5.                   Cash-in-lieu of Parkland Funds Policy

 

politique relative au fonds du règlement financier des terrains à vocation de parc

 

 

Committee recommendation

 

That Council adopt the 'Cash-in-lieu of Parkland Funds Policy' as detailed in Document 1.

 

 

Recommandation du comité

 

Que le Conseil adopte la « Politique relative au fonds du règlement financier des terrains à vocation de parc », comme il est expliqué en détail dans le Document 1.

 

 

Documentation

 

1.                   Deputy City Manager's report, Infrastructure Services and Community Sustainability, dated 10 December 2010 (ACS2011-ICS-PGM-0008).

 

2.                   Planning Committee Extract of Draft Minutes of 25 January 2011.

 


Report to/Rapport au:

 

Planning Committee

Comité de l’urbanisme

and Council / et au Conseil

 

10 December 2010 / le 10 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 : Richard Kilstrom, Manager/Gestionnaire, Policy Development and Urban Design/Élaboration de la politique et conception urbaine, Planning and Growth Management/Urbanisme et Gestion de la croissance Élaboration de la politique et conception urbaine

(613) 580-2424 x22653, Richard.Kilstrom@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2011-ICS-PGM-0008

 

 

SUBJECT:

Cash-in-lieu of Parkland Funds Policy

 

 

OBJET:

politique relative au fonds du règlement financier des terrains à vocation de parc

 

 

REPORT RECOMMENDATION

 

That Planning Committee recommend that Council adopt the 'Cash-in-lieu of Parkland Funds Policy' as detailed in Document 1.

 

RECOMMANDATION DU RAPPORT

 

Que le Comité de l’urbanisme recommande au Conseil d’adopter la « Politique relative au fonds du règlement financier des terrains à vocation de parc », comme il est expliqué en détail dans le Document 1.

 

 

BACKGROUND

 

At the special meeting to deal with budget deliberations held on January 25-28, 2010, Council considered the recommendation, which was contained in the Mid-term Governance Report, that suggested Ward Councillors and staff be given expanded delegation over some transactional items. More specifically, they considered delegation to Councillors and senior staff for Ward specific matters, including the use of cash-in-lieu of parkland funds that are directed for use in Councillor's Wards. When  Council adopted the Parkland Dedication By-law in 2009, they provided that 60 per cent of the cash-in-lieu funds, which is contributed as a condition of new development, would be used for park and recreational purposes in the Ward in which the development occurred. The balance, 40 per cent of the funds contributed, would be used for city-wide park and recreational purposes.

 

The Department of Planning and Growth Management and the Department of Parks, Recreation and Cultural Services are involved in the development and improvement of parks and use cash-in-lieu funds.  At present there is no clear mechanism in place to authorise expenditures of the funds accumulated in the cash-in-lieu accounts by Ward Councillors or staff of these departments.  As a consequence, and until staff developed a permanent policy, Council initiated a temporary policy as follows:

 

  1. Parks, Recreation and Culture and Planning and Growth Management staff prepare a report for the appropriate Standing Committees and Council that recommends policies and processes for the approvals related to expenditures related to cash-in-lieu of parkland in Ward accounts;

 

  1. Until Council adopts a formal policy, the general process for delegation be followed such that:

 

a.      The General Manager, Parks, Recreation, and Culture, with the concurrence of the Ward Councillor, be authorized to establish a budget and approve expenditures for existing park-related purposes, with the further concurrence of the Director, Real Estate Partnership and Development Office, purchase parkland, and

 

b.      The General Manager, Planning and Growth Management, with the concurrence of the Director, Real Estate Partnership and Development Office and the Ward Councillor, be authorized to establish a budget and approve expenditures for the acquisition of parkland through the development review process;

 

from uncommitted and unappealed amounts on deposit in that Ward’s cash-in-lieu of parkland account;

 

  1. Any expenditures be reported annually by Planning and Growth Management Department to Community and Protective Services Committee, including any resulting impacts on the operating budget; and

 

  1. That no expenditures be approved after 30 August 2010.

 

DISCUSSION

 

A permanent policy that is modelled on Council's temporary policy was prepared and distributed for internal consultation. The final draft of that policy is contained in Document 1.

