Secondary Suite Fees Report

TOWN OF VIEW ROYAL COW REPORT

TO: Committee of the Whole DATE: January 5, 2015 FROM: Lindsay Chase, RPP, MCIP Director of Development Services MEETING DATE: January 13, 2015 FILE NO.:

Secondary Suite Fees

RECOMMENDATION:

THAT this report be received for information.

CHIEF ADMINISTRATIVE OFFICER'S COMMENTS:

I concur with the recommendation.

DIRECTOR OF PROTECTIVES SERVICES COMMENTS:

I concur with the recommendation.

DIRECTOR OF FINANCE COMMENTS:

I concur with the recommendation.

PURPOSE OF REPORT:

To report back on a Council information request regarding fee reductions for early secondary suite permit renewals.

TIME CRITICAL:

Not time critical. Secondary Suite renewals for 2016 will be generated in November of 2015.

BACKGROUND:

On October 1, 2013 Council provided direction to staff to "look into a reduced fee for early payments in regard to secondary suites. (generated from discussion in regard to amendment to MTI bylaw)".

The fees for secondary suites were established when suites were first permitted within the Town. The fees are currently $150 to apply to register a new secondary suite and $100 to renew an existing suite permit on an annual basis. The fees have not increased since the bylaw was adopted.

The following table illustrates the number of suites permits and the revenue each year. It also indicates how many permits are renewed early. Anecdotally a significant number of these early renewals are from people who spend the winter months elsewhere and occur before reminder notices are sent in November. The Town has not tracked the number of suites that renew late, only the total number of permits issued and the number of new registrations.

*Total number of permits and fees received not yet final for 2015

Secondary Suite Permits are valid for the calendar year, running from January 1st to December 31st. The first renewal notice for suite permits are sent by November 15th of the previous year. A reminder notice for those who have not renewed is sent on February 1st. The deadline for renewal is March 1st, after which Type 2 suites are referred to bylaw enforcement for follow up. Type 1 permit holders are sent a letter indicating that a suite may not be occupied without a permit and if the suite is to be occupied a new permit is required. Inspections of Type 1 suites that do not renew their permit have not been undertaken previously. At present, enforcement on Type 1 suites without a permit is undertaken pursuant to the bylaw enforcement policy (where there is a complaint).

PROJECT INFORMATION:

Section 194 of the Community Charter addresses Council's ability to levy a fee for services or the exercise of authority to regulate, prohibit or impose requirements as has been done by regulating secondary suites within the Zoning Bylaw. The same section of the Community Charter also enables Council to establish terms and conditions for payment of a fee, including discounts, interest and penalties.

In a system of incentives and disincentives it would not be uncommon to introduce a discount to encourage a behavior change. In the case of secondary suite renewals, many people already renew early, and the majority renew within the deadlines that have been established. In this situation it would seem that no additional incentives are required to encourage people to renew on time; however staff suggests that instead, a penalty could be considered for late renewals.

BUDGET IMPLICATIONS:

Any reduction in fees will impact on budget. Staff notes that since 2010 there have been steady increases in the number of secondary suite permits that are issued.

At the time the Secondary Suite bylaw was adopted there was some discussion about using the fees to better support bylaw enforcement services. This suggestion was not implemented at the time and Bylaw Enforcement is funded from taxation.

POLICY IMPLICATIONS:

The fees collected are consistent with legislation and policy.

Staff notes that the suite fees were intended to be similar to a business license. The business license bylaw will be reviewed in 2015 to ensure that the fees for various types of business are equitable.

ALTERNATIVES TO STAFF RECOMMENDATION:

Should Council wish to consider a fee reduction for early renewal of suites direction to staff is required indicating the percentage reduction that is desired. Staff will then bring forward any necessary bylaws or policy to codify Council direction in this regard.

RECOMMENDATION:

THAT this report be received for information.

SUBMITTED BY: Lindsay Chase, Director of Development Services

REVIEWED BY: Kim Anema, Chief Administrative Officer