in building fees to the Budget Standing Committee for consideration of the Rates and Fees By-law review for FORTHWITH Summary Section 7(4) of the Building Code Act, 1992, as amended, requires that municipalities prepare an annual report on the total building permit fees collected, the direct and indirect costs of delivering services related to the administration and enforcement of the Building Code Act and the balance in the Building Code Reserve. The Building Code Act (BCA) provides municipalities with the authority to collect fees to recover the cost of administration and enforcement of the Act and the Ontario Building Code (OBC). Article of Division C outlines the details of what can be included as part of the cost including direct and indirect costs, and provisions for a reserve fund. The Act also states under Section 7(2) that the fees must not exceed the anticipated reasonable costs to administer and enforce the Act. Therefore, any excess revenue must be transferred to the Building Code Reserve Fund. The purpose of the Building Code Reserve Fund is to support the building permit program during periods of decline. The Building Division of Planning and Building Services has attempted to balance the revenues received through permits fees with the anticipated costs of administering and enforcing the Act. Report Page 1 of 12

2 It is necessary to develop a supporting reserve fund policy to assist in mitigating risks associated with economic downturns, achieving compliance and other potential issues. Prior to 2006, building revenue surpluses could be used corporately. With the legislation that was introduced in 2006, any surpluses now must be transferred to a reserve and used for administering and enforcing functions related to the Building Code Act and Building Code regulations. A stabilization reserve manages the risk associated with the economic downturn and is also available to fund one-time capital requirements to avoid fluctuations in fees. Based on legislation, this reserve fund cannot be used for any other City purpose. It is a segregated fund specifically established for the Building Division cost recovery. This is to ensure that the taxpayer is not left to pay for any deficits that should be borne by the building industry. The costs associated with the operations of the Building Services Division are considered to be fixed costs that cannot be easily or immediately adjusted to the changes in the levels of construction activity. There is expected to be some level of fluctuation of work load from one year to another; however, the BCA / OBC enforcement staff are highly technical and must attain extensive training to meet qualifications required by legislation. Although a municipality can rely on property tax revenues to supplement BCA enforcement, most municipalities try to ensure that fees are adequate to recover the costs associated with the administration and enforcement of the BCA as well as reasonable contributions to a reserve fund that can be used to offset lean years, implement service enhancements and to cover unexpected expenses related to the administration and enforcement of the BCA. The legislation requires that municipalities report on any reserve funds and the amount of that fund that have been established for any purpose relating to the administration and enforcement of the Act and its related regulations. Appendix 1 is a summary of revenues and costs, in accordance with subsection 7(4) of the BCA. Pursuant to Section of Division C Part 1 of the OBC, this summary contains information in respect to fees authorized under clause 7(1)(c) of the BCA which includes both direct and indirect costs of delivering these services. Report In reviewing Appendix 1, the Building Services Section has managed a very high volume year resulting in revenues being available to be transferred to the Building Reserve. Revenues have increased by 30% ($586,699) from 2016 ($1,950,242) to 2017 ($2,536,941). The direct and indirect costs have also increased by 1% ($17,255) from 2016 ($1,833,060) to 2017 ($1,850,351). Although the expenses have remained relatively constant, the Building Services team has endured significant staffing challenges with expenses not solely based on salaries. During the past two years there has been one revolving vacancy (where one vacancy Report Page 2 of 12

3 was filled, another one developed). Additional to the staffing salaries, the following expenses were also incurred: $65,315 in overtime pay and contract positions (equivalent of one full time employee (FTE) basic salary - no benefits) $31,000 for mobiinspect software (this is a five-year contractual commitment) $13,177 in training costs because of staff turnover ($4,800 was budgeted) 100% of fire prevention time for permit review and inspection charged to the FEMS budget (fire prevention staff are paid at a much higher rate (including benefits) than building inspectors $133,310 versus $91,161) Every year staffing costs increase with pay increases that have been negotiated for union staff. It is not known what these increases will be as the current contract expires at the end of A minimal increase in the fees at 1.9% to align with anticipated salary increases is recommended since the majority of the cost to run the Building Division is salary based. Once electronic plan review and the mobile inspection application are fully operationalized, some additional expenses will be required to allow for improved efficiencies and communication in the field. The total number of permits has increased 14% from 1,151 in 2016 to 1,310 in 2017, while the estimated value of construction has increased by 31% from $149 million in 2016 to $195 million in 2017, and the number of new dwelling units has increased by 50% from 383 in 2016 to 569 in The City of St. Catharines has experienced a successful year in construction while the Building Services team that supports this construction has been struggling with staffing shortages because of recruitment and retention challenges. Staffing: Building Services has faced significant staffing challenges since 2016 with some planned and unplanned retirements and staff turn-over. Over the past few years there has been a growing trend where the demand for Building Officials has exceeded the supply. This situation is referred to by the Ontario Building Official Association (OBOA) as the Silver Tsunami. Building Departments across Ontario have entered what will be a very difficult decade, as retirement profiles collide with growing business recruitment needs. Many municipalities are looking for qualified Building Officials: the demand vastly exceeds the supply. The nature and scope of what a Building Official needs to do or know are everexpanding, as building code regulations increase and change and applicable law expands. Technical educational programs at colleges and universities provide a basic technical knowledge of building and construction theory. The training and development of a Building Official is in addition to the basic knowledge learned in a college or university program. It is a municipal responsibility to develop qualified and competent Building Officials through training courses, exams and on the job practical experience. St. Catharines Building Services has recruited new staff over the past couple of years and have invested considerable funds to train them. It is necessary to continue this investment to maintain qualified staff and ensure succession planning strategies are in Report Page 3 of 12

