Standardization of User Fees - Environmental Health Services

The Board of Health recommends

The Board of Health submits the following report (May 4, 1998) from the Medical Officer of Health:

Purpose:

In follow-up to City Council=s direction to standardize user fees for Environmental Health services to the highest level, this report seeks Board of Health and City Council approval of:

(1)A modified user fee schedule which takes into account several anomalies and potential problems; and

(2)authority to introduce the necessary Bill(s) in Council.

Financial Implications:

The proposed new user fee structure, as detailed in Appendix A, based on 1996 demand, is expected to generate revenue of approximately $390,000.00 per annum. This is an increase of approximately $184,000.00 or 89 percent over the approximately $206,000.00 that was generated in 1996, the most recent full year for which complete figures are available.

Recommendations:

It is recommended that:

(1)That the user fee schedule detailed in Appendix A of this report be adopted;

(2)that authority be granted to introduce the necessary Bill(s) in Council to give effect to recommendation 1 of this report;

(3)that the Public Health Department be directed to develop and implement a communication strategy to notify the various users of these services of the user fee adjustment; and

(4)that the new fee structure come into effect on July 2, 1998.

Background:

There is little uniformity between the former six public health jurisdictions in the type of non-mandated services for which fees are charged and the amount of fees that are charged for these services through a user fee system. These services include requests for file search of property purchase and mortgage clearances, approval of the Health Department=s portion of the liquor license approval process, body shipments (shipment of human remains) and disinterments and hot dog cart inspections and licenses. The current fee structure is outlined in Appendix B.

There is also lack of uniformity in how such fees were introduced or amended. In the Borough of East York and Cities of North York, Scarborough and York, user fees were introduced or amended based on Board of Health policy. In the Cities of Toronto and Etobicoke, by contrast, user fees were governed by by-laws.

The Public Health Department=s 1998 Preliminary Operating Budget submission (Section E, Point 1.1), presented at the February 23, 1998 meeting of the Board of Health, indicated that user fees for these environmental health services should be standardized to the highest level currently charged. The standardization of these user fees to the highest level was approved by City Council at its meeting on March 4, 5 and 6, 1998. This report outlines several anomalies and potential problems that may occur and recommends a modified user fee schedule which takes these into account.

Comments:

The Public Health Department proposes to standardize the type of environmental health services for which fees are charged and the amounts charged as outlined in Appendix A. The services listed are not mandated by the provincial Ministry of Health Mandatory Health Programs and Services Guidelines (December 1997) and are only performed at the request of the client.

 The proposed standardization attempts to rectify some problems involving different services and different users fees that have plagued the existing system for some years:

(1)It provides equity and a level playing field in the form of standardized fees across Toronto.

(2)It eliminates significant imbalances in workload created by applicants making service demands in the jurisdiction with the lowest fee.

(3)It is more reflective of the cost of providing the service.

The standardization of services and corresponding fees, as detailed in Appendix A, based on the level of demand in 1996, has the potential for generating $390,000.00 revenue per annum, $184,000.00 of which is new and represents a 89 percent increase in revenues. This number is dependent on the level of demand for these services.

There are several anomalies and potential problems associated with standardizing the services and levelling up the user fees for such services across the six former municipalities. For example, the service category Request for Reinspection of Outstanding Deficiencies only exists in the former municipality of Scarborough and, if approved, will represent a new service in the remaining five former municipalities.

There is a significant difference in how the former municipality of Etobicoke handles the service category Hot Dog Cart License Approval and the amount of fee that is charged for that service. In Etobicoke, that service category includes a license that is issued by Public Health. That is unique among the six former municipalities. As a result, the user fee for the service category Hot Dog Cart Approval in Etobicoke is $399.00. In the remaining five former municipalities, the user fee for the public health inspection that is required for a license issued by the Metro Licensing Commission is $150.00. In the interest of equity, it is recommended that the user fees for the service category Hot Dog Cart Inspection be standardized in the (new) City of Toronto at $150.00. The change from the current $399.00 to $150.00 will require that those sections of the Etobicoke By-law on Administrative Fees (Chapter 91-15) that deal with licensing of hot dog carts be rescinded.

A similar anomaly exists with the service category Lodging House Inspection/License for which the former municipality of Etobicoke charges $350.00 for a new license and $200.00 for annual renewal. This service category also includes a license that is issued by Public Health. This service is currently provided by other Departments in the other Districts. It is recommended that this service category be reviewed in the context of what other departments are currently providing in the form of inspection and/or approval services for these establishments.

To support these changes, the Public Health Department will undertake a communication strategy to notify the various recipients of these services. It is also recommended that the by-law, which is required to enact these changes, contain a provision for annual inflationary adjustments. These changes are to come into effect on July 2, 1998.

The new fee structure, as outlined in Appendix A, will require legislative changes. The legislation that governs user fees in the former jurisdictions is detailed in Appendix C.

Conclusion:

The proposed new fee structure represents a small change in the Scarborough district, but a significant increase for fees in the East York, Etobicoke, and York districts, and to a lesser extent the Toronto and North York districts. The proposed fee schedule will provide equity in user fees across Toronto, redistribute the demand for service to the local area and be more reflective of the actual cost of providing the service.

Contact Name:

Fred Ruf, Director of Environmental Health, North York Office, E-mail: ENV-FR,

Tel: (416) 395-7632, Fax (416) 395-7691.

The Board of Health reports, for the information of Council, having also had before it during consideration of the foregoing matter, the following appendices and communications, copies of which are on file in the office of the City Clerk:

-Appendices A to C referred to in the foregoing report (May 4, 1998) from the Medical Office of Health; and

-(undated) Notice of Motion moved by Councillor Filion.