Review of Conservation Authority Fees for Planning and Permitting Activities by the Conservation Authorities Liaison Committee October 2012 Table of Contents 1. History of the Conservation Authorities Liaison Committee 2. Mandate and Goals 3. Background: MNR Policies and Procedures for Charging of Conservation Authority Fees 4. Environics Research Group report 5. Summary of Input to Conservation Authorities Liaison Committee 6. Overview of Discussions and Comments 7. Conclusions 8. Appendix A. MNR Policies and Procedures for Charging of Conservation Authority Fees, 1997 1. History of the Conservation Authorities Liaison Committee In 2007, the provincial government created the Conservation Authorities Liaison Committee (CALC) in response to perceived lack of clarity on conservation authority roles and responsibilities in plan review and permitting approvals. The Committee brought together representatives from the building industry, the province, municipalities, conservation authorities, Conservation Ontario and environmental organizations and tasked them with clarifying the role of conservation authorities in the municipal planning process and in the issuance of permits under Section 28 of the Conservation Authorities Act (CA Act). The Committee proposed new guidelines, the ‘Policies and Procedures for Conservation Authority Plan Review and Permitting Activities’, to outline a consistent approach to the permitting function undertaken by conservation authorities under the Conservation Authorities Act and to suggest serviceoriented improvements to the permitting process pertaining to pre-consultation, complete permit applications, permit decision timelines, and administrative review mechanisms. The ‘Policies and Procedures for Conservation Authority Plan Review and Permitting Activities’ was finalized and approved by the Minister of Natural Resources in May of 2010. In June, 2010, CALC reconvened with a new role as an “advisory group” for the Minister of Natural Resource (MNR). The terms of reference was revised to reflect the shift in CALC’s focus from consensus body to an advisory role related to conservation authority matters. CALC was to facilitate dialogue amongst the members and the sectors they represent and to present advice to government. This dialogue would clarify interrelated roles and promote efficient delivery of provincial and municipal (local) interests in land use planning, clarify the relationship of the Conservation Authorities Act to other legislation, and identify priorities for further action. 2. CALC Mandate and Goals for CA Fees Review The Minister asked the MNR to conduct a review of conservation authority fees by the fall of 2010. Based on the report findings, MNR would consider the need to update existing policies and procedures or options to address identified issues related to fees. Goals: MNR’s goals for the ‘Review of Conservation Authority Fees’ were to: Measure compliance of each conservation authority’s fee administration with MNR’s ‘Policies And Procedures for the Charging of Conservation Authority Fees’, part of MNR’s Conservation Authority Policies and Procedures Manual, as related to fee schedule establishment, criteria for determining fees, transparency and public notification, appeals process and governance. • Assess consistency across the province for services for which conservation authorities are charging fees, in terms of amount of fee, coordination with municipal services and fees, structure and establishment of fees, transparency, and accessibility of appeal processes. • Assess fairness and transparency of conservation authority fee structures and governance. 3. Background: MNR Policies and Procedures for Charging of Conservation Authority Fees In January, 1996, the province amended the Conservation Authorities Act to enable conservation authorities to collect fees for services as approved by the Minister. Conservation Authorities Act Section 21 (1)(m.1) states that “For the purposes of accomplishing its objects, an authority has power to charge fees for services approved by the Minister.” The Minister sets out which services conservation authorities may charge fees for but does not approve individual conservation authority fee schedules or amounts. These are approved by the conservation authority boards. The ‘Policies and Procedures for the Charging of Conservation Authority Fees’ outlines specific policies for the conservation authority to use when establishing fees (a copy is enclosed in Appendix A). MNR reserves the right to audit conservation authorities for adherence to the Policies and Procedures outlined in the Manual. The ‘Policies and Procedures’ outlines the following services for which fees can be charged: Section 28 permit fees Plan review Response to legal, real estate and public enquiries Extension services (e.g., technical advice/implementation of erosion control measures, forest management/tree planting, wildlife/fisheries habitat management, management of forests/recreational land owned by others, technical studies) Community relations/information/education services (e.g., tours, presentations, workshops, demonstrations, special events) Sale of products (e.g. reports, maps, photographs) 4 Any services under other legislation (e.g., EPA, LRIA, PLA) authorized under agreement with the lead ministry This is provided the service is not supported through provincial grant funding. Each conservation authority must develop written policy or add to its Administrative Resolutions, a fees administration guideline which includes: A fees schedule A process for public notification about new or changes to existing fees schedule A clearly defined review and revision process A process for appeal of fee structures. For planning and permitting services, fee structures should be designed to cover but not exceed the costs associated with administering and delivering the services. Fees should be developed in a manner that does not deter applicants from receiving due process. Conservation authorities should consider the following when developing fee schedules: The fees of neighbouring conservation authorities, to promote consistency Nature and level of fees charged by local municipalities and other agencies and ministries for related services to prevent duplicative fee structures and to promote consistency in fee schedules Complexity of applications and the level of effort required to administer the application. 