4 place by developing both new and existing staff. Building Officials are highly trained staff and not easily replaced. There has been a revolving vacancy since 2016, but as of August 14, 2017, there has been one vacancy that, although recruitment efforts have been made to fill this vacancy on three separate occasions, a qualified Building Official has not been retained. Other municipalities such as Hamilton are recruiting at the same time and now there is greater challenge to retaining staff given the existing pay scale for St. Catharines verses elsewhere who offer more money for the same or less responsibility. Hamilton offers a $10,000 to $15,000 higher wage range than St. Catharines. Municipalities are recruiting staff from one another, and those who pay more are more successful. St. Catharines is no longer competing only within the Niagara Region for the recruitment of qualified staff since demand is now reaching as far as Hamilton, Burlington and Oakville. Some municipalities such as Kingston have implemented a market adjustment in order to offer higher salaries because of the scarcity of Building Officials. Other municipalities such as Hamilton are proactively recruiting for future vacancies 6 months ahead of vacancies actually occurring. In St. Catharines, with the increase in construction activity, there is a need for an additional FTE. Also, with the intent of Fire Prevention Services to transfer the Schedule B responsibility identified in the Building By-law (attached as Appendix 7) to Building Services staff later this year, another additional Building Services FTE will also be required. This equates to two additional FTEs in addition to the existing vacancy. To attract desired talent, and retain qualified staff it is imperative that compensation rates for building inspectors be examined so that St. Catharines is on par with the municipalities with whom the City is competing. Reserve: The Building Code Act makes provision for the difference between revenues and costs to be placed in a reserve, which in the case of St. Catharines, existed but was depleted in previous years. However, this is the second year that funds are able to be transferred to the Building Code Reserve Fund. This year $686,626 has been transferred to the Fund for a total balance of $845,400. Many municipalities have a strategy for establishing, maintaining and managing a Building Code Reserve Fund to sustain service levels and service delivery which includes a target of a minimum of 1.5 times the annual operating budget to a maximum of three times the operating budget. In past years, St. Catharines strategy has been focused on trying to achieve a cost neutral target to remove the deficit. Fortunately, over the past two years, there has been the opportunity to replenish the reserve fund for future years. Any costs not covered by this reserve must be subsidized by the general tax levy. The City s Financial Management Services has estimated the range of core inflation to be 1.3% to 1.8%. It is recommended to continue to increase the fees by 1.9% in 2018 to cover increases in wages and to continue to replenish the reserve fund for future years. Report Page 4 of 12

5 This increase should be implemented when the Rates and Fees By-law is reviewed in the summer of Fees: Sub-section 7(6) of the BCA addresses Changes in Fees and states that if a principal authority proposes to change any fee, it shall give notice of the proposed changes in fees and hold a public meeting concerning the proposed changes. The regulations require municipalities to hold at least one public meeting and that at least 21 days notice be provided via regular mail to all interested parties. The regulations also require that such notice include, or be made available upon request to the public, an estimate of the costs of administering and enforcing the Act, the amount of the fee or change in existing fee and the rationale for imposing or changing the fee. Establishing optimal permit fees is a dynamic process. Every year the Chief Building Official analyzes the revenues and costs, service levels and staffing requirements to further improve the efficiency and effectiveness of Building Services operations. The increases since 2014 are shown in Table 1. TABLE 1 Permit Fee Increases ($/square foot) GROUP Proposed 2019 A Restaurant B Institutional C Residential D Offices E Retail F Industrial In comparison to other local municipalities, it must be remembered that St. Catharines is the largest municipality in the Niagara Region. Most Niagara Region municipalities have a population of less than 50,000 and so the operation of the building department is different in terms of volume and sometimes complexity of permit review. For this reason, a comparison of other municipalities of a similar size is helpful in analyzing permit and staffing requirements, and therefore revenues and expenses associated with operations. Appendix 2 shows the comparison of fees with other municipalities that Council has approved as comparators. It is noted that Kingston and Thunder Bay have a different fee structure that is based on construction value rather than dollars per area of construction. For this reason Peterborough and Sault Ste. Marie were added as comparators since they are considered similar to Kingston and Thunder Bay but use the dollars per area fee approach. From the chart in Appendix 2, it is apparent that the fees in St. Catharines are comparable but below the average except for Group F Industrial Building with those in comparable municipalities. Report Page 5 of 12

