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TO: |
Mayor and Members of Council |
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FROM: |
Andy Taylor, Commissioner of
Corporate Services Jim Baird, Commissioner of
Development Services |
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PREPARED BY: |
Joel Lustig, Director Financial
and Client Services Allan Arbuckle, Manager of
Infrastructure & Capital Works Tim Lambe, Manager, Policy and
Research Division |
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DATE OF MEETING: |
2003 - Sept - 16 |
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SUBJECT: |
2004 Development Charges
Background Study |
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RECOMMENDATION:
That the report titled “2004 Development Charges Background Study” dated
September 16, 2003 be received;
And that Hemson Consulting Ltd. be
retained as the lead consultant to assist in the completion of the 2004
Development Charges Background Study at a cost not to exceed $133,750 inclusive
of 7% GST ($128,750 inclusive of 3% GST);
And that the Hemson Consulting Ltd
work be funded from the Town of Markham Development Charges Town Wide Soft
Administrative Capital Growth Studies account in the amount of $120,375 and
that the balance in the amount of
$13,375 be funded from capital account 044-6100-003-005 Corporate Wide
Projects;
And that Development Services
provide the CAO with a business case outlining the proposed Engineering,
Planning and Urban Design Departments work plans, projected consulting costs,
projected costs for contract positions, proposed staff secondments, and
projected timelines for budget funding;
And that the CAO be delegated the authority to allocate budget funds
from the Development Charge Reserve Funds and other non-DC sources as required;
And that staff report back to Council on the funding allocation approved
by the CAO.
PURPOSE:
The purpose of this report is to seek approval
to hire Hemson Consulting Ltd. as the lead consultant to assist with the
completion of the 2004 Development Charges Background Study and to delegate to
the CAO the authority to allocate budget funding for the Engineering, Planning and Urban Design Departments
activities required to complete the required background technical studies and
prepare the necessary supporting materials.
BACKGROUND:
The
Development Charges Act, 1997 (DCA), and its associated regulation (O.Reg.
82/98) provide the basis for municipalities to recover growth-related capital
costs from new development. The
authority of the Act is used by the majority of municipalities in the Province
to pass by-laws governing the application of development charges to new
development. The Town of Markham has a
long history of imposing lot levies and, since 1991, development charges to recover
growth-related capital costs from new development so that the financial impact
to existing taxpayers of growth-related costs is minimized.
The Town
enacted its current development charges by-laws on August 31, 1999, (Town Wide
Hard, Town Wide Soft and 16 Area Specific By-Laws). The by-laws have a five-year term (the maximum term allowed under
DCA), and new by-laws will need to be enacted, therefore, by August 31, 2004.
The Development Charges Background Study will involve:
·
A review
of the Town’s existing policies and practices;
·
Applying
methodology for calculating development charges which is consistent with the
Development Charges Act;
·
Collection
and analysis of various data necessary to calculate and justify new development
charges;
·
Preparing
a well-documented background study;
·
Conducting
public consultation meetings and the statutory public meeting prior to by-law
enactment;
·
Review
and amendment as necessary to appropriate implementation and administrative
policies.
The
primary objective is to provide a well- documented development charges
background study and defensible development charges by-laws that are
consistent with the requirements of the Development Charges Act.
Staff
feel it is prudent to commence the development charge work early in anticipation
of the expiry of the Town’s development charge by-law on August 31, 2004. The majority of municipalities across
Ontario will be engaging consultants within the next six months, and given the
status and complexity of the Markham Centre development, its impact on the Town
wide infrastructure requirements and the rapid pace of growth in Markham, staff
feel that it is advisable to retain consultants now, assign Town staff to the
project and begin the work required to support the overall Development Charges
review.
OPTIONS/DISCUSSION:
The 1999 Development Charges
Background Study was completed with the assistance of Hemson Consulting
Ltd. The study update will be completed
using a similar structure and process to that which was used in 1999.
