HomeMy WebLinkAboutTR-33-98
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting:
Date:
GENERAL PURPOSE AND ADMINISTRATION COMMITTKEile # .f'r:J 9
Res. # C;p A .- .:J.Co5/ q'l?:
Report #:
Subject:
May 4, 1998
File #:
TR-33-98
By-law #
nEVlu.oPMENT t:HARC.E~ POT.Tt:V RV.PORT / t:ON~TTT.TANT~
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee recommend
to Council the following:
1. THAT Report TR-33-98 be received,
2. THAT the firms of Cam Watson & Associates and Hemson Consulting be invited to submit
bids based on the terms of reference identified as attachment #3,
3. THAT paragraph 5.06 of the purchasing by-law #94-129 be waived for this transaction,
4. THAT the Chief Administrative Officer be authorized with the appropriate staff to select the
appropriate firm to perform the required work to assist the municipality in preparation of the
Development Charge background study, Policy Report and by-law, and
5. THAT the Clarington Hydro Electric Commission be invited to participate in the process on
a pro rated cost sharing basis.
1.0 BACKGROUND:
1.1 In November, 1996, the Provincial Government introduced the new development charges
legislation, Bill 98. It received Royal Ascent on December 8, 1997, and the Act along with
Regulation 82/98 came into force on March 1, 1998.
1.2 All municipalities have an 18 month transition period until August 31, 1999, to complete a
development charges study and to adopt a new Development Charges By-law. Failing that,
municipalities cannot collect development charges.
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TR-33-98
Page 2
2. PURPOSE:
The purpose of this Report is to advise Council of the course of action that will be required
in order to develop a new Development Charges By-law. A copy (Attachment #1) of a
preliminary summary of the major steps involved in the process prepared by Cam Watson &
Associates for a recent seminar is attached. It is evident that the new legislation process is
significantly more detailed and complex than the previous one.
3.0 MAJOR FEATURES OF BILL 98:
3.1 Attachment #2 is a copy of a Cam Watson analysis of the services covered and contribution
required. The major points are identified below.
3.2 The following services are eligible for full recovery of the growth related cost through
Development Charges:
. water supply services
. sanitary sewer services
. storm water drainage and control
. roads
. electric power
. police services
. fire protection
3.3 A 10% reduction in the capital cost of eligible growth related costs for the following services
is required:
. costs to acquire, lease, construct or improve buildings
. recreational facilities (including cost of land for site and parking access)
. park development
. library services (including materials for circulation)
. homes for the aged
. rolling stock with useful life of 7 years or greater
. furniture and equipment (other than computers)
. costs to acquire land (except parkland)
. costs to undertake related studies
. interest on money borrowed for related capital
3.4 Municipalities are not allowed to include the following as eligible services:
. waste management services
. computers and rolling stock with a useful life less than 7 years
. cultural and entertainment facilities, including museums, theatres & art galleries
. tourism facilities
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hospitals
headquarters for municipal administration and local boards
acquisition of land for parks
3.5 With respect to service level, the maximum allowable charge for soft services will be based
on an AVERAGE service level in the preceding 10 years, not the highest. The quantity and
quality of service standards must be considered in setting service level standards. Excess
capacity or the oversizing of facilities must be determined and removed from eligibility, and
the benefit to existing development must be calculated. The new legislation requires much
more indepth analysis for financial and for development forecast projections. It requires
determination of the amount, type and location of anticipated development.
3.6 Rules for calculating charges are stipulated, including the requirement for a development
charge background study. The cost of the study is considered an eligible service and is
recoverable in a manner to those services identified in the study. In other words, a
percentage of every development charge payable by the developer will be placed in a reserve
account to be used specifically for study purposes.
4.0 DEVELOPMENT CHARGES BACKGROUND STUDY:
4.1 Municipalities are given an 18 month period to complete the study and adopt a new by-law.
The background study is mandatory and it requires that each service identified, be examined
for the long term capital infrastructure and operating costs. The study will be extensive and
must be done after the service has been identified.
4.2 The extensive requirements of the background study, the policy report and the by-law cannot
reasonably be accommodated with the limited human resources in-house and given all the
additional responsibilities due to provincial legislative changes in other areas; Assessment,
Municipal Act, etc. Consequently, it is recommended that the Municipality invite bids and
submissions from the two known firms that are currently utilized by the Province and
professional associations to develop and analyze this legislation; Hemson Consulting and Cam
Watson' and Associates.
4.3 The Municipality's prior Development Charge Policy Report was developed usmg Cam
Watson and Associates initially and refined by Municipal Staff into the final 1992
Development Charge Policy Report. The majority of the area municipalities and the Region
of Durham have already committed to Cam Watson for provision of the required work. It is
recommended that the Municipality of Clarington also hire consultants to provide consulting
and thereby also reduce the opportunity for challenge as to the methodology applied.
4.4 The Chief Administrative Officer has established a Committee consisting of Department
Heads to which Development Charges relate, the Executive Director for Library Services and
the Manager of the Clarington Hydro Electric Commission.
