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4.
MODIFICATION TO
THE AREA-SPECIFIC STORM WATER DEVELOPMENT CHARGE BY-LAW 2009-217 FOR SOUTH
URBAN COMMUNITY – RIVERSIDE SOUTH MODIFICATION AU RÈGLEMENT 2009-217 SUR LES
REDEVANCES D'AMÉNAGEMENT RELATIVES AUX EAUX DE RUISSELLEMENT PROPRES AU
SECTEUR DE LA COLLECTIVITÉ URBAINE DU SUD - RIVERSIDE-SUD |
Committee recommendation
That Council approve a
modification to the development charge rates for the area-specific storm water
development charge By-law 2009-217 for the South Urban Community – Riverside
South as shown in Table 1.
Recommandation du comité
Que le Conseil approuve une modification aux taux des redevances
d'aménagement prévues par le Règlement 2009-217 sur les redevances
d'aménagement relatives aux eaux de ruissellement propres au secteur de la
Collectivité urbaine du Sud - Riverside-Sud.
Report to/Rapport au :
Comité de l'urbanisme
and Council / et au Conseil
30 December 2010 / le 30 décembre
2010
Submitted by/Soumis par : Nancy Schepers, Deputy City
Manager, Directrice municipale adjointe, Infrastructure
Services and Community Sustainability, Services d'infrastructure et Viabilité des
collectivités
Contact
Person/Personne ressource : John L. Moser, General Manager/Directeur général,
Planning and Growth Management/Urbanisme et Gestion de la croissance
(613) 580-2424 x 28869, John.Moser@ottawa.ca
REPORT RECOMMENDATION
That Planning Committee recommend that Council approve
a modification to the development charge rates for the area-specific storm
water development charge By-law 2009-217 for the South Urban Community –
Riverside South as shown in Table 1.
RECOMMANDATION DU
RAPPORT
Que le Comité de
l'urbanisme recommande au Conseil d'approuver une modification aux taux des
redevances d'aménagement prévues par le Règlement 2009-217 sur les redevances
d'aménagement relatives aux eaux de ruissellement propres au secteur de la
Collectivité urbaine du Sud - Riverside-Sud.
BACKGROUND
In 2009, the City completed a comprehensive development charge review in accordance with the Development Charges Act of Ontario, and in June 2009, Council approved the City’s new Development Charge Background Study and enacted new By-laws. The 2009 review included 12 area‑specific storm water management development charge benefiting areas and the passing of 12 individual By‑laws. Storm water management is addressed separately from the City’s overall Development Charge Background Study due to its unique features and local characteristics that benefit defined drainage areas. These area-specific storm drainage areas are based on Council approved master servicing studies, which among other things, recommend storm water infrastructure to support growth within the defined area. For each drainage area, storm water management infrastructure projects and related costs have been summarized in the Development Charge Background Study that provides the information to establish the development charge rates for residential and non-residential land use. Development charge rates for the 12 drainage areas can be found in the Council approved “Development Charge Background Study For Individual Storm Water Management Ponds and Drainage Systems.”
For the area specific storm water management drainage system of the South Urban Community (SUC) – Riverside South community, a municipal infrastructure master servicing study was completed and approved by Council in 2008. This study identified the storm water management strategy and recommended storm water infrastructure to service the growing community to its ultimate potential. Storm water infrastructure consists of six storm water management ponds, associated storm sewers and fish compensation within the Mosquito Creek and its tributaries, as well as some proposed off-site fish compensation and erosion control measures. The cost for this storm water infrastructure in the Riverside South community have been identified in the Development Charge Background Study for the purpose of establishing the residential and non-residential area specific storm water management development charge rates.
DISCUSSION
Subsequent to the enactment of the new storm water Development Charge By-laws, and pursuant to the appeal provisions set forth in the Development Charges Act, an appeal to the SUC area-specific storm water Development Charge By-law was filed by Urbandale, the major landowner for the SUC. Document 1 illustrates the SUC Development Charge contributing area for storm water management. The appeal alleges unreasonably high development charge rates that are based on partial growth potential to 2031, rather than the full growth potential beyond 2031. Growth to 2031 is consistent with the period of growth covered in the City’s 2009 Development Charge By-law. Currently the storm water development charge rates in the Riverside South area are the highest rates in the city, $11,356 for a single family home, as compared to the next highest rate of $6,417 in Cardinal Creek. For a further comparison, the former Development Charge By-law for storm water management in the Riverside South area had a development charge rate of $3,043 for a single family home.
Storm water development
charge rates are
generally established by distributing the total storm related infrastructure
costs over the growth potential.
Significant factors contributing to the increased costs in 2009 include
the cost for land acquisition of $500,000 per hectare compared to $250,000 in
2004. Also, new to 2009 is a project
management allowance equal to 10 per cent of construction costs.
