Agenda

Economic Prosperity and Development Services Advisory Committee Meeting

to be held at City of Penticton, Council Chambers, 2nd Floor

171 Main Street, Penticton, BC

Friday, January 10, 2020 at 8:00 a.m.

1. Call Regular Committee Meeting to Order

2. Roundtable Introductions

3. Adoption of Agenda

4. Adoption of Minutes 3-6 4.1 Minutes of the July 19, 2019 Economic Prosperity and Development Services Advisory

Committee

Staff Recommendation: THAT the Economic Prosperity and Development Services Advisory Committee adopt the minutes if the July 19, 2019 meeting as presented.

5. New Business

5.1 2020 Committee Orientation – Paula McKinnon, Legislative Assistant

5.2 2019 Year in Review (Development Statistics) – Blake Laven, Acting Director of Development

Services 7-12

Staff Recommendation: THAT the Economic Prosperity and Development Services Advisory Committee receive the presentation titled ‘2019 Year in Review’ into the public record.

5.3 2020 Development Services Work Plan – Blake Laven, Acting Director of Development Services

13-27

Staff Recommendation: THAT the Economic Prosperity and Development Services Advisory Committee receive the presentation titled ‘2020 Development Services Work Plan’ into the public record.

5.4 2020 Building and Licensing Fees and Charges Changes – Ken Kunka, Building and Permitting Manager 28-33

Staff Recommendation: THAT the Economic Prosperity and Development Services Advisory Committee receive the presentation titled ‘2020 Building and Licensing Fees and Charges Changes’ into the public record.

5.5 2020 Economic Prosperity and Development Services Advisory Committee Goals and Priorities –

Frank Conci, Chair 34-36 6. Next Meeting

6.1 Proposed 2020 Economic Prosperity and Development Services Advisory Committee Meeting

Schedule – Paula McKinnon, Legislative Assistant 37

7. Adjournment

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2019 – Development StatisticsYear in review

Development Statistics

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PLANNING APPLICATIONS

9 1016

307 7

3

9

7 35

5

05

101520253035404550

Q1 Q2 Q3 Q4

2019 Planning Applications by Quarter (RZ/DP/Sub)

Development Permit Zoning / OCP Subdivision

0

50

100

150

200

250

300

350

2010 2011 2012 20113 2014 2015 2016 2017 2018 2019

95 99

236

155 158 163

219

303282

212

Planning Applications by Year

Planning Applications by Year

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CONSTRUCTION VALUES: BUILDING PERMITS

0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000

2015

2016

2017

2018

2019

60,760,408

197,935,483

197,878,905

145,111,923

182,122,759

Building Permits Construction Value by Year

SINGLE FAMILY HOUSE UNITS APPROVED

0 10 20 30 40 50 60 70 80 90 100

2016

2017

2018

2019

83

93

98

38

Single Family Building Permits Issued

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MULTI FAMILY UNITS APPROVED

190 200 210 220 230 240 250 260 270

2016

2017

2018

2019

221

249

254

264

COMMERCIAL PERMITS ISSUED

0 10 20 30 40 50 60 70

2016

2017

2018

2019

36

70

65

53

Commercial Permits Issued

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Single Family Dwellings

Duplex UnitsMulti‐Family 

UnitsSecondary Suites

Carriage Houses

Annual Total

2014 92 20 42 8 2 1642015 69 56 39 9 6 1792016 83 50 221 34 8 3962017 93 64 249 41 11 4582018 98 62 254 51 26 491

2019 38 15 264 31 15 363

TOTAL 473 267 1069 174 68 2051

SUMMARY: HOUSING UNITS TOTALS SINCE 2014

Single Family Dwellings make up 23% of housing stock approved since 2014Multi Family Dwelling Unit types make up 77% of housing stock approved since 2014

2051 Housing Units approved since 2014

BUSINESS LICENSE STATISTICS

3197Total Active

Business Licenses

198Active Vacation

Rentals

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Major Projects • Marriot Hotel (10.1m)• Hospital ($18m)• Neighbourhood Brewery ($3.5m)• Ellis One ($13.5m)• Skaha Towers Phase II ($25 m)• Cherry Lane Mall ($1.5m)• Travellers Motel ($1.2m)• Burdock House ($10m) • Valley First ($6.9m)• HomeSense ($1.5m)

Staff Recommendation

THAT the Committee receive the presentation “2019 year in review” into the public record

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2020 Development Services Work Plan

Planning / Building-Licencing / Economic-Social Development / Development Engineering

2020 Economic Outlook - BC Business Magazine: 2020 real estate forecast is

decidedly cloudy - Conference Board of Canada: BC and Alberta will

lead Canada in economic growth in 2020, with energy sector leading the way.