4. Environics Research Group report - Review of Conservation Authority Fees In the fall of 2010, MNR commissioned Environics Research Group to research conservation authority fees charged for planning services and permitting. The review excluded fees charged for other types of services such as recreation, education programs and the sale of products. Environics Research Group developed and administered a 25-question survey of all conservation authorities to collect information regarding their policies and procedures related to fees and fee administration. All 36 conservation authorities participated in the survey. The analysis of conservation authority fees included the following: A summary of the guidelines in the “Policies and Procedures for the 5 Adherence by conservation authorities to the MNR guidelines Comparisons of conservation authority adherence based on geography Comparisons of conservation authority adherence based on size (i.e., budget and number of staff) Observations and Recommendations The ‘Review of Conservation Authority Fees’ report was completed in June 2011. The survey indicated there is general compliance by conservation authorities with the MNR fee guidelines. The report provided the following recommendations: • • • • • • All conservation authorities should have a written set of fee guidelines to allow for more transparency in the review and revision of fees. Those conservation authorities that do not have an online Fee Schedule should increase public accessibility to fees by making their Fee Schedule available online. There should be more consistency in the naming of plan review and permitting services, which would allow for easier comparison of fees. All fee and fee policy reviews should involve public consultation with stakeholders to increase the transparency of fees and allow for more public input. There should be an effort to make comparisons to both local municipalities and neighbouring conservation authorities’ fees The appeals process, be it formal or informal, should be communicated to the public. 5. Summary of Input to the Conservation Authorities Liaison Committee CALC heard many formal presentations from CALC members on various aspects and perspectives related to fees for the review of development applications and conservation authority permits. The presentations served as a starting point for discussions and education on members’ viewpoints. It resulted in the sharing of information and a better understanding of the issues by all members. Presentations included: MNR presentations: ‘Policies and Procedures for the Charging of Conservation Authority Fees’ and the ‘Review of Conservation 6 Regional Municipality of Durham presentation: Durham Region Partnership Agreements with Conservation Authorities Conservation Ontario presentation: Conservation Ontario and Conservation Authority Representatives, Best Management Practices. Ontario Home Builders’ Association, Hamilton-Halton Home Builders’ Association and Building Industry and Land Development: Conservation Authority Fees Conservation Ontario/MNR presentation: Conservation Authority Revenue Sources and Expenditures. Upper Thames River Conservation Authority, Toronto and Region Conservation Authority, Kawartha Region Conservation Authority and Cataraqui Region Conservation Authority: Local Conservation Authority funding/ fees examples. Toronto and Region Conservation Authority presentation: Overview of Toronto and Region Conservation Authority Planning and Permit Administration Cost Recovery. Ontario Home Builders’ Association and Hamilton-Halton Home Builders’ Association and Building Industry and Land Development presentation: Toronto and Region Conservation Authority/Vaughan Case Study. Regional Municipality of Durham Region presentation: Municipal Fee Structure. 6. Overview of Discussions and Comments Over the course of the discussions and input, the following three themes emerged and were used to frame the discussions: • • • Process for Review or Revision of fees Eligible Costs and Services and Process for Mediation of Fee Disputes The points below outline for each theme the main comments expressed during discussions by the Committee. Process for Review or Revision of fees: • • A clear accountable and transparent methodology for setting fees should be established. A consistent schedule of applicable development services and categories for which fees can be charged across all conservation authorities. 7 • • There should be an explanation of what services are supported through provincial grants, municipal levies and municipal service agreements. Implement regular review of fees to ensure: • No duplication of fees between the various types of planning applications. • Rationalized and justified measure of fees by category. • Annual reports by conservation authorities that are published by category. • Stakeholder consultation on fees: • Should include a background study that summarizes and explains the financial requirements for the fees and distinguishes between other funding sources. • There should be an opportunity to comment on background study. Eligible Costs and Services: • • • • • • There was general agreement on many principles and eligible costs associated with fee administration. Conservation authorities may strive for up to 100% full cost recovery for development generated applications and services. However, the percent is set by each CA Board. There is a need to demonstrate that fees charged are relevant to the application and costs not supported through provincial grant funding or levy. Conservation authority fees should not exceed the costs of delivering the services. Plan review costs should be split into a consistent schedule of categories across all conservation authorities. Fees established at time of application should not be altered/changed later in the application review process unless application is significantly revised by the proponent. Process for Mediation of Fee Disputes: There was consensus within CALC that the process for the mediation of fee disputes should be open and transparent and include the following elements: the applicant should be able to request an administrative review of the fee by the Conservation Authority General Manager or Chief Administrative Officer and if not satisfied, then by the Conservation Authority Board of Directors or a SubCommittee designated to hear fee-related matters. 