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HomeMy WebLinkAboutBy-law 3560/90 THE CORPORATION OF THE TOWN OF PICKERINCa BY-LAW NO, 3560 /90 Being a by-law to authorize the retention of C.N. Watson and Associates Ltd. to conduct a Development Charge Policy Study and the execution of documentation to effect that retainer. WHEREAS, l~ursuant to the Development Charges Act 1989, S.O. 1989, chapter 58, The Corporation otthe Town of Pickering ~s proposing to enact a Development Charges By-law and requires the assistance of a financial consultant to prepare and process a Development Charge Policy Study and related matters in furtherance thereof; and WHEREAS, pursuant to the Municipal Act, R.S.O 1980, Chapter 302, section 208.45, the Council of The Corporation of the Town of Pickering may pass by-laws for appointing such servants as may be necessary for the purposes of the Corporation and for carrying into effect the provisions of any Act of the Legislature; NOW THEREFORE, the Council of The Corporation of the Town of Picketing HEREBY ENACTS AS FOLLOWS: 1. The firm of C.N. Watson and Associates Ltd. is hereby retained as the Town's financial consultant for the purpose of carrying out a Development Charge Policy Study in accordance with its proposal dated 1990 06 27, a copy of which is attached to this By-law as Schedule A, at a maximum cost to the Town of $25,000. 2. The Mayor and Clerk are hereby authorized to execute any documentation, including but not necessarily limited to the proposal in the form attached hereto as Schedule A, necessary to effect the retainer referred to in section 1, above. 3. Schedule A hereto forms part of this By-law. BY-LAW read a first, second and third time and finally passed this 1st day of October, 1990. Bruce Taylor, Clerk TOWN CF PICKERING APPROVED LEGAL DEPI. SCHEDULE A C.N. Watson and Associates Ltd. Economisl~ 629 The Queemway Telephone (416) 253-8080 Toronto, Ontario Fax (416) 253-9362 MSY VIA COURIER June 27, 1990 Mr. J. Walls Treasurer-Collector The Town of Pickering Picketing Civic Centre One The Esplanade LIV 6K7 Dear Mr. W~II~; Re: Develo~)ment Charge Policy_ Study Further to your letter of June 25, 1990, we are pleased to provide a proposal to conduct a Development Charges Study for the Town of Picketing. As you are aware, the ..Development Char~es Act. 1989 which received Royal Assent on November 23, 1989, stipulates in s.44 that a by-law or resolution providing for the payment of chargea related to development that was in effect on November 25, 1989 shall remain in effect, without amendment, for a maximum of two years, or until the municipality passes a new by-law under the Act. Section 45 of the Act prevents the munidpali _ty from enterin~ into a s.50/$2 Planntn~ Act am-eement (re: subdivision or severance) that imposes a charl~e related to a development, thereafter, other than local ~-vices installed at the expense of the owner within the subdivision or as a condition of approval of a severance, or local connections to water mains, sanitary ~ewers and storm drainage facilities installed at the expense of the owner. s.4 of the Act sets out approval requirements for a by-law under the Act, including the requirement to hold a public meeting and to give a minimum of twenty days notice thereof. The requirement to have a sound basis for the development charge policy which complies with the ACt and Regulations, therefore gives rise to the need to provide for:. · establishing a ten year residential and non-residential growth plan; C.N. Watson and Associates Ltd. · identifying all net residential and non-residential growth-related capital costs (which could involve further engineering work); · calculating a development charge for various uses and categories of development, using a full cash flow methodology; · preparing the nec~ry report, by-law and information pamphlet; · reviewing the draft report and by-law with Council before holding a public meeting thereon; · holding a public meeting and considering the verbal and written input arising therefrom and modifying the report accordingly, before returning it to Council for final consideration. Finally, the Act makes it vitally important that municipal policy be ~oundl_v based, in that it bestows considerably strengthened appeal powers on those affected, i.e. the by-law: · may be appealed by 'any person or orga~iTation' within twenty days of receiving written notice; · the appeal relates to the by-law itself and all char_~es collected thereunder, rather than simply to the charges imposed on any particular development, as at present; · the appeal doea involve "holding up' the processing of any partio_~l~r development propoeal, as at present; · where the Municipal Board ordem a reduction in the development charge, the mmxictvali~ t~hall r~md all develomnent char_~es ?aid thereunder, ~lu~ interest, With ~ sittmtion as background, we are submitting herewith the following proposal: 1. Obtectlve 1.1 to review the Town's existing policy regarding recovery of capital expenditures from new development and to recommend appropriate development charges under a new policy. 