6 Construction Activity: Construction activity in St. Catharines has significantly increased in the past couple of years. In fact, in the Mayor s State of the City presentation on January 30, 2018, Mayor Sendzik announced that the National Bank of Canada ranked Niagara s economy as the second strongest in the country (Hamilton in top spot). This is exciting for the City, excellent news for the building industry and huge challenge for the Building Services Team. A total of 1,379 permit applications were received with 1,310 permits issued in 2017, including the creation of 569 new housing units. For 2017, the estimated value of construction for permits issued was $195,570,292. Appendix 3 is a summary of the estimated value of construction for major building projects in There were five top projects in 2017 all with an estimated value of construction (EVC) over $10 million. There were an additional 10 projects with estimated values of construction between $2 - $8.6 million, 21 projects were between $1-2 million, 31 projects were between $500,000 - $1 million, and 25 projects were between $250,000 - $500,000. These projects amount to $129,125,600 in construction value. The remaining projects (approximately 1,200 in number) with a total sum in construction value of $66,444,692 were each less than $250,000 in construction value. These smaller projects are typically completed by smaller constructors who need more guidance and staff time to educate and ensure the work is completed in accordance with the minimum requirements of the Building Code. Top Ten Projects in 2017 The following is a list of the top ten building permits issued in 2017 according to Construction Value. ADDRESS PROJECT DESCRIPTION ESTIMATED CONSTRUCTION VALUE 1812 Sir Isaac Brock Construct a 2 Storey Addition and Alter Interior of Schmon $14,000,000 Way Tower and Thistle Building Brock University 582 Ontario Street Construct a 4-Storey Addition to Royal Henley Retirement $13,000,000 Residence 1128 Vansickle Construct a new 6-storey Group B3 (Care Occupancy) $10,800,000 Road North Addition to Existing 3-storey Group C (Residential) Building 527 Carlton Street Construct a Five Storey Apartment Building for Niagara $10,684,000 Regional Housing (excluding structural shell and foundation) 212 Lakeport Road Construct a new 45-Unit Condominium Apartment Building $10,000,000 Report Page 6 of 12

7 30 Power Glen Construct a New Townhouse Development - 8 Blocks 28 $8,616,000 Units 383 Lake Street Alter Interior and Construct an Addition to Lake Street $4,000,000 Service Centre 535 Lake Street Mechanical Upgrades Heating System Replacement $4,000, Canterbury Drive Construct a New Townhouse Development - 4 Blocks 22 Units Manhattan Court Construct a New Townhouse Development - 5 Blocks 27 Units $3,850,000 $3,732,000 Appendix 4 contains tables and charts showing comparative construction activity data over a period of three to five years. It is important to examine these metrics in context. Large projects take more than one year to complete, and building staff are involved with the project from application to inspection to occupancy of the building. The economy has an effect on the type of construction that occurs. It can be seen that the number of permits has increased 14% from 2016 to The majority of construction activity is residential with medium density residential construction increasing the number of new dwelling units by 50% from 383 in 2016 to 569 in Revenues have increased along with a higher demand of building staff time for review and inspections. Staff received over 1,200 permits of smaller size, $120 to $250,000 in estimated value of construction in Each one of these applications require individual review and inspection throughout the City. Staff are also responding to building code complaints for unsafe conditions including fires, construction without permits, deteriorating buildings and structures, and vehicle collisions through buildings Forecast It is anticipated that 2018 will again be a very active year for building permits. As with previous years, there appears to be predominantly residential construction with some commercial construction. It is estimated that the total construction value for permits to be issued in 2018 will be over $130 million. Since larger projects tend to run over multiple years, a three-year average for construction value is helpful in determining trends (Appendix 5). The construction value ranges from a low of $ million in 2013 to a high of $ million in 2015 with three-year average for 2017 of $153.1 million. Additional forecasting for 2019 and beyond, based on planning applications received to date, can be found in Appendix 6. Report Page 7 of 12

8 The following is a list of large anticipated construction projects (over $1 million in construction value) that will likely receive permits in ADDRESS PROJECT DESCRIPTION ESTIMATED CONSTRUCTION VALUE 155 Ontario Street Seasons $30,531, Dorchester Boulevard Condominiums $24,155, South 111 Church Street Apartment building $21,657, A Village Road Condominium Apartments $19,000, Lakeport Rd. 60 res units, 5 comm units $18,573, & 24 Grapeview Drive 16 unit condo + 3 towns $14,708, Glendale Avenue Walmart Expansion $14,009, Welland Avenue NRPS detachment $10,080, Dalhousie Avenue The beaches at Port Dalhousie $9,030, A Martindale Road Townhouses $3,600, Hannover Drive Commercial Office Building $2,944, South Drive Convert school to RES, construct 2 $2,538, townhomes 1 Dexter Street Townhouse $2,131, East Street Townhouse $1,344, Head Street 6 Unit apartment building $1,103, TOTAL ESTIMATED VALUE OF CONSTRUCTION FOR 2018 $175,409, TOTAL ESTIMATED NEW DWELLING UNITS FOR Building and Fire Services: Building and Fire Services staff have been reviewing the areas of responsibility in an attempt to streamline processes and improve efficiency between the two departments. The Building By-law (attached as Appendix 7) states that the Chief Building Official (CBO) may delegate to the Fire Chief or his/her designate, responsibility for the review of plans and specifications, and field inspections of the systems detailed in Schedule B attached to the By-law (included as Appendix 7). The systems identified in Schedule B to the Building By-law are being reviewed so that a transition plan can be implemented for Building Services to take on these areas of responsibility from Fire Services. Some areas will be able to be transitioned sooner than others depending upon training and experience required in reviewing and inspecting these systems. Report Page 8 of 12