8 In addition to the above, the representatives of the building and development industry on CALC recommended inclusion of a process for fees mediation to an independent third party. The fee dispute mediation process could include the elements above and, if the applicant was not satisfied with the Conservation Authority Board of Directors’ decision, then the applicant could request an appeal to an independent third party body such as Ontario Municipal Board or the Mining and Lands Commissioner. There was not consensus at CALC on the appeal of fees disputes to a third party. MNR will not seek any legislative changes to the Conservation Authorities Act at this time for a formal fee appeal mechanism but will continue to follow this matter closely over the next years. 7. Conclusions The information gathered as part of the ‘Review of Conservation Authority Fees’ allows MNR to better assess and monitor ongoing compliance of conservation authorities with provincial ‘Policies and Procedures’. In addition, the insights gained through the CALC process may be used to provide additional guidance for conservation authorities in setting fee amounts, policies and appeal processes to improve transparency and clarity and promote consistency across the province. The presentation materials from the CALC members on review of fees are available from MNR and could further support conservation authorities in better developing, updating and implementing their fees policy 9 APPENDIX A POLICIES AND PROCEDURES FOR THE CHARGING OF CONSERVATION AUTHORITY FEES 1.0 BACKGROUND Conservation Authorities have become more business like in the delivery of their programs and services to achieve greater program self-sufficiency. Prior to 1996, the Conservation Authorities Act addressed the charging of fees for the use of Conservation Authority owned land and facilities. Fees for services, however, were not recognized in the legislation. In January, 1996, a provincial Omnibus Bill was passed which amended the Conservation Authorities Act to empower Conservation Authorities to collect fees for services approved by the Minister. This document addresses the policies and procedures under this new provision. 2.0 LEGISLATION 2.1 Section 20 of the Conservation Authorities Act describes the objects of a Conservation Authority, which are to establish and undertake, in an area over which it has jurisdiction, a program designed to further the conservation, restoration, development and management of natural resources. Section 21 of the Conservation Authorities Act lists the powers which Conservation Authorities have for the purpose of accomplishing their objects. Subsection 21(m.1) gives Conservation Authorities the power to charge fees for services approved by the Minister. 3.0 DEFINITIONS 3.1 Minister - Minister of Natural Resources 3.2 Charging of Conservation Authority Fees - Charging of user fees for services rendered by a Conservation Authority. This does not include the generation of revenue through undertaking of activities on Conservation Authority owned land, as supported by Section 29 of the Conservation Authorities Act. 4.0 POLICY PRINCIPLES 10 4.1 Conservation Authorities are entitled to set rates, charge and collect fees for services rendered. 4.2 Conservation Authorities are encouraged to make programs and services more self-sufficient by applying the user-pay principle. 5.0 POLICY 5.1 Pursuant to Section 21(m.1) of the Conservation Authorities Act, Conservation Authorities may charge fees for the following services: . Section 28 permit fees . Plan review . Response to legal, real estate and public enquiries . Extension services (e.g., technical advice/implementation of erosion control measures, forest management/tree planting, wildlife/fisheries habitat management, management of forests/recreational land owned by others, technical studies) . Community relations/information/education services (e.g., tours, presentations, workshops, demonstrations, special events) . Sale of products (e.g. reports, maps, photographs) . Any services under other legislation (e.g., EPA, LRIA, PLA) authorized under agreement with the lead ministry This is provided the service is not supported through provincial grant funding. 5.2 5.3 Each Conservation Authority must develop written policy or add to its Administrative Resolutions, a fees administration guideline which includes: . A fees schedule . A process for public notification about the establishment of or any proposed changes to any fees schedule . A clearly defined review and revision process . A process for appeals for fee structures proposed or in place For planning, and compliance-oriented activities such as regulatory or permitting services, the Conservation Authority fee structures should be designed to recover but not exceed the costs associated with administering and delivering the services on a program basis. Fees for planning services should be designed and administered in conjunction with the appropriate planning authorities, in accordance with Section 69 of the Planning Act. 11 5.4 Conservation Authority fees should be determined in such a manner as to not deter applicants from receiving due process. 5.5 When developing fee schedules, Conservation Authorities should consider: 6.0 . the fees of neighbouring Conservation Authorities to promote consistency . the nature and level of fees charged by local municipalities, and other agencies and ministries for related services to prevent duplicative fee structures and to promote consistency in fee schedules . setting fees dependent on the complexity of applications and the level of effort required to administer the application. REVENUES Revenues generated through charging of fees as applicable under this policy, are subject to the provisions of the MNR Policies and Procedures for the Treatment of Conservation Authority Generated Revenue. 7.0 PROCEDURES MNR reserves the right to audit Conservation Authorities for adherence to this policy. 12