Additionally, updated servicing studies as
well as stricter federal enforcement of the preservation of fish habitat changed
the storm water strategy from 2004. At
the time of the previous Development Charge By-law, the Master Servicing
Study, Geotechnical Investigation, Master Drainage Plan, Fish and Fish Habitat
Assessment, and Fish Compensation Plans for the Riverside South Community
Design Plan were not well advanced to accurately determine the final cost
implications for the storm water measures necessary in this area. As
these studies were prepared and completed by 2009, substantial constraints due
to fish habitat, stream corridor sensitivity and poor soil bearing properties
necessitated significant changes to the preferred storm water strategy for the
area. The Department of Fisheries and Oceans were adamant that fish
habitat was to be salvaged on site where possible and any lost habitat was to
be heavily compensated for, which was a significant departure from previous dealings
in other areas of the city. The result is a much more complex and costly
storm water solution which preserves and improves fish habitat in multiple
existing tributaries by means of extra ponds, storm treatment manholes, and
outlets which were not envisaged at the time of the previous development charge background study.
Growth Potential
Growth potential is another factor used to establish storm water development charges. This is the total number of residential units as well as non-residential gross floor area projected to be developed within a defined time period of growth, set to 2031. Essentially, a higher growth potential would result in lower development charge rates as costs are spread out over a larger number of residential and non-residential growth. By contrast, a lower growth potential would result in higher development charge rates.
For the Riverside South Development Charge area, projected growth to 2031 is 8557 residential units, and roughly 1.7 million square feet of non-residential space. To achieve total build-out beyond 2031, 7700 residential units and 6.1 million square feet of non-residential growth is expected to occur beyond 2031. In other words, over half of the development potential has been identified beyond 2031, largely from non-residential development. The current development charge rates have been based on total storm water infrastructure spread out over growth only to 2031, thus resulting in higher rates.
Deduction for
Post Period Capacity
Several meetings were held with Urbandale for the Riverside South development charges area, and Urbandale anticipates that phased development throughout the area would proceed in a manner where all storm water infrastructure could potentially be required within the 2031 time horizon. Since municipal servicing is required in advance of any development, partial or otherwise, some of this infrastructure may be underutilized until the full growth potential has been reached beyond 2031. For these circumstances, a deduction can be considered to reduce the storm water development charge rates for servicing requirements that would benefit development occurring beyond 2031. Post-period capacity is the theoretical deduction used to account for these circumstances.
Modification to the Development Charge Background Study
A deduction for post-period capacity requires a modification to the SUC – Riverside South storm water development charge rates. This deduction is based on the principle of single detached unit equivalents (SDUEs) and weighting each type of dwelling (single, semi-detached, town-home, apartment, and non-residential) based on the demand for storm water service required. Essentially, each dwelling type is compared to a single dwelling unit for storm water demand in that the larger the land area required on a per unit basis, the more storm water demand required, and the higher the weighting. Of all residential dwelling types, a single detached home requires the most storm water demand and is given the highest weighting of 1. On the other hand, townhomes and apartments on a per unit basis generally require less land and less storm water demand, and therefore, have a weighting less than one. For the City’s storm water Development Charge By-laws, the same SDUE principle noted above was applied as a means of fairly apportioning the costs between residential dwelling types in determining the storm water development charge rates.
When applying the SDUE principle noted above, 44 per cent of the storm water service demands relate to anticipated development to 2031, while the remaining 56 per cent is attributed to growth occurring beyond 2031, or the designated post period capacity. This 56 per cent represents the theoretical cost of storm water infrastructure to be deferred beyond 2031, and when applied to the total infrastructure costs for the Riverside South area, results in proposed development charges rates as highlighted in Table 1. These rates are in line with typical storm water rates.
Table 1
|
Unit |
Enacted Development Charge Rates |
Proposed Development Charge rates |
|
Single/Semi Detached |
$11,356 |
$4,313 |
|
Row/Townhouse |
$8,147 |
$3,079 |
|
Apartment |
$3,241 |
$1,862 |
|
Non-residential rate per GFA |
$15.05 |
$6.23 |
CONSULTATION
Staff have consulted with Urbandale on many occasions and Urbandale have indicated that they will support the approach outlined in this report.
COMMENTS BY THE WARD COUNCILLOR(S)
LEGAL/RISK MANAGEMENT IMPLICATIONS:
This report is being prepared in response to an appeal received pursuant to the appeal provisions set forth by the Development Charges Act. The appellants have indicated that they will support the approach outlined in this report.
CITY STRATEGIC PLAN
The recommendation contained herein aims to support the following strategic directions adopted by Council:
Planning
and Growth Management
Objective 3: Ensure that the City infrastructure required for new growth is built or improved as needed to serve growth.
Sustainable Finances
Objective 3: Make growth pay for itself.
FINANCIAL IMPLICATIONS
Area-specific storm water Development Charge By-laws are used to fund all storm water infrastructure in a development charge benefiting area exclusively. Projects are typically undertaken through front-ending agreements between the City and developers whereby the developer carries the cost of construction. Upon City approval of the works, the developer is then reimbursed quarterly based on revenues, as the City collects them. At no time does the reimbursement exceed the revenues received. Front-ending agreements require Council approval to pre-commit the project budget in the year in which it is identified in the 10-year capital program.
SUPPORTING DOCUMENTATION
Document 1 Plan of South Urban Community – Riverside South Storm Water Development
Charge Area.
DISPOSITION
Legal Services will seek the approval of the Ontario Municipal Board for the revised storm water development charges rates.
