DEVELOPMENT SERVICES
	TO:	Development Services Committee
	FROM:	John Wright, Director Building Standards Jim Baird, Commissioner Development Services
	PREPARED BY:	John Wright, Director Building Standards
	DATE OF MEETING:	September 9, 2003
	SUBJECT:	Compliance enquiry automation Pilot Project

RECOMMENDATION:

That the report entitled “Compliance enquiry automation Pilot Project” be received and endorsed.

PURPOSE:

To preserve the opportunity to obtain compliance with building code and zoning standards presented when a property is mortgaged or sold.

EXECUTIVE SUMMARY:

The “Compliance Letter Program” delivered by the Building Standards Department relies upon solicitors obtaining from us a certification of compliance for a particular property. These letters present a very welcome opportunity to resolve any outstanding orders or deficiencies because the role players are anxious to obtain our compliance certification. Since 1997, the number of compliance enquiries has dropped dramatically. Aside from the impact on revenues, this results in a serious loss of opportunity to achieve compliance and will require changes to our enforcement program that will increase workload and costs significantly.

The main reason for the drop in compliance enquiries is the introduction of title insurance. Instead of assuring the property complies, many solicitors are recommending their clients simply purchase insurance against any deficiency. Latent deficiencies will remain undetected indefinitely.

The subject initiative is an effort to work in partnership with a major title insurer to inform them of outstanding deficiencies. The program involves solicitors having access to AMANDA data through Internet links. If the pilot is successful, we will preserve a portion of the lost revenues but the main benefit will be the potential compliance opportunities. An additional benefit will be the opportunity to test a modest program of automated data sharing with very little risk.

BACKGROUND:

Compliance enquiries have dropped dramatically in recent years. At the current pace, the volume of enquiries and associated revenues will almost disappear in the next few years.

This trend is universal among municipalities and can be attributed to several factors - pricing, service levels and the advent of title insurance. Of these factors, title insurance is considered most influential to the trend.

Rather than try to compete with this service alternative, Building Standards Department staff contacted TitlePlus, a subsidiary of the Law Society to develop enhancements to our respective services that would be mutually beneficial. The subject proposal enables a solicitor who obtains title insurance from TitlePlus to also obtain compliance information from AMANDA. There would be a nominal ($3.00) charge for this transaction and when a deficiency is flagged, TitlePlus would require the solicitor to obtain a full compliance report directly from Markham. It is anticipated that once proved, the program would provide details of the deficiency making the compliance enquiry unnecessary.

OPTIONS/DISCUSSION:

The current trend indicating a preference among solicitors for title insurance is expected to continue. Virtually all revenue and the associated compliance opportunities will disappear. Enforcement of compliance relating to minor deficiencies including zoning non-compliance and non-life safety building code deficiencies is currently deferred until the property is mortgaged or sold. This is a convenience that allows us to close files and reduce workload significantly. Without the compliance opportunity presented by the demand for certification, we would be remiss in not obtaining compliance of these relatively minor deficiencies while the file remains active. This will require much more aggressive enforcement efforts and have the effect of increasing workload significantly. It is hoped with the subject program in place, these costs will be reduced.

The responsibilities of the respective participants and the agreed upon terms of the project are described in the attached letter.

FINANCIAL CONSIDERATIONS:

Development costs of $5,000 will be paid by the Town to CSDC for the necessary changes to AMANDA, and a maintenance fee of $1,000 for a total of $6,000. There will be some involvement of ITS staff to install the necessary components, assure the security of the data and to support the integration with AMANDA.

ENVIRONMENTAL CONSIDERATIONS:

None

ACCESSIBILITY CONSIDERATIONS:

None

ENGAGE 21ST CONSIDERATIONS:

This initiative will promote e-government by providing Internet access to a subset of AMANDA data.

BUSINESS UNITS CONSULTED AND AFFECTED:

Town Solicitor, ITS have been consulted for their input into this project.

ATTACHMENTS:

Document1: Agreed upon terms of the pilot project.

John C. Wright Director Building Standards

Jim Baird, M.C.I.P. , R.P.P. Commissioner of Development Services