 

The proposed policy contains the following components:

 

 

When cash-in-lieu can or cannot be used

 

The policy limits the use of cash-in-lieu funds to 'eligible projects' that are defined within the policy.  The basis for the definition is the Planning Act and best practice in other municipalities. It also takes into consideration that parkland dedication is the only development related mechanism that funds acquisition of land for parks. It is proposed that cash-in-lieu will primarily be use for land acquisition and park development. The list of eligible projects is established in Document 1 and is limited to:

 

 

The policy also limits access to cash-in-lieu funds if the amount contributed by a development is subject to appeal by the developer. The Planning Act provides that a developer who objects to the amount of cash-in-lieu required by the City may pay the amount of funds requested and lodge an appeal with the Ontario Municipal Board.  The funds are deposited into the cash-in-lieu accounts in the manner established by Council's policy. Since the Board, in making a determination of the appeal, may reduce the amount required to be paid to the City, it would be unwise to allow those contested funds to be committed to projects until the appeal is finalised.

 

Delegation to use cash-in-lieu

 

The temporary policy of Council only addressed the use of ward cash-in-lieu funds. The proposed policy also addresses the use of city-wide funds.  Delegation for expenditures from cash-in-lieu funds has also been divided between the two Departments of Planning and Growth Management and Parks, Recreation and Cultural Services.  Delegation is given to the General Managers of the two departments subject to the concurrence of the Ward Councillor when Ward funds are to be used and subject to the concurrence of the Director, Real Estate Partnership and Development Office when land is to be purchased.

 

Delegation is given to both General Managers to the use of Cash-in-lieu allocated for city-wide purposes and the concurrence of the Director, Real Estate Partnership and Development Office is required when land is to be purchased.

 

Monitoring and Reporting

 

Both Departments will be accessing the cash-in-lieu funds for projects particular to their mandates.  The General Manager of Planning and Growth Management is responsible for maintaining the record of cash-in-lieu payments, ensuring that the appealed and committed funds are recorded, and confirming what funds are available before they are used for projects.  To this end the General Manager will provide the Parks, Recreation and Cultural Services Department with regular reports on availability of cash-in-lieu funds.  Both Departments will provide detailed monthly reports to members of Council on the status of Ward cash-in-lieu accounts.  Planning and Growth Management will report annually on the account balance to assist in the annual budget preparations. 

 

RURAL IMPLICATIONS

 

The policy applies to the whole City and there are no issues resulting from this policy that are unique to the rural area.

 

CONSULTATION

 

The Departments of Planning and Growth Management and Parks, Recreation and Cultural Services have collaborated in the development of this policy.

 

COMMENTS BY THE WARD COUNCILLOR(S)

 

N/A

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

There are no legal/risk management implications associated with this report.

 

CITY STRATEGIC PLAN

 

This policy contributes to achieving the following objectives of the City's Strategic Plan

 

Achieving a Sustainable, Healthy and Active City  

Objective 1: Support recreational facilities and programming to match the population growth;

Objective 3: Expanding the amount of City-owned greenspace in Ottawa;

 

Planning and Growth Management

Objective 1: Manage growth and create sustainable communities by:

   Becoming leading edge in community and urban design

   Ensuring that new growth is integrated seamlessly with established communities

   Ensuring that community facilities are built in tandem with new development

   Evaluating the impact of policy and development decisions on communities

 

TECHNICAL IMPLICATIONS

 

N/A

 

FINANCIAL IMPLICATIONS

 

There are no direct financial implications associated with this report.

 

SUPPORTING DOCUMENTATION

 

Document 1- Cash-in-lieu of Parkland Funds Policy

 

DISPOSITION

 

Planning and Growth Management to provide monthly Cash-in-Lieu of Parkland ward balances to Members of Council and report annually to Council as part of budget deliberations.  

 

The Cash-in-lieu of Parkland Funds Policy will be adopted as Corporate policy and will be available on Ozone.

 

 


CASH-IN-LIEU OF PARKLAND FUNDS POLICY                                        DOCUMENT 1

 

 

Cash-in-lieu of Parkland Funds Policy

 

POLICY STATEMENT

The City shall ensure the consistent and wise use of all funds collected for the provision of park and recreational purposes, pursuant to Sections 42 and 51.1 of the Planning Act, by defining the purposes for which ‘cash-in-lieu’ may be used and by establishing the mechanisms by which the ‘cash-in-lieu’ funds are accessed and accounted for.

