Attachment A: Building Bylaw Update Report (COW March 7, 2023)

PURPOSE:

The purpose of this report is to present Council with information regarding an update to the current Building Bylaw No. 786. In addition, this report will discuss the key changes to the Bylaw, and the outstanding tasks and consequential amendments to other bylaws that are needed to support this project.

BACKGROUND:

The current Building Bylaw No. 786 was enacted on January 4, 2011, and has not had a substantive review since its adoption. Given the length of time since the adoption of the current bylaw, staff wish to bring forward several housekeeping amendments for Committee's consideration.

The Municipal Insurance Association (MIA) developed an updated draft model Building Bylaw in 2018, in response to the large number of liability claims being made against municipalities relating to building plan checking and field inspection. This model bylaw was then circulated to MIA members and subsequently widely adopted by municipalities who are insured by the MIA. The draft Building Bylaw is based on this MIA model bylaw, which will strengthen the policy defences as recommended by MIA.

Council adopted the Energy Step Code which was incorporated in the current Building Bylaw in August 2022. There was a window of opportunity during this adoption to conduct a review of the building permit process, policies associated with permit issuance, and to provide a more robust regulatory framework that is supported by a revised Building Bylaw.

As most of the changes are administrative in nature, a wide public consultation did not take place. Specific clauses were forwarded to a number of architects and engineers to check on its application.

DISCUSSION:

While the changes in the draft Building Bylaw are mostly housekeeping, there are a few changes worth highlighting below (with the reference sections in brackets). In addition, the Fees and Charges Bylaw No. 958 and the Municipal Ticketing Information (MTI) Bylaw No. 643 must be amended in conjunction with the revised Building Bylaw. All three bylaws must be enacted concurrently in order to continue charging fees for permits and enforcement. To enable a smooth transition and give staff adequate time to update the permitting software system (requires third party assistance) and complete administrative tasks required to implement the new building bylaw, it is recommended that bylaw enactment date of the new Building Bylaw is September 5, 2023.

The following is a summary of the key changes to the Building Bylaw:

1. Scopes and Exemptions (4.1-4.3) - The revision provides clarification on specific scopes of work where a building permit is required, and to also include scopes of work that do not require building permits because they are not applicable in the building code, such as a fence, tent, paving, etc.

2. Refusal and Revocation of Permits (7.6) - The framework to refuse or revoke a building permit is a foundational piece of a robust building bylaw. This was missing and is now added. Permits are revoked when they are issued in error or for serious violations after a permit has been issued. There is an administrative step that is not included in the current bylaw where the building inspector must have the approval of the CAO prior to utilizing this step.

3. Demolition Requirements (8.8 & 8.9) - Staff are proposing requirements to manage a demolished site should the construction not commence within 6 months, including clear and make levelled the site, install security fencing and provide an interim landscaping plan. The interim landscaping plan will require a security amount to ensure it takes place.

4. Professional Engineer’s Review (10.3) – in addition to recommendations by MIA, staff are proposing to require a professional engineer’s involvement regarding a building envelope design and retaining walls over 1.2m (change from 1.5m currently). Furthermore, staff are recommending adding in the bylaw the requirement of a separate independent check of structural design of a complex building. The reliance on professional design in the current Bylaw is refreshed with the MIA recommended wording.

5. Intake Screening (11.1-11.3) – Staff are recommending a more robust intake procedure prior to accepting a building permit application to better manage workflow. If applicable, an approved development permit and a conditional approval of the Servicing Agreement must be in place before the project is processed so that staff are giving priority to projects that are “issuable”. Staff can also refuse a building permit where the submission is deemed to be incomplete, not substantially meeting the Building Code and other requirements, upon screening. There is a non-refundable application fee associated with each intake.

6. Certified Professionals (11.8-11.20) – The Certified Professional (CP) program is a well tested program for administering permits for complex building permits, and is enabled in the Cities of Vancouver, Surrey, and Abbotsford. The CPs are Registered Architects or Professional Engineers who have passed a Certified Professional course and have additional building code expertise. By bringing the CP program to the Town, it will provide an added layer of expertise for the permit issuance of complex buildings. It is further proposed only CP projects be allowed for phased permits (excavation/foundation/full). The current Bylaw allows for an excavation permit, without this added layer of professional involvement, which has proven to be problematic in some sites. Using CPs remains a choice for owners, should they want to get the excavation going, prior to finalizing other project details.