9 Building Service Staff (Building, Plumbing and HVAC Inspectors) will have to take on additional responsibilities to complete the inspections normally tasked to Fire Prevention Services. For Building Services, this work will require significant additional training, add to the workload, and increase time constraints and responsibility. An additional FTE in the Building Services Division will be necessary to accommodate this transfer of responsibilities. Timelines: Legislation requires that permit applications be reviewed within specific time periods and either the permit be issued or reasons be provided explaining why the permit cannot be issued. The following table summarizes the percentage of applications received that were deemed to be complete applications and the time it took for staff to review these applications for issuance (the number is the median ). Year % Complete Applications Required Median days: houses (10) Required Median days: Small Bldgs (15) Required Median days: Large Bldgs (20) Required Median days: Complex Bldgs (30) % % n/a Legislation also requires that, upon a request for inspection, staff attend to perform the inspection within 48 hours of the request. During the fall of 2017 staff had difficulty meeting these requirements which caused frustration with both staff and the building industry thus resulting in complaints. As a result of the pressure for staff to achieve the legislative review and inspection requirements, staff have not been able to address outstanding Building Code Complaints. Complaints Received Total Complaint Received (not investigated) Building Code Complaints Order/Notice Issued (still outstanding) Resolved or Closed % of % of Total % of Total Year Total Complaints Complaints % 6 3% % % 32 18% % % 37 15% 51 21% Building Code complaints are a significant liability that could present serious unsafe conditions. Completing this work provides another reason why additional staff are required to inspect and resolve these matters in order to limit the Corporation s exposure. With the increase in building activity, there has also been an increase in building code infractions. Report Page 9 of 12

10 Key Initiatives: Information Sharing Between CBON and Building Industry The Chief Building Officials of Niagara (CBON) hosted an information sharing session on February 6, 2018, at the Regional Council Chambers. This session was well received by the builders as the CBOs shared recent amendments to the Building Code Act and the Building Code regulations, and opened a dialogue for all to better understand how these changes will affect development and how the CBOs and builders can assist each other to ensure a smooth transition. Additionally, the CBON group shared with the builders how they are working on providing a more consistent delivery of service across Niagara for the administration and enforcement of the Building Code Act. The group has reviewed the submission requirements for permit applications and the approach to achieve compliance for the required inspections in the field. The CBON group recognizes the need to build a good working relationship with the local building industry and communication is vital in achieving this goal. The group discussed some of the challenges being encountered on both the builder side and the municipal (regulation) side and identified ways that the two groups could help each other to address these challenges. This information sharing session was a first step in improving relations. Attendees were engaged and provided respectful, thoughtful and supportive feedback. The CBON group are continuing to work with the local building industry to assist them to meet their goals and targets, within the regulations. One significant comment from a builder at the session was, We are all working toward the same goal. We are all on the same team. There should be no us and them. Only us. Technology Advancements Further to the information provided to the Budget Standing Committee, Building Services utilizes many information technologies to provide service to citizens. AMANDA provides the database technology to allow for data collection and reporting. This system works in conjunction with other technologies to streamline and enhance service levels and provide enhanced customer service delivery. In 2018, the Building Services Division is working with IT staff to enable a mobile inspection application (MobiInspect) and Blue Beam (for electronic plan review). MobiInspect is a software solution that will allow building inspectors to use their device (smartphone, tablet or laptop) to capture notes and photos on site and send them to the AMANDA system directly. This will also allow inspection reports to be sent to the site superintendents and improve communication in the field. The Blue Beam system will allow the Division to proceed with electronic plan review. This will streamline the permit approval process as redundant processes can be removed and concurrent plans examination can be conducted. Additionally, efficiencies will be realized since only one set of plans need to be marked up, stored, and issued electronically. Report Page 10 of 12

11 It is expected that toward the end of the third quarter in 2018, the current portal system will be upgraded to become more user friendly and an additional component for online payment will be implemented. This will allow for an improved experience for permit applications to be submitted online, along with tracking and inspection requests. A relaunch of the portal will be offered to provide instruction and assistance. The intent will be to move towards all permits being submitted electronically for review and issuance. Other Services Provided: The Building Services Division takes great pride in offering pre-consultation service to the public and development community to assist in ensuring that clients have the information they need to apply for and obtain a permit as quickly as possible. The public can obtain information readily at the counter or by appointment. At these meetings the engineers and architects who prepare the plans are provided a cursory review and discussion of concerns up front. Staff have engaged in multiple preliminary meetings with the project agents, architects and engineers to assist in the smooth delivery of necessary approvals and permits. While this approach is time consuming for staff, it provides a better communication of the approach and requirements of the OBC and other applicable laws that need to be satisfied for issuing a permit. There are many other instances that staff will have preliminary and ongoing consultation with the owner and their agents. Many permits issued consist of small residential permits such as renovations and alterations, or accessory structures, decks, and pools. The applicant for these types of permits is often the home owner rather than a professional builder. Since their knowledge of the OBC can be limited, these applicants can require much more guidance. Building Services staff are a professional group who are dedicated to ensuring the best level of service possible. Building Services staff also attend pre-consultation meetings for planning applications so that consistent and timely information can be provided to applicants as early in the development process as possible. The building permit is the last stage in the process. The information provided early in the planning stage can assist in identifying concurrent activities that can be conducted to streamline overall approvals. This also ensures that the plans submitted for a building permit do not result in any costly surprises that would not have been contemplated in a planning review. Applicable law requirements such as a Record of Site Condition through the Ministry of Environment and Climate Change or a Code requirement such as limiting distances for windows and other openings from a property line can be identified and the developer and / or builder has the opportunity to address these issues in advance of their application for a building permit. These are issues and activities that a good project manager would identify and address on behalf of the developer / builder. In the absence of a project manager, staff have been providing more of these types of services. Report Page 11 of 12

