A11
                         ADMINISTRATIVE REPORT

                                           Date: April 26, 1995
                                           Dept. File No. H333

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Review of Permit Fees


   RECOMMENDATION

        A.   THAT fees  for Anchor  Rod  permits be  charged on  the
             basis of $35 per square metre of excavation face.

        B.   THAT  fees for  Street Area  Permits be  established as
             follows:
                                                          Permit Fee

             - Minimum fee, up to 20 m2  . . . . . . . . .  $  35   
             - Each square metre in excess of
               20 m2, up to maximum fee  . . . . . . . . .  $   3.20
             - Maximum fee . . . . . . . . . . . . . . . .  $ 250   

        C.   THAT fees for Temporary Crossing Permits be established
             as follows:
                                                          Permit Fee

             - Single and two family dwelling
               (no demolition) . . . . . . . . . . . . . .  $  105  
             - Single and two family dwellings
               (with demolition) . . . . . . . . . . . . .  $  155  
             - Commercial & multi-residential
               without excavation  . . . . . . . . . . . .  $  470  
             - Commercial & multi-residential
               with excavation, less than three stories  .  $  875  
             - Commercial & multi-residential
               with excavation, three stories or more  . .  $1,750  
             - Roadway Rental Fees per lane
               per half-day  . . . . . . . . . . . . . . .  $  500  

        D.   THAT   fees  for   provision  of  Building   Grades  be
             established as follows:

             Length of Property Abutting     Fee   

                    0 m to   31 m          $   370
             over  31 m to   90 m          $   740
             over  90 m to  150 m          $ 1,100
             over 150 m to  300 m          $ 1,640
             over 300 m                    $           2  ,  2  3  0
        E.   THAT  fees for  Boulevard Crossing Permits be increased
             to a minimum $250, plus an additional $30 for each foot
             of length in excess of 36 feet.

        F.   THAT all revenue from Boulevard Crossing Permit fees be
             directed to a fund for removal of  disused or abandoned
             crossings.

        G.   THAT Council  direct the Director of  Legal Services to
             prepare  the necessary  by-law  amendments  which  will
             implement   these   new   fee    schedules,   effective
             July 1, 1995.

   COUNCIL POLICY

   Council on January 17, 1991 resolved:

   THAT every  Department/Board review  services for which  fees are
   now  charged to ensure that fees  are recovering the full cost of
   the  services to  the  City,  or  are equivalent  to  competitive
   charges where the fee is of a market nature, rather than for cost
   recovery.


   PURPOSE

   The purpose of this report is to recommend revised fee structures
   for  permits which are  issued by the  Engineering Department for
   work   within   the   street  allowance   adjacent   to   private
   developments.  These permits  authorize the use of City  property
   by  developers for  construction activities.   Fee  increases are
   also  proposed  for building  grades  which are  prepared  by the
   Engineering Department.

   BACKGROUND

   Developers wishing to build a  structure on private property  are
   required to obtain some or all  of the following permits for  the
   portions of their work that relate to City streets.

   -    Anchor Rod Permit:   for permission  to install anchor  rods
        (for  temporary support  of  excavations) which  extend into
        City property.

   -    Street  Area   Permit:     for  permission  to   install  an
        encroachment (e.g. construct sidewalk) on City property

   -    Building Grade Fee:  for the City providing elevations to be
        met at the property line, as part of building design

   -    Temporary  Crossing  Permit:   for  permission  to use  City
        street allowance for access for construction purposes

   -    Boulevard   Crossing   Permit:      collected   from   those
        establishing new commercial boulevard  crossings, to pay for
        the removal  of abandoned crossings.This  report reviews the
        basis of the fees  for each of these permits  and recommends
        adjustments where appropriate.

   INTRODUCTION

   Any building construction  on private property  has an impact  on
   City  streets.  Anchor rods  are frequently driven  back from the
   face of excavations onto City property.   Hoarding is constructed
   around excavations, often extending on City land.  Lumber, steel,
   concrete and  other building  materials are unloaded  from trucks
   parked in  the curb lane.   The  erection of some  of the  larger
   building components  such as  tower cranes, precast  cladding and
   beams also sometimes takes place from the street.

   Regulating  these construction  activities so  as to  protect the
   interests of  the City  generates costs  which are  recovered via
   various fee mechanisms.  The following section  describes each of
   these fees,  and recommends adjustments to the  fee structure for
   1995 as necessary.

   PERMIT FEES

   1.   Anchor Rod Permit

        (a)  Description of Permit

             The  building  industry  has  made  increasing  use  of
             tieback  anchor  rods  as  a  cost-effective  means  of
             shoring  excavations.   These anchor  rods  are grouted
             into the  adjacent ground and are  tensioned to provide
             support to the  vertical face of  an excavation.   When
             the  construction  of  the  building  is  complete, the
             anchor rods are  usually left  in the ground  as it  is
             expensive and often impractical to remove them.

