The Feasibility of Eliminating Garage Sale Permit Fee (K. Krushell)
The Feasibility of Eliminating Garage Sale Permit Fee
(K. Krushell)
Recommendation:That the September 24, 2008, Planning and Development Department report 2008PDD046 be received for information.
Report Summary
This report provides a response to an inquiry regarding garage sale permits and fees.
Previous Council/Committee Action
At the July 16, 2008, Executive Committee meeting, Councillor
K. Krushell made the following inquiry:
I was contacted by a constituent who was frustrated with the fact that he is not allowed to put up a sign to advertise his garage sale because the City will fine him, and yet at the same time he still has to pay $19 to obtain a garage sale permit. He was particularly frustrated because he was under the impression that such a fee is not being charged in other Canadian cities.
In discussion with Planning and Development Department, it was suggested that a Council Inquiry on this issue would be the appropriate action to take, and that this would provide relevant information for City Council to consider options for eliminating the fee.
It would be appreciated if Administration could provide the following information:
- How many garage sale permits are issued per year?
- How much revenue is generated from this fee?
- What are the administrative costs associated with the processing of the fee?
- Does Bylaw Services enforce the requirement for garage sale permits? If so, how effective is it and does this cost anything?
- What was the original reason for City Council to introduce a garage sale permit fee? If the reason was to limit the number of garage sales, can this be addressed in another way?
- If Council were to decide to eliminate the garage sale permit fee requirement, what steps would need to be taken to do this?
I would request that the report on this come back to the September 24, 2008, Executive Committee meeting.
Report
1. How many garage sale permits are issued per year?
· On average, the City issues 5700 garage sale permits each year. Anecdotal estimates suggest that only 50 to 70 percent of garage sale holders actually purchase a permit for the activity.
· Permits may be purchased for a fee of $19 and are available through the Edmonton Journal, Edmonton Sun, Bargain Finder, Edmonton Examiner, City Pound Facility, and the downtown Planning and Development Department office.
2. How much revenue is generated from this fee?
· Annual revenues from garage sale permit fees are approximately $108,300.
3. What are the administrative costs associated with the processing of the fee?
· Administrative costs include staffing at two walk-in customer service locations and two call centres; clerical support functions such as data entry and program updates and administration; and cash handling/accounting processes.
· In addition to the permit service provided at City facilities, third party service providers including the Edmonton Journal, Bargain Finder, Edmonton Sun and Edmonton Examiner also issue permits on behalf of the City and data transfer, reconciliation, and auditing costs are incurred.
· In addition to the administrative costs associated with the processing of garage sale permits and fees there are a number of other costs. These include the costs associated with POSSE and database management, software upgrades and yearly fee update requirements.
· The overall administrative cost associated with the processing of garage sale permits and fees through City facilities, with associated IT Services and third party service providers is difficult to measure accurately. While a complete financial cost audit of the permit process was not undertaken, a Department review found that costs estimates for processing all the garage sale permit fees was at least equal or exceeded the annual revenues generated by the permit fee itself.
4. Does Bylaw Services enforce the requirement for garage sale permits? If so, how effective is it and does this cost anything?
· The City of Edmonton’s Community Standards Branch enforces garage sale permit requirements. Those efforts have been limited, costly, and generally ineffective.
· The permit sales broad distribution and reporting processes creates a lag time for data input and makes it difficult for enforcement officers to obtain real-time permit information in order to substantiate an offence.
· In order to maintain the highest community standards possible, bylaw services must be selective in their enforcement efforts and focus on public safety and priority issues. As such a targeted effort addressing garage sale permit regulations is considered a low priority.
· The current approach to garage sale permitting and regulation is onerous and is of a low priority with limited resources. Research shows that no other major municipality charges a fee for garage sale privileges (see Attachment 1).
5. What was the original reason for City Council to introduce a garage sale permit fee? If the reason was to limit the number of garage sales, can this be addressed in another way?
· Garage sale permit fees were advanced to City Council as a “lost leader revenue strategy” in the early 1990’s.
· Council’s intent was to place restrictions on the number of days of the week and/or garage sales per year at any location.
· The Department supports the intent to restrict the number of garage sales per location to a reasonable number each year.
· Restrictions on garage sales however can be established through a minor amendment to the Business Licence Bylaw #13138.
6. If Council were to decide to eliminate the garage sale permit fee requirement, what steps would need to be taken to do this?
· To eliminate the garage sale permit fee, direction would be given to the Law Branch to bring forward an amending bylaw to remove the garage sale category and fee from the Business Licence Bylaw.
· The Planning and Development Department in consideration of cash handling, POSSE, enforcement and other administrative costs coupled with customer inconvenience, would not be opposed to the elimination of garage sale permits.
Budget/Financial Implications
If garage sale permit fees were eliminated there would be an offsetting revenue budget adjustment.
Legal Implications
The Law Branch has indicated that restrictions on the number of garage sales allowable per year can be accomplished through a minor bylaw amendment. The elimination of the garage sale category and fee may also be accomplished through the same amending bylaw.
Attachments
- Current Action by Other Municipalities In Relation To Garage Sale Regulation.
Background Information Available on Request from the Department
- City of Calgary, Bylaw 29M97, Temporary Signs on Highways Bylaw
- City of Red Deer, Land Use Bylaw 3357/2206, Part Three: General Regulations Applicable to All Districts
- City of Winnipeg, Zoning Bylaw 200/2006, Part 4, Section 124, Permit Exemptions
- City of Victoria, Zoning Bylaw, Part 1.2 - R1-B Zone, Single Family Dwelling District
- City of Toronto Municipal Code, Chapter 480, Garage Sales
6. City of Vancouver
Page 3 of 3
Attachment 1
Current Action by Other Municipalities in Relation to Garage Sale Regulation
Presently, Edmonton seems to be one of the only municipalities which charges citizens for the right to hold garage sales. The following is a very brief summary of what other municipalities’ positions are on this issue:
City of Calgary:
Currently the only applicable legislation is that of generalized temporary sign regulations. Their “3-1-1” staff have been scripted to advise the public that “three or four” garage sales per year are allowable and beyond that the operation would be considered an unlicensed business.
City of Red Deer:
Garage sale signs are regulated in terms of size, duration of placement, quantity per event, and placement. There is also a legislative restriction of only three garage sales per year.
City of Winnipeg:
Legislation dictates that citizens are allowed to hold garage/yard sales on two weekends per year, for a maximum duration of three days each.
City of Victoria:
The City of Victoria restricts garage sales, to a maximum of two, annually, via the Zoning Bylaw. Signage is not permitted on public property; therefore any signs related to garage sales are impounded.
City of Vancouver:
The City of Vancouver has no requirement for garage sales to obtain permits however there is a City policy in place which restricts the activity to two garage sales per year per address. When that policy is violated, they treat the operation as an unlicensed business or non-permitted land use issue.
City of Toronto:
Specific legislative restrictions are provided that only allow two garage sales per year, with a maximum duration of two days per sale. There is also a definition of what type of property may be sold in those sales.
Page 1 of 1 Report: 2008PDD046 Attachment 1