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HomeMy WebLinkAboutFND-023-12 Clarftwn REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: October 15, 2012 Resolution#: r By-law#: Report#: FND-023-12 File#: Subject: FINANCIAL IMPACT ANALYSIS OF CLARINGTON OFFICIAL PLAN REVIEW: GROWTH MANAGEMENT COMPONENT RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-023-12 be received; 2. THAT the Purchasing By-Law 2010-112 be WAIVED and that Hemson Consulting Ltd. be retained to undertake the Financial Impact Analysis of Clarington's Official Plan: Growth Management Component to an upset limit of $90,000.00; and 3. THAT the study be financed from the General Government Development Charges reserve fund at 90% of the cost and the remaining balance of 10% be funded from Unclassified Administration Professional fees account. Submitted by: c Reviewed by: Nancy jaylor/13 A, CA, ranklin Wu, Director of __;(l b Chief Administrative Officer Finance/Treasurer NT/LG/hj I CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: FND-023-12 PAGE 2 1.0 BACKGROUND 1.1 On March 19, 2012, Clarington Council approved the Addendum to Planning Department's report PSD-009-12 —Amendment 77 to the Municipality of Clarington Official Plan to Incorporate the Requirements and Permissions afforded to the Municipality as a Result of Bill 51, The Planning Conservation Land Statute Law Amendment Act, 2006, Places to Grow Act, 2005, The Greenbelt Act, 2005, The Ontario Heritage Act and The Provincial Policy Statement, 2005. Number 4 of the report's recommendations stated the following: "4. THAT Municipal staff endeavour to complete the Growth Management phase of the Official Plan Review within 18 months incorporating the infrastructure and financing implications of future growth and any implications from the hearing on the Regional Growth Plan Amendment (ROPA 128) currently before the Ontario Municipal Board;". 1.2 The growth management stage of the municipality's Official Plan requires financial consideration of the infrastructure involved due to future growth until the year 2031 so policies may be established and form part of the OP to support the most efficient fiscal process for the development of residential and employment - lands. 1.3 The 2010 Development Charges Background Study will be the basis for this financial impact analysis as some of the infrastructure work for roads and related has been done to the year 2031. Some of the roads and related infrastructure may have to be re-worked to coordinate with population growth per ROPA 128. 1.4 The financial aspects of other related growth infrastructure such as parks, libraries and recreational facilities for residential lands have to be captured to the year 2031 in accordance with provincial policies and plans and ROPA 128. 2.0 COMMENTS 2.1 Hemson Consulting Ltd. has been involved in the growth aspects of the Municipality's Official Plan Review and prepared the Clarington Community Forecast, Population and Employment Projections, March 2010. 2.2 Hemson Consulting Ltd. is familiar with the Municipality's infrastructure plans, growth forecasts and the financing strategy contained in the Development Charges Study. Craig Binning of Hemson Consulting Ltd. was responsible for the preparation of the last four Development Charges Studies. REPORT NO.: FND-023-12 PAGE 3 2.3 The request for proposal for consulting services for the 2010 Development Charges Background Study and draft Development Charges By-law included the provision that the successful proponent assist during the 5 year life span of the Development Charges Bylaw in any related studies, consulting needs or further policy development. 2.4 Hemson has extensive experience in financial impact modelling and prepared for the municipality the Financial Impact Analysis of New Development Areas in 2008. 2.5 Due to the significant detailed scope of this study, Hemson's extensive knowledge of the DC Background study and population forecasts in Clarington, the DC background study RFP requirement that the awarded consultant assist in any related studies, consulting or policy development along with Council's completion timing of September 2013, staff is requesting that the purchasing by- law be waived and that Hemson Consulting Ltd. be retained to undertake this work for consulting to an upset limit of $90,000.00. 2.6 This financial impact study is eligible for 90% funding from the General Government Development Charges reserve fund and the 10% non development charges funding is available in the Unclassified Administration Professional Fees account. 2.7 This study will involve input from several departments. A project work group will include the following departments: Planning, Engineering, Operations, Community Services, Emergency Services with the Finance Department being the lead. 3.0 CONCURRENCE 3.1 This report has been reviewed by the Director of Corporate Services/Human Resources and the Purchasing Manager and they concur with the recommendations. 4.0 CONCLUSION 4.1 This study is necessary in order to fulfill Council's request of March 19, 2012. This financial analysis study will provide Council and staff with advice and recommendations to manage our growth through new policies in the Official Plan and implementation of infrastructure in the most effective fashion for Clarington's current and future taxpayers. 4.2 Although Finance staff will have significant hands on, detailed involvement in the preparation of the study, the scope of work required is beyond the current staffing capabilities to undertake directly in light of other significant projects underway (2013 budget, 2012 year end financial reporting, long-term asset management policy work and involvement in other ongoing special studies). REPORT NO.: FND-023-12 PAGE 4 CONFORMITY WITH STRATEGIC PLAN The recommendations contained in this report conform to the general intent of the following priorities of the Strategic Plan: X Promoting economic development X Maintaining financial stability Connecting Clarington Promoting green initiatives X Investing in infrastructure Showcasing our community Not in conformity with Strategic Plan Staff Contact: Nancy Taylor, B.B.A., C.A., Director of Finance/Treasurer List of interested parties to be advised of Council's decision: none