             In  1986, Council  approved the  introduction of  a fee
             which is intended  to cover the present value of future
             costs of working around  or removing anchor rods during
             excavation  for future  underground utilities.   Monies
             collected  from  this  fee are  directed  into  general
             revenue.  The  fee of $20/m2  of excavation  face where
             the rods encroached  into street  or lane  right-of-way
             was  significantly lower  than using  other  methods of
             shoring or  being required  to remove the  anchor rods.
             In 1991, the fee was increased to $30/m2.

        (b)  Recommended Fee Structure for 1995

             It  is  recommended that  the  fee for  anchor  rods be
             increased to $35/m2, which is an average increase of 4%
             per year  since 1991.   The average area  of excavation
             surface shored each year using anchor rods is 16,100m2.
             The estimated  revenue for 1995 for  anchor rod permits
   is $564,000.2. Street Area Permit

        (a)  Description of Permit

             The  City  receives  numerous  requests  from  property
             owners and developers to construct improvements on City
             property, such  as to install a  decorative sidewalk or
             to repair damage caused during construction on adjacent
             private property.   Where  this work is  constructed by
             the property  owner, a Street Area  Permit is required,
             which  includes  a  fee  to  cover  the  cost  of  City
             inspection.

             The  present fees  were established in  1992.   At that
             time,   Council  approved   a   rate  structure   which
             subsidized the  flat rate applied to  small jobs (those
             under 20 m2),  where the construction cost is typically
             in  the range  of $120  -  $500.   The  purpose of  the
             subsidy is to  reduce the likelihood that such  work is
             done  without   any  permit,   and  thus   without  any
             opportunity   for  the   City   to  confirm   that  its
             construction standards have been met.  Substandard work
             could subsequently become a public safety hazard, or at
             least  a maintenance problem for the City.  The cost of
             this subsidy in 1995 is estimated to be $14,000.

        (b)  Recommended Fee Structure for 1995

             An increase in  current volumes over the last two years
             has  resulted in revenues in excess of costs.  In 1995,
             we  are recommending that  an area  of inequity  in the
             current fee structure be corrected.  We have found that
             some of the larger  jobs for which Street Area  Permits
             are  being issued  are being  charged a  fee which  far
             exceeds the actual cost of inspection.  In a few cases,
             Street Area  Permit fees are  as much as  $2,000, while
             the actual cost of inspection is around $250.  For this

             reason, it is recommended  that the maximum fee charged
             for  a Street Area Permit  be limited to  $250 in 1995.
             Street area Permit revenues  will be reduced by $17,000
             annually as a result  of this capping.  Because  of the
             increased  permit  volumes being  experienced, however,
             the remainder of the  Street Area Permit rate structure
             need not be adjusted  to make up the lost  revenue from
             this change.

             The proposed fee structure for Street Area Permits is:

                                           Existing         Proposed
                                             Fee               Fee  
             Minimum fee, up to 20 m2      $  35             $ 35   

             Each square metre in
             excess of 20 m2, up to
             maximum fee                   $   3.20          $  3.20

             Maximum Fee                    None
                                         $250   3.Building Grade Fee

        (a)  Description of Permit

             A  fee is  charged to  prospective developers  for work
             done  by  the   Engineering  Department  in   providing
             officially   established   building   grades.      This
             information  is  used  by  developers  to   design  the
             elevation  of building  entrances  and by  the City  to
             accomodate  permanent  street  improvements  which  are
             often  constructed many  years after  the building  has
             been built.   Since this information  also benefits the
             City, the fee is based on a 50% cost recovery target.

        (b)  Recommended Fee Structure for 1995

             Building  grade fees  were last  increased in  1992 and
             should be increased for  inflation over three years and
             to reflect  current volumes  of  requests for  building
             grades to meet the cost recovery target.

             The proposed fees are:

             Length of Property            Existing         Proposed
             Abutting Street                 Fee              Fee   
             and/or Lane       

               0 m to  31 m                $   280           $   370
              31 m to  90 m                $   560           $   740
              90 m to 150 m                $   840           $ 1,100
             150 m to 300 m                $ 1,240           $ 1,640
                 over 300 m                $ 1,690           $ 2,230