- RBC Chief Economist, Craig Wright: BC housing starts to remain strong and prices to slightly increase (1.3%) after 4.3% decline in 2019.

- TD: Reversion to more historic levels of building activity and higher than historic non-residential investment (energy)

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2020 – Development Opportunities for Penticton

• Resolution of servicing issues for Wiltse Flats – 850 housing unit potential

• Resolution of land use for Spiller Road lands – 250 housing unit potential

• Outside investment in Penticton – Westminster Avenue – Skaha Lake Road

• Market and non-market rental construction

• Hotel construction to support PTCC• Ironman

2020 Financial Plan and Department Work Plans

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2020 City of Penticton Financial Plan –

Operating Expenses

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Planning

• OCP Implementation – Zoning Bylaw Update– Development Procedures Bylaw

• Board of Variance • Climate Action planning• Current development focus (high expected work load)

Economic-Social Development

• Integration of Social Development Specialist• Continue implementation of Economic Development Strategy • Job fair (March 12th at the PTCC)• Business Climate Survey for manufacturing sector• Site visits for local high schools into local businesses • Futurebiz 2020• Childcare Assessment / Age Friendly Community designation /

Food Security

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Building / Licencing

• Focus on efficient processes and process improvement

• Modernize business licensing program

Home owner permit program • New guides – workshops• Pre-Application meetings• Building Safety Month - May• Express qualified contractor permits• Promotion of Secondary suites &

Carriage homes

Projects for 2020

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Business Licence Program Overhaul • Modernize and Repeal Bylaws• Adjust Fee structures (lower renewals)• Regional Core bylaw development• Stakeholder & Provincial reviews• Trades Qualifiers – Express Permits• Business liaison program• Online eApply process• New website

Building Bylaw Update • On November 11, 2018 – Building Bylaw

2018-01 came into effect.• March 15th, 2019 – Step 01 – BC Energy Step

Code – Part 9 residential projects• Lessons learned - Annual review of Bylaw and

processes

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Building Bylaw• Part 14 - BC Energy Step Code

– Introduction of Mid-Construction test reports

– Incentive for Mid-Construction air blower testing ($250/Bldg)

– Step Code 03 requirements be delayed to October 01, 2019

• More project design and construction coordination.

Building Bylaw Update• Education & Enforcement

– Pre-Application meetings– Infill developments– Missed inspections– Changes to project without

approvals – Step Code– Closure of Permits

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Building BylawTimeline• Overview with EPDSAC – January 10, 2020• Introduction to Council – March 3, 2020• Public consultation – March (CHBA homeshow)• Council adoption - April 7th, 2020• Permit Fee review for 2021budget

Development Engineering

• Increasing accountability • Processing large subdivision applications (Wiltse /

Spiller / Dartmouth) • Subdivision and Development Bylaw • Development Cost Charge (DCC) program

improvements

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Development Cost Charge Program Updates

Definition

Development Cost Charges – A one-time charge collected from land developers by a municipality to offset some of the infrastructure expenditures incurred to service the needs of new development.

Development Cost Charge - Best Practice Guide

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How it worksImposed by Bylaw the charges are intended to facilitate development by providing a method to finance capital projects related to growthSubdivisions• Single Family Zoned / Duplex Zoned

Building Permit• Multi-Family Residential per Unit • Commercial • Industrial• Institutional

Water Filtration

Domestic Water

Public Open Space

Current Cost Charges Highways

Storm DrainageSewer

Update Need• Last major program update

2007• Construction inflation since

2007 approximately 40%• New Official Community Plan • Project list is out of date

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Council Direction(June 4, 2019)

• THAT Council direct staff to review the DCCs for Public Open Space and compare to similar sized municipalities in the Okanagan;

• AND THAT staff review cost of construction increases that might be applied to all classifications within the DCC Bylaw

• AND THAT Staff provide Council with an amending bylaw that addresses Public Open Spaces within one year.