7. Cost of Construction (definition & 11.22) - "Cost of Construction" is further clarified to include most hard and soft costs that are generally under a construction contract. The cost of construction is used to calculate building permit fees. While the calculation of permit fees has not changed, by providing clarity to the definition on what is intended to be included in the cost of construction, the building permit fee may be higher since the cost of construction may include costs that are not currently assumed under the current Building Bylaw. Staff are also adding a step of a re-evaluation of construction cost at occupancy to account for any missing permit fees.

8. Excavation Securities (11.28) - The current requirement is $50,000 for the security deposit for an excavation permit. Staff are proposing to increase this security deposit of 2x the cost of site restoration, with a minimum of $50,000, should we need to initiate the backfill work, which is usually more than $50,000 depending on the size of excavation. This will be a more realistic cost should we need to carry out the work.

9. Bad Faith Clause (11.45) – some local governments have requirements in their Building Bylaw that stop services pertaining to any permit activities where the same owner or constructor has violations in another site that have not been satisfactorily resolved. Staff are recommending the adoption of similar provisions to add an enforcement tool to regulate construction compliance.

10. Permit Expirations and Extensions (11.47 & 11.48) - The current bylaw allows for construction to be completed in one year, and the building inspector may extend this period with no specific time window. The revised proposal is for a building permit to be valid for two years from the date of issuance, and allows two separate one-year extension, making a building permit valid in total for four years with extensions. An applicant has a choice to apply for a new permit for any remaining work after this four-year construction window, which may be subjected to new building code provisions. Another method is to apply to Council to further extend their permit. These requirements will apply to all permits, and will set the clock to clean up abandoned issued permits in our system.

11. Expiry of Permit Applications (11.50) - Administrative expiry terms are added for applications that are in stream to keep the process moving. Applicants will have 60 days to respond to an application review notice, and 30 days to pick up the permit once the permit is readied for issuance. The current Bylaw does not have these dates, which are common in many jurisdictions as an administrative measure to keep the permit process active.

12. Revisions (11.52-11.54) - Provisions are added to clarify what are considered as revisions that will require pre-approvals from staff prior to changes, including changes relating to volumetric shape, form and character, grading, siting, parking, unit counts, etc. Other changes may be recorded in the record drawings as revisions without the pre-approvals.

13. Alternative Solutions (11.55) - Alternative solutions are allowed in the BC Building Code where the design does not follow the prescriptive requirements. Staff are proposing a fee for the review of the report for cost recovery. Many local governments are charging for the reviews of Alternative Solutions.

14. Plumbing Permits (Part 13) – Staff are proposing a set of consolidated provisions to administer plumbing permits. Staff are going to specify only licenced plumbing contractors to obtain the plumbing permits. Homeowners can continue to do limited work in their own homes with an homeowner plumbing permit. Staff are also proposing to set up an acceptance system, if needed, where a licensed plumbing contractor may certify their own work without an inspection. Such work may be subject to another licensed plumbing contractor’s verification at the owner’s expense.

15. Monitoring check (definition & 14.4) - The role of a building inspector is clarified as performing a "monitoring check" for complex buildings, and limiting the audit check for "health and safety aspect of the work" to clearly excludes building envelope, mechanical systems and structural elements that are under the design of a Registered Professional.

16. Safe Worksites (8.4, Part 16) - The Building Bylaw is amended to clarify the owner is responsible to comply with Worksafe regulations, manage construction parking and materials storage, provide sanitary facilities, and deal with hazardous materials. Worksafe regulations stipulate asbestos abatement work must be done for buildings older than 1990 if asbestos was used.

17. Administrative Changes for Occupancy (18.1-18.10) – Staff are proposing a more robust framework to provide approvals for occupancy of a building. A building inspector can now use a “final inspection notice” to authorize an occupancy should there be outstanding items that need to be completed that are not life safety related, such as paving and landscaping. A building inspector can also issue an approval for a “shell building”, usually in a commercial or industrial application, where the finishing work is done under another permit. Lastly, a building inspector can authorize occupancy of a residential complex buildings where there are unfinished suites, of not more than 10% of the total units, to accommodate situations where the future owners of the strata unit may want a different finish.

