As part of the updates to the building bylaw, staff are reviewing the ways that current permit fees and fines are calculated to:

• Support transparency and consistency in the valuation of permits
• Encourage compliance with the building bylaw and timely closure of files
• Ensure the long-term stability of department operations

Currently, permit fees are calculated based on the declared value of construction, which can have large variability and is often not disclosed correctly.

This also often creates conflict, because the declared value may be estimated by the builder and may vary dramatically depending on the type of project and client.

A new separate fees and charges bylaw is proposed, which will calculate fees based on work involved, rather than the declared value of construction.

This approach would help to achieve the following:

• Reduce ambiguity and create clarity and consistency for builders and the municipality
• Consider the uniqueness and complexity of many projects and additional time to complete projects
• Determine fees according to the permit and building type for a value per square foot of area being constructed
• Be transparent about the number of services (for example inspections) included

Permit fees will be calculated based on the following formula, unless otherwise specified in the fee schedule:

Permit fee = PSI x A

• PSI: Permit Scope index for classification of proposed work as detailed in the permit fee index to classify proposed work

• A: Floor area in m2 (A) of work involved, measured to the outer face of exterior walls and to the centre of party walls.

This would be an innovative approach for a B.C. municipality. Communities outside of B.C., including the City of Toronto, City of Calgary, and City of Mississauga, have adopted this approach.