Council Priority

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Proposed work plan

1. Interim inflationary increases (minor amendment) – 1st reading of Bylaw to increase DCCs by 20% in 2020 and 20% in 2021

2. Amendments to the DCC reduction program (encourage sustainable developments and housing affordability) – 1st reading postponed

3. Open Space (Parks) DCC update based on PRMP

4. New DCC rate structure (based on new Official Community Plan and infrastructure master plans)

Water Filtration

Domestic Water

Public Open Space

Current Cost Charges Highways

Storm DrainageSewer

Committee Involvement

Work plan presented to and supported by:• Economic Prosperity and Development

Services Advisory Committee (July, 19 2019)• Parks and Recreation Advisory Committee

(August 21, 2019)

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Engagement Need

• Public and stakeholder consultation is a requirement of DCC program updates and new rates

• Follows City’s commitment to involve public in decision making

Stakeholder Analysis

General Public

Committees (PRAC / DSAC)

Developers / Builders

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Engagement Strategy

• Communicate the ‘big picture’ • Leverage our Committees• Properly inform the development community • Provide opportunities for feedback• Coordinate activities and scale it to

stakeholder interest

Engagement Plan

Stakeholder IAP2Level Techniques

General Public Inform • Council Meetings / Media• Utility Newsletter• Create SYC landing page with feedback form

Committees –DSAC / PRAC

Involve • Meetings to introduce work plan, review analysis and gather feedback on recommendations

Developers / Builders

Inform / Consult

• Create SYC landing page with feedback form• Direct emails to notify about work and opportunities to

get involved• Presentations to learn about program as a whole and

specifics for each initiative• Follow up workshop if desired

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Next steps • Engagement plan commences • Report to Council on engagement results prior to

2nd reading of bylaws• Amend as required• Send to Inspector of Municipalities for approval• Adopt bylaw ~ April 2020• Begin larger DCC update after completion of

master plans (2021-2022)

Staff recommendation

THAT the Committee receive the presentation, “2020 Development Services Work Plan” into the public record.

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2020 Building and Licensing Fees and Charges Changes

EPDSACJanuary 10, 2020

Key Drivers for Changes:1. Inflation2. Changes that bring the City’s fees in line with

other neighboring markets3. Changes that are intended to bring the City

closer to full cost recovery4. New or Deleted Fees and Charges related to

new services or billing methodologies

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2020 Key ChangesBuilding & Licencing• Fee rates set for self supporting budget:

– No tax base support (no surplus revenue reserve)– Cover operational costs & Special Projects– Assist supportive services:

• Dev Services, Finance, IT, Bylaw Enf, Corp Admin, Fire

2020 Key ChangesBuilding:• Base Building permits = $175.00 to $180.00• Base Plumbing/Mech. permits = $75.00 to $80.00• Increase to re-inspection, plan check fees• Introduce $11.00 per $1000 valuation scale

– $300 BP (3.5%) average increase for projects $500,000 to $1,500,000 in construction value.

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2020 Key Changes

• Secondary suite permits $300.00 to $400.00• Reduction in Complex Building Registered

Professional discount– Maximum 15% to 5% of permit valuation

• Inclusion of GST applicable fees for service

• Energy Code Incentive of $250 for mid-construction blower door testing per building

• Implementing sidewalk use fees for 100 and 200 Blocks of Main Street

• Increase in ‘Vacant Building Registration Fees’

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2020 Key ChangesBusiness License:• Introduction of a minimum non-refundable

application fee of $80.00• Base rate inflationary changes

– i.e. minimum license fee $175.00 to $180.00• Intercommunity licence fee of $150.00 –

standard regional fee

2020 Key ChangesBusiness License:• Short Term Rental

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2020 Key ChangesBusiness License:• Short Term Rental

– Elimination of Tourism Fees– Increase in base STR licence rates Minimum– $250.00 Major High Occupant load application

2020 Key Changes

• Downtown Farmers Market– $400.00 to $500.00

• Downtown Community Market– $1000.00 to $1250.00

• Inclusion of GST applicable fees for service

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Staff recommendation

THAT the Committee receive the report, ‘2020 Building and Licensing Fees and Charges Changes’ into the Public Record.