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5.0 TERMS OF REFERENCE:
5.1 The Director of Planning has drafted the attached terms of reference to complete the required
works for compliance with the legislation. (see Attachment #3)
5.2 It is proposed that the two known major firms who are familiar with the legislation, the
industry complications and the municipal requirements as a result of the extensive work they
have done with the Province and the industry, be invited to make submissions to the terms
of reference.
5.3 In consideration of the time constraints and the extensive amount of work required, it is
recommended that the Chief Administrative Officer and the Committee make the selection
based on the cost, expertise of the individuals who will be performing the work on behalf of
each firm, and the commitment to completion time. The cost to complete the process will
depend on the complexity of the work required and it is anticipated that it may be anywhere
from $50,000 to $100,000 . It will be eligible for funding, as allowed, from development
charges, however, it is suggested that time commitments will be as critical in the analysis
as cost. There will be a significant degree of staff time involved with the development of the
capital plan and the analysis. It is recommended that a representative amount be charged
to the appropriate Development charge Reserve fund for staff time.
Respectively Submitted,
Reviewed by,
~~
1 . Marano, H.BSc.,A.M.C.T.
Treasurer.
W.H. Stockwell,
Chief Administrative Officer
cJ y~- tASJu_
Franklin Wu, M.C.I.P., R.P.P.
Director of Planning
and Development
~1./~
Stephen A. Vokes, P.Eng.
Director of Public Works
MAM/pp
Attachments:
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1.1 THE PROCESS OF CALCULATING A DEVELOPMENT
CHARGE UNDER THE NEW ACT THAT MUST BE FOLLOWED
5.
Anticipated Attachment 111
Development ru
I
Tax Base, 13 Ineligible Services
~
User Rates, ~
Etc
Estimated Increase in Need For Ceiling Re:
Service -
ru bcreased Need flS ~
bdivision 1.8 Specified Local Services I
eements l\:ceds That Will
d Consen t .... Be Met
"'"
rovisions r 1.6
DC Gross Costs By Service I
[1:9' Examination of the Long Term
Capital and Operating Costs I--
For Capital Infrastructurfu
1.7
0) Less:
--p Uncommitted Excess Capacity
ruo
(3) Less: Devp~1
Benefit To Existing
11.111
0 Less:
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Grants, Subsidies and i
Other Contributions [U2
0 Les, I
10% Where Applicable I1.i3
DC
Net Capital Costs
. Costs for new development vs. existing
development for the term of the bylaw and_ - I
Financin~ Inflation the balance of the period rL14
and Investment .. DC Bylaw(s)
Considerations Spatial Applicability rus I
fLl6 1.15
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Amount of the Charge
By Type of Development
(including apportionment of costs - Consideration of exemptions,
residential and non-residen~
1.17 phase-ins, etc.
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Attachment #2
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CATEGORIES OF MUNICIPAL SERVICES
AND THE PERCENTAGE OF COSTS ELIGIBLE FOR IX FUNDING
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CA TEGORIES OF DC
"lUNICIPAL SERVICES % SERVICE COMPONENTS
I>crn\fCIJV
1 """rvices ReI.lled to ~ Highway 100 1.1 Arterial roads
100 1.2 Collector roads
100 U Local roads
100 1.4 Traific signals
100 1.5 Sidewalks and streetlights
2 Other Tr~nsportation Services 90 2.1 Transit vehicles
90 2.2 Other transit inirastructure
90 2.3 Municipal parking spaces - indoor
90 24 Municipal parking spaces - outdoor
lOO 2.5 Depots and domes
100 2.6 Rolling stock'
90 2.7 Ferries
90 2.8 Airport space
3 Storm Water Drainage and lOO 3.1 Main channels and drainage trunks
Control Services 100 3.2 Channel connections
100 3.3 Retention! detention ponds
4 Fire Protection Services 100 4.1 Fire stations
100 4.2 Fire pumpers. aerials, tankers and rescue vehides
100 4.3 Small equipment and gear
5 Outdoor Recreation Services 0 51 Acquisition of land for parks, woodlots and ESAs
(i.e. Parks and Open Space) 90 52 Development of 10<:;.1 park.s
90 5.3 Development of district park.s
90 54 Development of municipal-wide park.'
'10 S5 Development of Illunicipal ("th'!r) p.lrKs
90 5.6 Parks rolling stock' and yards
" Indoor Recreation Services 90 6.1 Arenas, indoor pools, fitness facilities, community cenffi.'o;. ete
90 6.2 Recre~tiun vehicles and equiplllent'
7 Library Services 90 7.1 Public library space (ind. furniture and equipment)
90 7.2 Library materials
S Other Services . 8.1 Studies in connection with acquiring buildings. rolling stl.x:k.
materials and equipment, and improving land and faciht"-,,,.