The appointment of Hemson
Consulting Ltd. to once again assist in the completion of the study will enable
the Town to produce a high quality, defensible development charges policy in a
cost effective manner due to Hemson Consulting Ltd’s knowledge and experience
with Markham’s development charges and the availability of existing computer
modules and data bases and the firm’s good reputation with the development
industry in Markham.
For the above reasons, it is
recommended that Hemson Consulting Ltd. be retained as the lead consultant to
assist in the completion of the 2004 Development Charges Background Study.
The
Engineering, Planning and Urban Design Departments will each be required to
provide a significant amount of input into the Study. In particular, Planning Department staff
will be required to prepare estimates of dwelling units, population,
employment, developed and developable land for a number of historical and
horizon years for the Town as a whole, for the urban and rural areas and for
each area specific development charge area. These estimates must be linked to
concurrent updates of related Town databases.
The Engineering Department must review all projects
that are currently included in the Town Wide and Area Specific Development Charges and in the 10 year capital forecast to
confirm the need and justification for each project, prepare or update
construction cost estimates, identify property requirements and costs and to
determine the proportional share of each project cost which is applicable to the
Town Wide and Area Specific Development Charges. Engineering staff must also
update the Town’s water distribution and sanitary sewer system distribution
models, the MTPS transportation model and several environmental studies to
ensure that the infrastructure required to support the projected levels of
development are identified and included in the Development Charges.
The Urban
Design Department must provide an update of the park land inventory,
park facilities and park construction facility costs since 1999, identify the
10 year Average Service Level for park land, park facilities, outdoor buildings
and land for and special facilities, develop a long term plan for park
construction and develop a capital budget program and detailed facility budget
for the new 10year projection.
FINANCIAL CONSIDERATIONS:
It
is recommended that Hemson Consulting Ltd. be retained as the lead consultant
to assist in the completion of the 2004 Development Charges Background Study at
a cost not to exceed $133,750 inclusive of 7% GST ($128,750 inclusive of 3%
GST).
The Hemson Consulting work will be funded from the
Development Charges Administration Capital Administrative Capital Growth
Studies account ($120,375) and from capital
account 044-6100-003-005 - Corporate Wide Projects ($13,375).
It is also recommended that the Engineering, Planning and Urban Design
Departments provide a business case to the CAO outlining the engineering,
planning and urban design work plans, timing of cash flows over the 2003 and
2004 budget periods, and costs of proposed contract staff and technical studies
required to complete the background technical studies within the required
timeframes. The preliminary
investigation for Planning and Engineering studies as well other related costs
is approximately $500,000 to $600,000.
It is proposed that the CAO will be delegated the authority to allocate
funding for the Engineering, Planning and Urban Design Departments requirements
in connection with the Development Charges Study update from the Town of Markham
Development Charges Town- Wide Soft Administrative Capital Growth Studies
account and nominal amounts from non-DC sources that relate to 10% non-growth
funding anticipated for urban design and planning studies.
ENGAGE 21ST CONSIDERATIONS:
The
Town continues to explore opportunities to minimize costs without compromising
on efficiency. The proposal to once
again appoint Hemson Consulting Ltd. to assist in the completion of the 2004
Development Charges Background Study provides credence to the Town’s commitment
to fiscal stewardship. Due to Hemson Consulting
Ltd’s good reputation with the development industry in Markham, knowledge and
experience with Markham’s development charges and the availability of existing
computer modules and data bases, a high quality, defensible
development charges policy will be produced, in a cost effective manner, by the
Town.
BUSINESS UNITS CONSULTED AND AFFECTED:
No
other business units were consulted.
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Joel Lustig, Director, Financial and Client Services |
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Andy Taylor, Commissioner, Corporate Services |
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Barb Cribbett, Treasurer |
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Jim Baird, M.C.I.P., R.P.P. Commissioner, Development Services |
Q:\2003COW_Council\0310 2004 Development
Charges Reportbc.doc