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Economic Prosperity and Development Services Advisory Committee

2019 – 2022 Terms of Reference

1. The Committee shall consist of Eighteen (18) voting members appointed by City Council for a term ending December 31, 2022. Preference will be given for:

o Three (3) Members of the community within an interest in the Local and Regional Economic Development

o Five (5) Members of the local Development & Business Community o One (1) member from each of the Priority Industry Clusters

Technology Manufacturing Tourism, Event, Arts & Culture Beverage Industry – wine, beer, sprit production

o One (1) Youth Representative o One (1) member from the Penticton Indian Band o One (1) member from the Canadian Home Builders Association o One (1) member from the Chamber of Commerce o One (1) member from the Penticton Industrial Development Association o One (1) member from Post-Secondary Education o One (1) member from the Downtown Penticton Association

2. The Advisory Members shall appoint a Chair and Vice-Chair each year.

3. Role of Council Representative:

• Two (2) representatives • Non - Voting Member • Liaison to City Council

4. A majority of appointed voting members shall constitute a quorum.

5. The Mayor and one Council member shall attend advisory meetings to provide advice and operational support to the advisory committee.

6. The CAO and Director of Development Services shall attend advisory meetings to provide advice and operational support to the advisory committee. Development Services and Economic Development staff will attend as needs arise.

7. The Corporate Administration Department shall arrange for secretarial services to the advisory committee.

8. The advisory committee shall meet quarterly, or as required when a new piece of business is referred to the Committee by Council or staff requiring immediate action.

9. The advisory committee’s mandate is to assist the Mayor and Council and the Penticton business and development community to create, a healthy, sustainable and dynamic economy.

The advisory committee will provide recommendations and direction to Council on the creation of new bylaws and policies within the Development Services Division.

The advisory committee will provide recommendations on matters referred by Council.

The advisory committee will identify no more than five (5) key strategic priorities for driving economic growth, development and vitality within the City of Penticton as part of the South Okanagan Similkameen.

The advisory committee will:

• Provide advice to the Mayor and Council as requested • Implementation of the Economic Development Strategic Plan; • Review projects referred to Council for economic growth; • Provide connections and advice to help develop, attract and retain business and economic

activity; • Review matters relating to the procedures for the processing of applications and

development of new bylaws within the Development Services Division; • Review development statistics and industry trends and indicators; • Review and provide advice on proposed provincial or federal policies that effect the local

and regional economy, real estate development and provide advice to Council on the City’s position in relating to such policies.

The advisory committee will not participate in operational matters respecting the City of Penticton

10. Disqualification from Office

If an advisory member is continuously absent from committee meetings for a period of three (3) consecutive regularly scheduled meetings, unless the absence is because of illness or with the leave of the advisory members, Council may choose to replace the member. The person who held the office is disqualified from holding office on any advisory committee of the City of Penticton for a period of one year.

11. Should a Closed meeting be held by the advisory, members must keep in confidence, any information considered in any part of said meeting until such time as the information is released to the public as lawfully authorized or required. Should the municipality suffer loss or

damage due to contravention of confidentiality, the municipality may recover damages from the person(s) for the loss or damage.

• Closed Meeting – no meeting or part thereof shall be closed to the public except in accordance with Section 90 of the Community Charter.

12. The Mayor will sign all correspondence initiated by the committee on behalf of the City of Penticton.

13. For certainty, the rules and procedures of Council Procedure Bylaw No. 2018-35 and all amendments thereto shall be observed as far as may be applicable.

2020 Economic Prosperity & Development Services Advisory Committee Meeting Dates

Meeting commences at 8:00 a.m.

Council Chambers, City Hall, 171 Main Street (Second Level)

Month Date

January 10

February 14

March 6

April 3

May 8

June 5

July 10

August 21

September 18

October 23

November 20

December 11