12 None of these enhanced levels of service generate revenue, although they can be very time consuming for staff. These types of services have been scaled back in 2017 and 2018 due to the lack of staffing resources. Financial Implications As mentioned at the onset of this report, the Building Code Act provides municipalities with the authority to collect fees to recover the cost of administration and enforcement of the Act and the Ontario Building Code. As such, the addition of two FTEs need not have any implications to the tax base since the Building Revenue, together with building fees and permit volumes is expected to cover the anticipated costs for 2018 and 2019 and future years provided building activity continues at the current volume. To fund the two additional FTEs it is recommended that, for 2018, the funding be taken from the Building Code Reserve in the approximate annual amount of $190,000 for salaries and benefits and one-time cost of $7,000 for office furniture/computers. In 2019, these positions are recommended to be funded from the Building Code Reserve Fund. It is further recommended that 50 percent of the salary and benefit costs be funded by the Building Code Reserve Fund in It is anticipated that the salary and benefit costs will be fully added to the Building Services budget in Based on the balance of the Building Code Reserve at December 31, 2017, of $845,400 it would be adequate to support these two additional positions for 2018 and 2019 and 50 percent in It is expected that additional funds will be added to the Building Code Reserve Fund in 2018 based on the anticipated construction activity in the City. Relationship to Strategic Plan This report does not have a direct relation to the Strategic Plan as this report is a legislated requirement under the Building Code Act. Section 7(4) of the Building Code Act, 1992, as amended, requires that municipalities prepare an annual report on the total building permit fees collected, the direct and indirect costs of delivering services related to the administration and enforcement of the Building Code Act, and the balance in the Building Code Reserve Fund. Conclusion It is recommended that a 1.9% increase to the fees will be required in 2019, based on the estimated core inflation rate, to cover wage increases and to continue to replenish the reserve fund for future years, and this increase should be implemented when the Rates and Fees By-law is reviewed in It is also recommended that Council approve two additional building inspector positions to be funded through the Building Code Reserve Fund and added to the budget for 2019, along with an adjustment in salaries for the successful recruitment and retention of qualified staff. Prepared and Submitted by: Sandra Burrows, P. Eng., MCIP, RPP Chief Building Official / Manager of Building & Development Services Approved by: James N. Riddell, M.PL., MCIP, RPP Director of Planning & Building Services Report Page 12 of 12

13 1 City of St. Catharines Annual Report of Fees and Costs, Pursuant to Ontario Building Code Act Section 7 (4) Estimated Costs of Delivering Services (Direct and Indirect) Opening Balance of Reserve Fund $158,257 $40,921 Interest Direct Administration and Enforcement Costs Staffing Costs (Direct Support Staff) $1,404,924 $1,328,357 Direct Office Expeditures $130,631 $104,097 Total Direct Administration and Enforcement Costs $1,535,555 $1,432,454 Indirect Administration and Enforcement Costs Staffing Costs (Indirect Support Staff) $69,048 $163,382 Indirect Office Support Costs $245,712 $237,224 Total Indirect Administration and Enforcement Costs $314,760 $400,606 Total Direct and Indirect Costs $1,850,315 $1,833,060 Total Building Revenue $2,536,941 $1,950,242 Revenue/(Deficit) for current year of $686,626 $117,182 Interest Earned $517 $154 Balance to be transferred to/from Reserve Fund $686,626 $117,182 Balance of Reserve Fund $845,400 $158,257

14 Comparison of Types and Numbers of Permits Building Permit Fee Comparison (LMCBO) per Sq.Ft. 2 Municipality Population Group A Restaurant Group B Institutional Group C Residential House Group D Offices (2- Storey) Group E Retail Group F Industrial Building (3000m2) Difference Difference Difference Difference Difference Difference Barrie 197,059 $1.86 $1.86 $0.00 $2.32 $2.32 $0.00 $1.21 $1.21 $0.00 $1.67 $1.67 $0.00 $1.49 $1.49 $0.00 $0.93 $0.93 $0.00 Cambridge 134,900 $2.55 $2.55 $0.00 $2.71 $2.71 $0.00 $1.37 $1.37 $0.00 $2.15 $2.15 $0.00 $1.52 $1.52 $0.00 $0.95 $0.95 $0.00 Guelph 131,794 $2.35 $2.41 $0.06 $2.53 $2.60 $0.07 $1.25 $1.28 $0.03 $1.97 $1.66 -$0.31 $1.39 $1.66 $0.27 $0.87 $0.89 $0.02 Kingston 123,798 N/A $2.44 $0.00 N/A $2.46 $0.00 N/A $1.10 $0.00 N/A $1.72 $0.00 N/A $1.46 $0.00 N/A $1.14 $0.00 Kitchener 233,222 $2.30 $2.30 $0.00 $2.45 $2.45 $0.00 $1.19 $1.19 $0.00 $1.95 $1.95 $0.00 $1.37 $1.37 $0.00 $0.78 $0.78 $0.00 Niagara Falls 88,071 $1.73 $1.73 $0.00 $1.73 $1.73 $0.00 $1.12 $1.12 $0.00 $1.73 $1.73 $0.00 $1.41 $1.41 $0.00 $0.68 $0.68 $0.00 Oshawa 166,000 $2.00 $2.06 $0.06 $2.16 $2.22 $0.06 $1.18 $1.21 $0.03 $1.49 $1.53 $0.04 $1.36 $1.40 $0.04 $1.14 $1.17 $0.03 Peterborough 81,032 $1.76 $1.79 $0.03 $1.76 $1.79 $0.03 $1.61 $1.66 $0.05 $1.76 $1.79 $0.03 $1.76 $1.79 $0.03 $1.76 $1.79 $0.03 Sault Ste, Marie 75,141 $2.71 $2.90 $0.19 $2.71 $2.90 $0.19 $2.23 $2.39 $0.16 $2.62 $2.81 $0.19 $2.11 $2.25 $0.14 $1.76 $1.88 $0.12 St. Catharines 131,400 $1.90 $1.95 $0.05 $2.20 $2.25 $0.05 $1.25 $1.30 $0.05 $1.70 $1.75 $0.05 $1.35 $1.40 $ $0.05 Thunder Bay 110,000 $1.95 $1.95 $0.00 $2.32 $2.32 $0.00 $1.21 $1.21 $0.00 $1.86 $1.86 $0.00 $1.30 $1.30 $0.00 $1.11 $1.11 $0.00 Waterloo 133,700 $1.60 $1.60 $0.00 $1.70 $1.70 $0.00 $0.80 $0.80 $0.00 $1.35 $1.35 $0.00 $0.95 $0.95 $0.00 $0.55 $0.55 $0.00 Windsor 329,144 $2.18 $2.25 $0.07 $2.25 $2.35 $0.10 $1.09 $1.45 $0.36 $2.25 $2.35 $0.10 $2.06 $2.15 $0.09 $1.00 $1.00 $0.00 AVERAGE 148,866 $2.09 $2.13 $2.23 $2.27 $1.30 $1.36 $1.88 $1.89 $1.52 $1.58 $1.04 $1.07 G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\Fee Comparison 2018.xls