 

PURPOSE

The purpose of this policy is:

·         To identify the purposes for which funds, in the City’s ‘cash-in-lieu’ of parkland accounts, may be used.

·         To ensure that funds in ‘cash-in-lieu’ accounts are only used for eligible projects.

·         To ensure that funds accumulated in ‘cash-in-lieu’ accounts associated with an individual ward are used only for eligible projects in that ward unless two or more of the Ward councillors agree to contribute to a common project that benefits one or more of the Wards.

·         To identify the circumstances under which Senior Staff and Ward Councillors have delegated authority from Council to access and use funds in ‘cash-in-lieu’ accounts.

·         To ensure that users and stakeholders have a complete understanding of the responsibilities and full knowledge of the policy content.

 

APPLICATION

This policy applies to the Council of the City of Ottawa, Ward Councillors and City Staff.

 

POLICY REQUIREMENTS

 

1.      Cash-in-lieu shall only be used for ‘eligible projects’ permitted by the Planning Act as further defined by this Policy.

 

2.      Cash-in-lieu funds collected through the development review will be allocated as follows: sixty percent (60%) of the funds paid will be allocated to use in the Ward in which the development is located and forty percent (40%) of the funds paid will be allocated for citywide purposes.

 

3.      Cash-in-lieu funds collected and allocated to both Ward and citywide use shall be free for use for any ‘eligible project’ defined by this policy except for the following:

a.       Funds that are subject to an appeal. These funds shall not be committed to or used for any purpose until the appeal is resolved.

b.      Funds that are collected through the development process in new communities and that are required to contribute to the acquisition of specific parkland already identified in a later phase of the community’s development. These funds shall be reserved for that purpose only and may not be used for any other eligible purpose.

 

4.      Cash-in-lieu funds collected and allocated to both Ward and citywide use shall not be used for any purpose that is an ‘ineligible project’ as defined by this policy.

 

5.      This policy does not apply to funds collected pursuant to the Development Charges Act.

 

RESPONSIBILITIES

 

Delegation for use of cash-in-lieu funds

6.      Subject to policies 1-5 above the Council of the City of Ottawa hereby delegates authority to Staff and Councillors to establish budgets, access cash-in-lieu funds and approve expenditures of cash-in-lieu funds for ‘eligible projects’ subject to the following: 

    1. Delegates authority to the General Manager, Parks, Recreation and Cultural Services to access and use cash-in-lieu funds for  any eligible project associated with an existing park or for the creation of a new park that is not associated with the development review process. This delegation is subject to the following:

                                                              i.      the use of cash-in-lieu funds from a Ward account requires the concurrence of the Ward Councillor;

                                                            ii.      the acquisition of land requires the concurrence of the Director, Real Estate Partnership and Development and the General Manager, Planning and Growth Management is to be advised;

                                                          iii.      the General Manager shall confirm the availability of funds with the General Manager, Planning and Growth Management prior to committing funds to any project.

 

    1. Delegates authority to the General Manager, Planning and Growth Management to access and use cash-in-lieu funds for any eligible project associated with the development review process including the acquisition of parks in new communities.  This delegation is subject to the following:

                                                              i.      the use of cash-in-lieu funds from a Ward account requires the concurrence of the Ward Councillor;

                                                            ii.      the acquisition of land requires the concurrence of the Director, Real Estate Partnership and Development and the General Manager, Parks, Recreation and Cultural Services is to be advised.

 

Monitoring and Reporting

7.      The General Manager, Planning and Growth Management will maintain a record of all cash-in-lieu funds paid and allocated to Ward and to citywide use and a record of all funds subject to appeal or intended for specific land acquisition projects in new communities. The General Manager may appoint a delegate to maintain this record.

 

8.      The General Manager, Planning and Growth Management or delegate will provide the General Manager, Parks, Recreation and Cultural Services with a bi-monthly copy of the record of available cash-in-lieu funds. 