18. Temporary Buildings (Part 19) - The current Building Bylaw does not regulate temporary buildings. Temporary buildings may include construction trailers, school portables, or prefabricated housing units. Staff would like to include these provisions to be prudent for future project proposals, as recommended in the MIA model bylaw. All temporary buildings will need to meet the Zoning Bylaw and other applicable bylaws.

19. Pools (Part 23) – Many local governments have provisions regarding pools to ensure safety. Pool regulations are mostly about fencing to minimize accidents, which is being added to the new bylaw.

20. Work Without Permit Penalty (25.3) – The current bylaw charges double permit fee where work has started without a permit. Staff are proposing a minimum penalty of $1000 and a maximum penalty of $25,000, to further enforce a deterrent.

21. Fee changes (Fees and Charges Bylaw) –Staff are proposing to adjust some current fees and charge per hour rather than a flat rate for some services to account for the lost time. There are some new fees for reviews of alternate solutions, revisions and a generic service hourly rate. The building permit fee rate remains the same, but the no refundable applicable fee is proposed to increase from $50 to $100 to account for the time it takes to process a permit. The proposed fee changes are more aligned with other municipalities in the region, as shown in the Table 1 below.

Table 1. Fee comparison of neighbouring municipalities

22. MTI Bylaw ticketing adjustments - The current ticketing amounts have not been reviewed since 2010. Staff are proposing to revise the amounts to be comparable to neighbouring municipalities and add a penalty as a deterrent for non-compliances, as shown in Table 2 below. A bylaw officer can ticket more than once if needed for enforcement.

Table 2. A comparison of municipal ticketing amounts

23. Other administrative changes including the following:

• unsafe to occupy notice – for structurally unsafe buildings (definition, 7.4(d), 24.7)
• application to existing building (4.4-4.7)
• types of permits (6.1)
• pre-construction and pre-occupancy meetings (14.9)
• tree protection reference (11.46)
• site drainage considerations (17.1)
• retaining walls requiring professional designs– (20.1-20.2)

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

The Town is committed to taking steps to increase energy-efficiency in new buildings by adding the Province’s Energy Step Code performance requirements in the current Building Bylaw, which came into effect on January 1, 2023. New Part 9 Buildings (i.e., single-family dwellings, duplexes and townhouses) and wood frame residential buildings up to 6 storeys must meet BC Energy Step Code 3 and new Part 3 buildings (other residential and commercial buildings) must comply with Step Code 2. These changes further advance the Town’s commitments to reduce energy use and emissions in buildings, and these performance requirements are also embedded in the draft Building Bylaw.

There are also references for better handling of hazardous materials and using the current building code that will have some impact on overall sustainable impacts.

NEXT STEPS AND OPPORTUNITIES FOR ENGAGEMENT:

There are many administrative changes that need to be in place to support the revised processes identified in the draft Building Bylaw, including revised application forms, updates to permitting software and changes to the Town’s webpages. It is recommended that the draft Building Bylaw includes an enactment date of September 5, 2023, to ensure staff have sufficient time to complete all the implementation requirements.

With respect to BC Energy Step Code, there are no additional changes with this administrative update at this time. Locally, the City of Victoria and District of Saanich are moving towards Energy Step Code 3 and low carbon for Part 9 Buildings in July 2023, and low carbon for Part 3 Buildings in July 2024. The Province will introduce a new “Zero Carbon Step Code” in May 2023, which will be an optional Step Code for local governments to consider. Staff will be reviewing these changes and will bring a report forward to Council in the future.

FINANCIAL IMPLICATIONS:

There are no financial implications that would impact the Town. However, there would be an increase in some permit and municipal ticketing fees to be more consistent with neighbouring municipalities.

CONCLUSION:

The last substantive changes to the Town’s Building Bylaw occurred approximately 12 years ago and an update is due. Using the MIA model bylaw as a base will provide a more robust regulatory framework going forward, especially for complex buildings where there are professional reliance.

RECOMMENDATON:

THAT the March 7, 2023, report from the Auxiliary Building Official titled “Building Bylaw Update” be received for information.

ATTACHMENTS:

• Draft Building Bylaw