15 Construction Value for 2017 Permits Over $250, Sir Isaac Brock Construct a 2 Storey Addition and Alter Interior of Schmon $14,000,000 Way Tower and Thistle Building Brock University 582 Ontario Street Construct a 4-Storey Addition to Royal Henley Retirement $13,000,000 Residence 527 Carlton Street Construct a Five Storey Apartment Building for Niagara $10,684,000 Regional Housing (excluding structural shell and 212 Lakeport Road Construct a new 45-Unit Condominium Apartment Building $10,000, Vansickle Road North Construct a new 6-storey Group B3 (Care Occupancy) Addition to Existing 3-storey Group C (Residential) Building, $6,300, Vansickle Road North (No Structural Steel and No Foundation Separate Construct a Structural Superstructure, Shell Only for Six Storey Group B3 (Care Occupancy) Addition to Existing Three Storey Group C (Residential) Building $4,500, Lake Street Alter Interior and Construct an Addition to Lake Street $4,000,000 Service Centre 535 Lake Street Mechanical Upgrades Heating System Replacement $4,000, Duncan Drive Construct an Elevator Addition and Front Canopy, and Alter $2,200,000 Interior of Dalewood French Immersion Public School 999 Pelham Road Construct a New 4-Unit Townhouse $2,000, Glendale Avenue Alter Interior for Installation of New Individual HVAC Units, Replace Elevator and Construct New Canopy at Glendale Court $2,000, Carlton Street Construct a Structural Shell (Including Foundation) Only for $1,816,000 Five Storey Apartment Building Niagara Regional 2012 First Street Construct a Foundation Only for Addition to St. Catharines $1,736,600 Transit 30 Power Glen Construct a New 4-Unit Townhouse $1,600, Power Glen Construct a New 4-Unit Townhouse $1,600, Rockcliffe Road Construct a New 3-Unit Row House $1,530,000 61A Village Road Construct a New 4-Unit Townhouse $1,349,000 6 Rodman Hall Construct a New 3-Unit Townhouse $1,300, St. Paul Street West Replace Icepads at Rinks 2 and 3 Seymour Hannah $1,250,000 Sports and Entertainment Centre 295 Fourth Avenue Construct New Building for Pen Financial $1,200, Power Glen Construct a New 4-Unit Townhouse $1,200, Power Glen Construct a New 4-Unit Townhouse $1,200, First Street Construct a Superstructure Only Addition to St. Catharines $1,200,000 Transit 124 St. David s Road Construct a New 3-Unit Townhouse $1,200, Manhattan Court Construct a New 6-Unit Row House $1,166, Manhattan Court Construct a New 6-Unit Townhouse $1,166, Canterbury Drive Construct a New 6-Unit Townhouse $1,050, Canterbury Drive Construct a New 6-Unit Townhouse $1,050, Canterbury Drive Construct a New 6-Unit Townhouse $1,050, Seventh Street Construct a Frame Structure Addition $1,000, Bunting Road Alter Existing Parapet at Briarfield Shopping Centre $1,000,000 G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\Copy of 2017 Permits over xlsx 3

