ADMINISTRATIVE REPORT Date: December 5, 1995 Dept. File No.2053 TO: Vancouver City Council FROM: General Manager of Engineering Services SUBJECT: Proposed Amendment to Fee Schedule of the Encroachment By-law to Reflect Full Cost Recovery for Easements Granted on Portions of Streets and Lanes RECOMMENDATION A. THAT the fee schedule to the Encroachment By-law be amended to provide for an administrative fee of $3,000 for easements granted over portions of streets and lanes, to accommodate building encroachments. B. THAT the Director of Legal Services be requested to bring forward the appropriate By-law amendment. COUNCIL POLICY On November 22, 1994 Council requested staff to prepare a new fee schedule to reflect full cost recovery for agreements prepared pursuant to the Encroachment By-law matter. Council policy is generally that fees and charges be set at cost-recovery levels. PURPOSE The purpose of this report is to advise Council of the costs of processing an application for a registered easement, to accommodate building encroachments onto streets and lanes. BACKGROUND In the past, building encroachments have been validated by an agreement prepared pursuant to our Encroachment By-Law. The agreement was then registered as an Easement and Indemnity Agreement against the title to the parcel, on which the encroaching building was situated. However, the Registrar of the Land Title Office took the position that if the owner of the encroaching building wished to strata title that building, they must secure an easement to contain the encroaching portions of the building. This easement must be registered against the title of the land encroached onto (i.e. the road or lane). The Registrar believed this was required by the Condominium Act. - 2 - Many roads and lanes in the City have no "title", because they were created by dedication, and it is therefore necessary to raise title to a portion of road before an easement can be registered. The easement is prepared to conform, as nearly as practicable, to the shape of the building encroachment. Furthermore, as the easement has the effect of denying public access to the portion of road covered by the easement, technically Council must stop-up and close the road. On November 8, 1994, when dealing with a report related to one of the first requests for an easement to accommodate a building encroachment onto the street, Council requested that staff prepare a new fee schedule to reflect full cost recovery. Since that time, City staff, Land Title Office staff and the solicitor for the applicant have been pioneering a new procedure to accommodate these types of situations. Future applications should take less time, using the new established procedures, but having gone through the complete process on a new application, we now have a better idea of the staff time involved in processing an application. The $3,000 recommended fee results from staff time in both our Law Department and Land Survey Branch. CONCLUSION Council wishes to see full cost recovery for agreements prepared to accommodate strata conversion of buildings which encroach onto the streets and lanes. This report recommends that the administration fee for the preparation of easement agreements necessary to permit strata conversion, be set at $3,000 and that the Encroachment By-Law be amended accordingly. * * * * *