A natural gas distributor applied to quash a municipal by-law imposing a pavement degradation fee on entities excavating city roads, arguing the fee was ultra vires under the City of Toronto Act, 2006 and O. Reg. 595/06.
The applicant contended the fee impermissibly targeted gas distributors, was unrelated to permit issuance costs, and improperly related to the transportation of natural resources.
The municipality argued the fee formed part of a broader regulatory scheme governing road excavation and utility cuts and was authorized as a permit-related charge.
The court applied a broad and purposive interpretation of municipal powers and held the fee was reasonably connected to a regulatory scheme managing road infrastructure and excavation permits.
The application to quash the by-law was dismissed.