16 Construction Value for 2017 Permits Over $250, Pelham Road Construct a New 3-Unit Townhouse $1,000,000 1 Pierport Common Construct a New 4-Unit Townhouse Condominium (3 two $993,000 storey and 1 bungalow) 20 YMCA Drive Replacement of Full HVAC System and Structural $950,000 Reinforcing 67 Martindale Road Construct a New 3-Unit Townhouse $900, Power Glen Construct a New 3-Unit Townhouse $900,000 4 Manhattan Court Construct a New 5-Unit Townhouse $900, Meadowvale Drive Construct a Shell Only for Hampton Inn $877, Lake Street Construct an Addition and Alter Interior of Subaru of $800,000 5 Cherry Street Construct a New 3-Unit Townhouse with Accessory $780,000 Dwelling Units 61A Village Road Construct a New 4-Unit Townhouse $745, Ontario Street Alter Interior for new Welland House Medical Centre and $734,000 Drugsmart Pharmacy 30 Power Glen Construct New 3-Unit Row Housing With Partially Finished $723,000 Basement (Units 1, 2 and 3) 60 Canterbury Drive Construct a New 4-Unit Townhouse $700, Power Glen Construct a New 3-Unit Townhouse $697, Power Glen Construct a New 3-Unit Townhouse $696,000 2 Pierport Common Construct a New 3-Unit Townhouse $694, South Service Road Construct an Addition to Existing Warehouse for Northland $650,000 Floral 375 Lake Street Construct Second Storey Addition Subaru Niagara $600, Broadway Avenue Construct a New 3-Unit Townhouse $581, Dorchester Boulevard Construct a New 3-Unit Townhouse $555, Ellis Avenue Construct a New 6-Unit Townhouse $540, Ellis Avenue Construct a New 6-Unit Townhouse $540, Ellis Avenue Construct a New 6-Unit Townhouse $540, Ellis Avenue Construct a New 6-Unit Townhouse $540, Olde School Court Construct a New 3-Unit Townhouse $540,000 9 Main Street Construct a New Pavilion at Lakeside Park $536,000 61A Village Road Construct a New 3-Unit Townhouse $527, Glendale Avenue Alter Interior of Kelsey s Restaurant $500, Manhattan Court Construct a New 5-Unit Townhouse $500,000 4 Lloyd Street Construct a New 3-Unit Townhouse $500, Manhattan Court Construct a New 6-Unit Townhouse $500, Glendale Avenue Construct Phase 1 Temporary East Entrance for Pen $500, Roehampton Avenue Construct a Superstructure Addition for Units 8 and 9 and $460,000 Construct New Roof only for Unit 7 4 Ellis Avenue Construct a New 5-Unit Row Housing $450, Seventh Street Construct a Greenhouse Addition $450, Dorchester Boulevard Construct a New 3-Unit Townhouse $440, Lakeport Road Construct New Stage $425, Dorchester Boulevard Construct a New 3-Unit Townhouse $410,000 G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\Copy of 2017 Permits over xlsx

17 Construction Value for 2017 Permits Over $250, Glendale Avenue Alter Interior of Unit CRU 100 for American Eagle $402,000 Outfitters/Aerie 174 Lakeshore Road Construct a New 3-Unit Townhouse $400, Fourth Avenue Construct a Foundation Only for a Mixed Use Building $400, Scott Street Alter Interior and Expand Tenant Space for The Beer Store $400, Hartzel Road Alter Interior of Tim Horton s $390,000 2 Ridley Road Alter Interior of Williams Hall Dining Room Ridley College $361,000 1 Ellis Avenue Construct New Row House Block of 4 Units 1, 3, 5 and 7 $350,000 9 Ellis Avenue Construct a New 4-Unit Townhouse $350, Bradmon Drive Alter Interior of Capri Apartments to Create Additional $350,000 Apartments 386 St. Paul Street Alter Interior and South Exterior Wall for The Lincoln $350, Geneva Street Install a Natural Gas Life Safety Generator at Parkland $337,000 Condominiums 1812 Sir Isaac Brock Replace Plumbing Risers in Lowenberger Residence - $325,000 Way Brock University 221 Glendale Avenue Alter Interior of Unit CRU 35A for Mac Cosmetics $300, Scott Street Install 12 New Roof Top Units at Grantham Plaza $300, Wood Street Renovate Existing Washroom Building $300, Seventh Street Demolish a Fire Damaged Greenhouse and Construct New $286,000 Greenhouse 9 Main Street Renovate Washroom/Concession Building at Lakeside Park $284, Rockcliffe Road Construct Foundation Only $270, Sir Isaac Brock Alter Interior of Library Fifth Floor Schmon Tower Brock $250,000 Way University $129,125,600 G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\Copy of 2017 Permits over xlsx

18 Types of Permits Issued in 2017 Distribution of Construction Value 2017 Type of Permit Permits Issued Type of Permit Construction Value Secondary Buildings 210 Secondary Buildings $3,541,350 Residential 584 Residential $127,991,061 Plumbing Only 227 Plumbing Only $3,900 Commercial (AM, BP and ME) 162 Commercial (AM, BP and ME) $41,141,351 Industrial 15 Industrial $8,396,730 Institutional 3 Institutional $10,800,000 Other (AG, CU, DS,HV, TS) 109 Other (AG, CU, DS,HV, TS) $3,695,900 Total Permits Issued 1310 Total Construction Value $195,570,292 4 Institutional Industrial 0% 1% Commercial (AM, BP and ME) 13% TYPES OF PERMITS ISSUED IN 2017 Other (AG, CU, DS,HV, TS) 8% Secondary Buildings 16% Institutional 6% Industrial 4% CONSTRUCTION VALUE Other (AG, CU, DS,HV, TS) 2% Secondary Buildings 2% Plumbing Only 17% Residential 45% Commercial (AM, BP and ME) 21% Residential 65% G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\Types of permits 2017.xlsx

19 Number of New Dwelling Units Created Year Singles Semis Row Duplex Multiples Apartments / Other Total Number of Newly Created Units in 2017 Singles, 68 Apartments/Other, 199 Semis, 57 Multiples, 17 Row, 179 Duplex, 49 Singles Semis Row Duplex Multiples Apartments/Other G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\New Dwelling unit types and numbers 2017.xlsx

20 Year # of Permits Issued # of Permits Applied for Estimated Value of Construction (Permits Issued) # of New Dwelling Units $195,570, $149,549, $114,147, $142,521, $219,761, $95,757, Chart Title # of Permits Issued # of Permits Applied for G:\PBS-Staff Reports\2018\2017 Building Services Annual Report\Permits and EVC 2017.xlsx