   4.   Temporary Crossing Permit

        (a)  Description of Permit

             Construction  activity  virtually  always requires  the
             delivery   of  construction  materials  and  often  the
             removal  of  demolition  or  excavation  debris.    The
             movement of  these materials  between the site  and the
             street is usually facilitated by allowing developers or
             their contractors  the use  of a  portion  of the  City
             street allowance.   Lumber,  steel, concrete  and other
             building materials  are unloaded from  trucks parked in
             the  curb lane.   The  erection of  some of  the larger
             building  components  such  as  tower  cranes,  precast

             cladding  and  beams  sometimes  take  place  from  the
             street.
             The Temporary Crossing Permit authorizes developers and
             contractors to use the  City street allowance for these
             construction activities.  There  are two aspects of the
             permit:  a refundable deposit and a non-refundable fee.
             The refundable deposit is  collected to provide for the
             repair of any damage  done to City property, or  if the
             developer repairs all damage  himself, then the deposit
             is  returned to  the developer  upon completion  of the
             project.  The  non-refundable fee portion is  collected
             to  recover City  costs  of  administering  the  permit
             program.    This  fee  recovers  the  cost  of  issuing
             permits,  site  inspections  before, during  and  after
             construction, billing and collections.  The inspections
             are required to ensure that the amount of street use is
             not  excessive  and that  damage  to  City property  is
             repaired.

             An additional fee, known as the Roadway Rental Fee, was
             instituted in 1989.  This fee is charged for the rental
             of   portions  of   arterial   roadways   for   special
             construction operations  such as tower  crane erection.
             The  intent of the  fee is to  encourage contractors to
             plan their construction  operations so  as to  minimize
             the need  for the use of  arterial street space.   As a
             result, disruption to traffic is minimized.

        (b)  Recommended Fee Structure for 1995

             The  fee structure  for Temporary Crossing  Permits was
             last adjusted in 1992.  The proposed 1995 fee structure
             reflects an approximate 23% increase in fees to reflect
             current permitting volumes and inflation.  No change is
             recommended  to  the  Roadway  Rental  Fee,  since  the
             current fee  of $500  is effective  in keeping  all but
             essential construction activities off arterial streets.

                                           Existing         Proposed
                                             Fee              Fee   

             Single and two family dwellings
             (no demolition)               $   85             $  105

             Single and two family dwellings
             (with demolition)             $  125             $  155

             Commercial & multi-residential
             without excavation            $  380             $  470

             Commercial & multi-residential
             with excavation, less than
             three stories                 $  710             $  875

             Commercial & multi-residential
             with excavation, three
             stories or more               $1,425
                        $1,750(c)Roadway Rental FeesExistingProposed
                                             Fee              Fee   

             Per lane per half-day         $  500             $  500

   (5)  Boulevard Crossing Permit

        (a)  Description of Permit

             Throughout the  City, there  are a number  of abandoned

             boulevard  crossings  which serve  commercial driveways
             that are  no longer in  use.   These disused  crossings
             create  problems  for   parking  meter   installations,
             parking enforcement, and streetscape aesthetics.

             Crossings  are abandoned when  buildings are altered or
             demolished,  so  that  some  crossings  are  no  longer
             required.    When  redevelopment occurs,  measures  are
             taken  to   ensure  the  removal  of   these  abandoned
             crossings  at  the  expense   of  the  developer  as  a
             requirement of the development permit.

             Crossings are regulated by the Crossings  By-law, which
             requires the owner of the  adjacent property to pay all
             costs for each new installation and to remove abandoned
             crossings which serve his property.  However, there are
             many abandoned  crossings adjacent to  properties which
             are not likely  to be developed in the  near future.  A
             minimum crossing permit fee  of $200 per new commercial
             crossing is charged ($190 goes into a fund  for removal
             of  disused crossings, and the remaining $10 is in lieu
             of an annual  rental of the boulevard space occupied by
             the  crossing.   Any  crossing  over  36 feet  wide  is
             charged an additional $30 for every foot over 36 feet.

        (b)  Recommended Fee Structure for 1995

             The  current crossing  fee of  $200 was  established in
             1987.  It is  recommended that the minimum fee  of $200
             be increased to  $250, which is an average  increase of
             3.5% a  year since  1987.   In the  past two years,  an
             average of  56 new  crossings per year  were installed.
             The proposed  fee would  generate a revenue  of $14,000
             ($250 x 56)  per year, to  be applied to  the fund  for
             removal of the abandoned crossings.

             As the Encroachment By-law no longer requires an annual
             rental charge  for  boulevard  crossings,  it  is  also
             recommended  that the  full amount  be credited  to the
             fund for removal of abandoned crossings.SUMMARY

   The proposed revised fees outlined in this report are intended to
   bring revenues in line with current costs and permit volumes.  As
   explained  in the report, the  Street Area Permit  fee includes a
   subsidy to the smallest permits of approximately $17,000.

   Based on the projected number of permits issued,  these increases
   represent an  increase  in annual  revenues  of $186,000.    With
   implementation  part  way  through  the  year,  the  increase  in
   revenues for 1995 is projected to be approximately $100,000.


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