Item - 2016.EX13.1

The Executive Committee recommends that:

1.  City Council adopt the Local Appeal Body Governance Structure in Attachment 1 to the report (February 24, 2016) from the City Manager.

2.  City Council direct that a separate Toronto Municipal Code Chapter be established for the Local Appeal Body substantially as provided for in Attachment 2 to the report (February 24, 2016) from the City Manager and authorize the City Solicitor to bring forward a By-law implementing the Local Appeal Body once the following activities have been completed to the satisfaction of the City Manager, in consultation with the City Solicitor:

a.  the Local Appeal Body Members including a Chair have been appointed by City Council;

b.  appropriate space has been secured, equipped and furnished, to accommodate the Local Appeal Body;

c.  orientation and training of Members and staff has been completed; and

d.  a draft Procedural By-law and draft policies, practices and procedures have been prepared for the Local Appeal Body's consideration.

3.  City Council approve a $500 appeal fee per appellant per hearing, to appeal a minor variance and/or consent decision of the Committee of Adjustment to the Local Appeal Body, and the City Solicitor be authorized to amend Toronto Municipal Code, Chapter 441, Fees and Charges concurrently with a By-law implementing the Local Appeal Body.

4.  City Council approve a Lease between the City of Toronto (as Tenant) and the Toronto Public Library Board (as Landlord) for premises at 40 Orchard View Boulevard, for use by the Local Appeal Body, substantially on the terms and conditions as set out in Attachment 3 to the report (February 24, 2016) from the City Manager, and on such other additional or revised terms and conditions as may be mutually agreeable to the Chief Corporate Officer and the City Librarian, in a form acceptable to the City Solicitor, with the Chief Corporate Officer administering and managing the Lease on behalf of the City, including the provisions of any consents, approvals, waivers and notices, including notice of termination, provided that the Chief Corporate Officer may, at any time, refer consideration of such matter to City Council for its determination and direction, and the Lease be subject to Toronto Public Library Board approval.

5.  City Council authorize the Court Services Division to provide administrative support to the Local Appeal Body and coordinate its implementation.

6.  City Council approve the transfer of the 2016 Operating Budget from the Non Program Account for the implementation of the Local Appeal Body of $1.536 million gross and $1.479 million net to the Court Services Operating Budget, as well as an increase in the Court Services approved staff complement by 6 permanent positions, increasing the complement from 282 to 288 positions.

7.  City Council approve the creation of a capital project entitled Local Appeal Body Facility Renovations with a total project cost of $1.577 million as part of the Court Services Capital Program with annual cash flows of $1.0 million in 2016 and $0.577 million in 2017; funded from a contribution to capital of $0.391 million and a contribution of $1.186 million from the Capital Financing Reserve.

8.  City Council authorize the City Manager, in consultation with the City Solicitor and the Director, Court Services, to prepare the necessary draft policies, practices and procedures to enable Local Appeal Body hearings for consideration by the Local Appeal Body prior to the commencement of its first hearing.

9.  City Council establish a Local Appeal Body Nominating Panel, composed of three citizen members appointed by City Council on recommendation of the Civic Appointment Committee, to short-list, interview and recommend candidates directly to City Council for appointment to the Local Appeal Body.

10.  City Council approve a one-year Mediation Pilot Project on a City-wide basis with respect to minor variance and consent applications and request the City Manager, in consultation with the Director of Court Services, to report to the Executive Committee one year after the implementation of the Mediation Pilot Project with an evaluation.

11.  City Council approve the transfer from the Non Program Account of the 2016 Operating Budget for the Mediation Pilot Project of $200,000 gross and net to Court Services Operating Budget.

At its meeting of June 30, 2015, Executive Committee considered a report from the City Manager, Implementation of a Local Appeal Body (LAB) for Toronto.  The Committee referred the report to the City Manager to report further on a number of additional matters including a review and consultation on establishing a mediation program related to Committee of Adjustment decisions prior to an appeal being heard by the appeal authority as well as an update on related legislative initiatives.  This report responds to Executive Committee's request.

Mediation Program

City staff undertook research and consultation with key stakeholders related to a mediation program for land use planning disputes related to minor variance and consent applications.  While research shows limited experience with using mediation for land use planning disputes, in general, mediation has been demonstrated to be an effective tool for resolving disputes between parties outside of the formal legal or adjudicative process.

Given the general benefits of mediation as a means of resolving disputes, a pilot program to test the impact of mediation with respect to appeals of Committee of Adjustment decisions is recommended.

Update on Legislative Initiatives

The Province of Ontario recently approved amendments to the Development Charges Act and the Planning Act through Bill 73: Smart Growth for Our Communities Act, 2015, including changes intended to improve the decision-making and effectiveness of Committees of Adjustment.  The Province has not yet announced an in-force date for these changes.

City Council requested a range of legislative amendments to the City of Toronto Act, 2006 that will impact the Local Appeal Body including authority for the City to dissolve or change a Local Appeal Body and recover the costs of a Local Appeal Body through the application planning process.  It is anticipated that legislative amendments to the City of Toronto Act (COTA) will be introduced in spring 2016.  It is unknown whether the Province will make the changes requested by City Council. 

Implementing a Local Appeal Body for Toronto

City Council at its June 2014 meeting, approved the establishment of a Local Appeal Body for Toronto to adjudicate Toronto-based appeals of Committee of Adjustment decisions pursuant to section 45 of the Planning Act (related to minor variances) and section 53 of the Planning Act (related to consents). The Ontario Municipal Board (OMB) would remain responsible for conducting hearings on appeals related to Official Plan and Zoning By-law amendments, site plan applications and decisions related to subdivisions.  If there are related appeals with the Ontario Municipal Board and the Local Appeal Body, the Ontario Municipal Board rather than the Local Appeal Body has jurisdiction to hear all matters.

As instructed by City Council, this report recommends the governance structure, administrative structure, office space requirements, as well as an appeal fee, needed to move forward with the implementation of Local Appeal Body.  The governance and associated implementation details are substantively the same as provided in the report to Executive Committee in June 2015 with the exception of the appeal fee.  City staff reviewed the appeal fee and recommend an appeal fee of $500 rather than $1000 to ensure reasonable access to persons seeking adjudication.

The implementation of the Local Appeal Body requires one-time operating costs ($0.561 million in start-up costs to equip and fit-out office space), $1.689 million gross and $1.517 million net in ongoing annual operating costs to operate the Local Appeal Body, as well as $1.577 million in capital costs for the construction of the office space and hearing rooms. 

In addition to the above costs, an additional $0.050 million will be required for a Mediation Pilot Project in the North York District that will address disputes on minor variance and consent applications.

Upon adoption of this report, implementation will commence including:

-  recruiting and appointing members and a chair to the Local Appeal Body;

-  securing and readying space for the Local Appeal Body to operate;

-  drafting required by-laws and policies for the Local Appeal Body's consideration; and

-  training and orientation of administrative staff and Local Appeal Body members.