21 Types of Permits Issued in 2017 Permits Type of Permit Issued Secondary Buildings 210 Residential 584 Plumbing Only 227 Commercial (AM, BP and ME) 162 Industrial 15 Institutional 3 Other (AG, CU, DS,HV, TS) 109 Total Permits Issued 1310 Types of Permits Issued in 2016 Permits Type of Permit Issued Secondary Buildings 167 Residential 508 Plumbing Only 226 Commercial (AM, BP and ME) 162 Industrial 23 Institutional 8 Other (AG, CU, DS,HV, TS) 57 Total Permits Issued 1151 Distribution of Construction Value 2017 Construction Type of Permit Value Secondary Buildings $3,541,350 Residential $127,991,061 Plumbing Only $3,900 Commercial (AM, BP and ME) $41,141,351 Industrial $8,396,730 Institutional $10,800,000 Other (AG, CU, DS,HV, TS) $3,695,900 Total Construction Value $195,570,292 Distribution of Construction Value 2016 Construction Type of Permit Value Secondary Buildings $2,598,694 Residential $89,429,721 Plumbing Only $6,025 Commercial (AM, BP and ME) $47,536,189 Industrial $5,889,640 Institutional $1,775,000 Other (AG, CU, DS,HV, TS) $2,314,100 Total Construction Value $149,549,369 Year Singles Semis Row Duplex Multiples Apartments / Other Total

22 Number of Newly Created Units in 2016 Singles, 83 Apartments/Other, 165 Semis, 29 Multiples, 9 Duplex, 18 Row, 79 Singles Semis Row Duplex Multiples Apartments/Other Number of Newly Created Units in 2017 Singles, 68 Apartments/Other, 199 Semis, 57 Multiples, 17 Row, 179 Duplex, 49 Singles Semis Row Duplex Multiples Apartments/Other

23 5 All Construction Estimated Value of Construction for the years Residential Industrial, Commercial and Institutional Other Permit Types Three year average 2017 $195,570,292 $127,991,061 $60,338,081 $7,241,150 $153,086, $149,549,369 $89,429,721 $55,200,829 $4,918,819 $135,403, $114,140,715 $64,969,417 $43,887,599 $5,283,699 $158,819, $142,521,041 $55,568,194 $78,385,372 $8,567,475 $152,691, $219,796,809 $66,361,449 $146,042,840 $7,392,520 $135,380, $95,757,367 $47,935,329 $40,170,554 $7,651, $90,588,583 $32,458,437 $54,360,135 $3,770,011

24 6 Anticipated projects for 2019 and later 25/32 Towering Heights RES 21/17 storey 3 apartment buildings 2@178 units, 1@ sf $ $146,946, Woodburn Ave. RES 6 storey Apartment sf $ $45,528, /610 Lake St. RES 9 storey Apartment Complex sf $ $40,134, Welland Ave. COMM/RES 3/6 storey mixed use 6 storey, 2@3 storey townhomes sf $ $36,580, Welland Ave. COMM/RES 4 storey Commercial Community sf $ $32,500, Benfield Dr. RES 4 storey/2storey 3@2 storey townhomes, 4@4 storey condos sf $ $27,667, Lakeport Rd. RES/COMM 6 storey New Legion Building and Condos sf $ $24,612, Scott St. RES 7 storey Apartment Building sf $ $17,009, /63 Lakeport Rd. MIX 9 storey Restore and Addition sf $ $16,945, Queenston St. RES 3 storey 31 townhomes sf $ $16,377, Grantham Ave. RES 4 storey retirement residence 99 86,650 sf $ $16,100, Ontario St. RES 7 storey retirement residence sf $ $14,479, Vansickle Rd. RES 5 storey Villa Roma sf $ $11,090, Lake St. RES 5 storey Apartment Building sf $ $11,090, Oakdale Ave. RES 3 storey stacked towns sf $ $8,233, Gale Cres. RES 6 storey Condos sf $ $8,110, Fourth Ave COMM 6 storey mixed use sf $ $8,081, Church St. MIX 6 storey Office space and 40 res. Units 40+offices sf $ $7,349, Simpson Rd. RES 2 storey Townhouses sf $ $6,844, St Paul St. COMM 7 Storey Retail/offices sf $ $6,236, Glendale Ave. COMM/LT IND 1 storey Carwash, Gas Station, Fast Food sf $ $5,947, B Vansickle Rd. RES 2 storey Townhouse sf $ $4,071, Beard Pl. RES stacked towns sf $ $3,832, /365 Lake St.. COMM 1 storey Additions to existing Audi dealership sf $ $3,126, /69 Rykert St. RES 2 storey townhouses sf $ $2,914, Geneva St. MIX 3 storey residential above ground floor commercial sf $ $2,442, Ontario St. RES 6 storey mixed use sf $ $2,398, Rykert St. RES 2 storey townhomes and single detached sf $ $2,160, /125 Rykert St. RES 2 storey Townhouses sf $ $2,077, Hannover Dr. LT IND 1-2 storey Warehouse/Light Industrial Building sf $ $2,015, Haynes Ave. RES 2 storey Condo Townhouse sf $ $1,776, Vine St. RES 1 storey Residential Development sf $ $1,623, Scott St. COMM 1 storey 3500 addition + 3 bldgs sf $ $1,352, Moffat St. RES 3 storey Townhouses sf $ $1,204, Vansickle Rd. COMM 1 storey Commercial plaza sf $ $1,196, Geneva St. RES 2 storey townhomes and single detached sf $ $1,089,257.30