 

9.      The General Manager of Planning and Growth Management and the General Manager Parks, Recreation and Cultural Services will present a joint report to the Planning Committee in the first quarter of each year to assist Council deliberations in the annual budget process. The report will contain a statement that summarizes the status of the various cash-in-lieu reserve funds. The annual statement will document the funds allocated to ‘eligible projects’, interest earned on each account and the fees collected on a Ward or citywide basis.  

 

LEGISLATIVE AUTHORITIES

Ontario Planning Act, R.S.O. 1990, CHAPTER P.13

 

DEFINITIONS

 

cash-in-lieu    means the payment of funds equivalent to the value of the amount of land that the City would otherwise have been entitled to require to be conveyed for park purposes as part of a development. The payment of cash-in-lieu is usually required as a condition of development approval and is assessed as the value of the land the day before the City grants approval for the development, as specified in the Planning Act.

 

citywide          means something having relevance to or providing services for the population of the City as a whole or a part of the City that is larger than a single ward.  

 

eligible project – means:

·        Acquisition of land for public park purposes

·        Capital projects for the development of new public parks which may include any associated site preparation and drainage; the provision of park facilities, such as, play equipment, sports fields and pathways: or the provision of recreation facilities, such as community centres, indoor pools and arenas.

·        Capital projects to increase the capacity of existing public parks and/or recreation facilities to accommodate more intensive public use; the provision of additional park facilities, for example play equipment, splash pads and site furniture; and /or the provisions of additional recreation facilities, for example the expansion or upgrading of program spaces in community centres, indoor pools and arenas.

·        The non-growth component of growth-related capital projects, for Parks Development and Recreation Facilities, identified in the City’s Development Charges Background Study.

 

ineligible project - means:

·        Any non-capital costs (studies, ongoing operations, maintenance. etc).  

·        Any costs associated with lifecycle replacement that is not designed to increase the capacity or usability of existing infrastructure.

·        Any costs associated with the acquisition of non-fixed or portable recreational assets for example sports equipment, exercise equipment etc.

·        Any costs associated with the upgrade or replacement of infrastructure required by changes in legislation or public safety requirements.

·        Any cost or work associated with facilities or property not owned by the City.

·        Any capital project associated with facilities operated through a public private partnership to deliver City recreational services.

·        Any capital project associated with land that is not a public park.


4.                  CASH-IN-LIEU OF PARKLAND FUNDS POLICY

POLITIQUE RELATIVE AU FONDS DU RÈGLEMENT FINANCIER DES TERRAINS À VOCATION DE PARC                                                                                                 

ACS2011-ICS-PGM-0008                                           CITY WIDE/À L'ÉCHELLE DE LA VILLE

 

Committee considered and heard delegations on four reports pertaining to provision of parkland, listed as Items 8 through 11 on the agenda:

·                     Item 8 - Cash-in-lieu of Parkland Funds Policy

·                     Item 9 - Park and Trail Front-Ending Policy

·                     Item 10 - Amendment to the Development Charges By-Law 2009-216 with respect to the Parks Development Service Component

·                     Item 11 - Amendment to the Conditions for Draft Approval of Plan of Subdivision – Parks

Committee discussed these reports together, before approving each separately.

 

Dr. Ranjit Perera spoke to Items eight through 11 (Cash-in-lieu of Parkland Funds Policy; Park and Trail Front-Ending Policy; Amendment to the Development Charges By-Law 2009-216 with respect to the Parks Development Service Component; and Amendment to the Conditions for Draft Approval of Plan of Subdivision – Parks) He noted that he had a development application in Cumberland, and had obtained draft plan approval, but the process had been going on for three years.  He noted that he had appeared before the Ontario Municipal Board with respect to certain conditions related to parkland approval. He objected to the fact that rural and urban areas were being treated equally with respect to the provision of parkland and associated policies.  He also objected to the increase in the cost associated with parkland. Finally, he objected to the requirements that developments must meet in parkland areas, particularly for rural developments.

 

There were no questions specifically directed at the Cash-in-lieu of Parkland Funds Policy.  Committee then approved the report recommendations, as presented.

 

That Planning Committee recommend that Council adopt the 'Cash-in-lieu of Parkland Funds Policy' as detailed in Document 1.

 

                                                                                                CARRIED