including the DC background study cost
. 8.2 Interest on monev borrowed to oav for growth-rel~k'Ci '-.In,tal
4 EIL'C.tTical Power Services 100 9.1 Electrical substations
100 9.2 Electrical distribution system
100 93 Electrical system rolling stock'
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10 Provision of Cultural. 0 10.1 Cultural space (e.g. art galleries, museums and theatre:,;l
Entertainment and Tourism 0 10.2 Tourism facilitieS and convention centres
Facilities and Convention
Centres
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1with 7+ year life time
"same percentage as service component to which it peruins
computer equipment excluded throughout
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Attachment 1t3
TERMS OF REFERENCE
DEVELOPMENT CHARGES BACKGROUND STUDY
MUNICIPALITY OF CLARINGTON
TABLE OF CONTENTS
1 . INTRODUCTION............................... .......................................................................2
2. SCOPE OF STU DY AN D PROCESS............................................................ ................2
3. MEETI NGS WITH STEERI NG COMMITTEE................................................................ 2
4. PUBLIC CONSULTATION ......................................................................................... 3
5. M U N ICI PAL STAFF RESPONSI BI L1TI ES...................................................................... 3
6. CONSULTANT RESPONSIBILITIES ............................................................................3
7. CONSULTANT PROPOSAL .......................................................................................4
8. COST OVER-R UN AN D P A YME NT ........................................................................... 4
9. CONTRACT FOR SERVICES ......................................................................................5
10. DE LIVERAB LES........................ .................................................................................. 5
11. SELECTION OF CONSULTANT ................................................................................. 5
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1. INTRODUCTION
As required by the New Development Charges Act (Bill 98), the Municipality of
Clarington is seeking consultant's services to conduct the Background Study leading
to the passing of a new Development Charges By-law by Council.
2. SCOPE OF STU DY AN D PROCESS
The Background Study shall include all those requirements set out in the New
Development Charges Act inclusive of all applicable regulations. The Study process
shall contain all necessary data and information, including a draft Study Report and
a final Study Report.
The scope of the Study shall also include electrical services provided by the
Clarington Public Utility Commission.
3. MEETINGS WITH STEERING COMMITTEE
a) The Municipality will establish a Steering Committee to regularly monitor the
progress of the Consultant's work. The Consultant is required to meet with
the Steering Committee no less than once every two months to report on the
progress of the Study.
b) In addition, the Consultant shall meet with municipal and public utility staff
as often as deemed necessary by the Steering Committee or the Consultant to
ensure information, data etc. are exchanged expeditiously between the
Consultant and staff and that there will be no delay in the Study process.
c) The Consultant shall prepare an agenda for each meeting with the Steering
Committee which will be chaired by the Chief Administrative Officer.
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4. PUBLIC CONSULTATION
The Consultant, in conjunction with the Steering Committee, shall undertake the
following:
a) Public Information Open House
Subsequent to completion of the 151 draft of the Study to the satisfaction of
the Steering Committee, the Consultant shall hold an Information Open
House in Clarington to solicit comments. The Information Open House shall
commence with a presentation by the Consultant with a question and answer
period after. The Consultant shall review all comments and make
recommendations to the Steering Committee on appropriate actions.
b) Public Meetings
The Consultant shall make two presentations to Council; one at the
completion stage of the Draft Study and a second one at the statutory publ ic
meeti ng.
5. MUNICIPAL STAFF RESPONSIBILITIES
a) Provide timely direction to the Consultant.
b) Provide timely information and data to the Consultant.
6. CONSULTANT RESPONSIBILITIES
a) The Consultant is responsible for gathering all background data and
information and carrying out all the necessary analysis to deliver a
Background Study in total compliance with the requirements of the New
Development Charges Act and all regulations made thereunder.
b) The Consultant shall conclude the Study Process by producing the necessary
reports.
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7. CONSULTANT PROPOSAL
The Consultant shall prepare a proposal to include the following:
a) A proposed Work Program including a step-by-step process.
b) A firm timetable indicating the date of commencement of works, dates for
key milestones of the study process, and dates for submission of the draft
report and the final report.
c) A list of data/information items to be provided by municipal staff.
d) An all inclusive total fee to include cost apportionment to the Municipality
and the Clarington Public Utility Commission.
e) Names and titles of person(s) assigned to carry out the study process,
including resumes and references.
f) The Consultant is encouraged to make constructive comments and
suggestions regarding the Terms of Reference and the approach to the Study.
8. COST OVER-RUN AND PAYMENT
a) The Municipality of Clarington is not responsible for any cost over-run
incurred by the Consultant in the preparation of the Study.
b) Invoices must be submitted to the Treasurer and can only cover the works
that have been performed, and are limited to monthly billing.
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9. CONTRACT FOR SERVICES
The Municipality shall prepare a written contract upon selection of a consultant to
undertake the Study.
10. DELlVERABLES
The Consultant shall prepare the following documents through the Study process:
a) Draft Report 20 copies
b) Final Report 20 copies
c) Recommendation Reports on Public Submissions 10 copies
All texts, maps, data, reports and other materials or information collected or
prepared by the Consultant shall be considered municipal property, and shall be
turned over to the municipality upon completion of the Study and in a format
compatible with municipal computer systems.
11. SELECTION OF CONSULTANT
a) An interview with the Steering Committee will be held. Recommendations
to Council to select the Consultant will follow. The recommended
Consultant may be required to appear before Council.
b) The recommendation to select a Consultant will be based on a number of
criteria including, but not limited to, the Consultant's experience, expertise,
commitment to deliver the Study on time, and cost.
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