1.2 to do so in a manner which complies with the requirements of the Develovment Char~es Act, 1989 and its associated Regulations. This includes C.N. Watson and Associates Ltd. '3- the requirement to hold at least one public meeting and to consider and respond to any communicatiom on the study associated therewith. 1.3 to addre~ transitional arrangements from the Plannimr Aa-based charges to the l~¥elo~ment Char~es A~, with particular reference to the existing agreements, site specific charges and land dedications. 2. Approach 2.1 provide a definition of what needa to be done in order to comply with the D~v~lgpment Char~es Act and associated Regulationa. Our firm will dearly define methodology and verify it with a number of legal Counsel, as part of conducting studies in other jur~dictiom. The firm will also establish the formats needed to assemble the data and to facilitate the calculations. 2.2 work with staff (or Town planrring consultants) to establish a ~olid growth forecast for the municipality for a period of approximately ten year~. This forecast is to address residential, commercial, industrial and institutional development by time period, type, size and general location in formats similar to those set out in Figure 1. 2.3 work with staff to establish a dear and comprehensive summary of the Town's current policy and practice regarding charges under the Plannin~ Act s.36, 41, 50, 52, front ending agreements, 'best effort' front-ending situations, over$1~ir~ policy, parkland dedications, road widenings, boundary road improvements, Municipal Act and Local Improvement Act charges, etc. This as,_~es_sment will aiso addrea~ reserve fund~ which have been accumulated, outstanding commitments, and the nature of the financial component of subdivider and related agreements the Town has, or is negotiating. This as~_~e~_sment is of critical importance to integrating the current system with the proposed system of dealing with development. 2.4 undertake a review of service leveis and growth-related projects, including existing facilities and po~ible future intentions. ~ task would involve meetings with Town representatives responsible for engineering, parks and recreation, fire, library, administration and other works. This exercise would involve the identification of growth-related project segments eligible for development charge, establishment of co~t allocation approaches, etc. 2.5 Data on growth-related projects would include the type of information contained on Figure 2, including the determination of the highest level of C.N. Watson and Associates Ltd. service attained during the preceding decade, pursuant to s.3(1) of O. Reg. 725/S . The service levels which are to underlie the analysis would be put before Council for formal adoption, pursuant to s.3(2). Of particular importance would be the separation of expenditures required even in the absence of future growth (to repair, replace or upgrade) from these which, in whole or in part, are attributable to the requirements of growth, on land subject to development charges. 2.6 Establish, based on research and arjalysis, the fundamental parameters on which it is proposed that the development charge calculations be based. These include: murdclpal-wide vs. area specific charges for individual service types, particularly for hard services, such as storm drainage; · the anticipated role of developer front-end financing in the project funding scheme; · the potential role of development charge credits where service oversizing is mandated by the Town; · possible full or partial exemptions to be granted to institutional, affordable housing and other forms of development; · the requirement to incorporate a property tax/user charge capital contribution credit In order to avoid double-charging (despite the fact that the Act does not spec~cally reference same); · the definition of residential unit types on which different development charges are to be imposed and the substantiation of the occupancy and other bases used for such differentiation (for example, as per Figure 5). 2.7 factor these cost components into a ~h flow analysis for both residential and non-residential development, similar to the one set out in Figures 3 and 4 which follow. The assumptions and parameters would be adjusted until the forecast "December 31 Development Charge Reserve Fund Balance" in Figure 4 is in a satisfactory state. C.N. Watson and Associates Ltd. 2.8 prepare a report documen~ng these steps and assumptions, together with the necessary administrative considerations. These include timing of collection, collection for others, exemptions, level of non-residential charges, reserve fund management, updating, special agreements, other vehicles to be used in imposing charges, etc. As well, our report will provide staff with an outline of responsibilities and critical dates to which certain functions must be performed, in conformity with the requirements of the Act and Regulations. 2.9 present this report in draft form to Council, and then subsequently at at least one public meeting, in compliance with the Act. A finalized report, together with a response to any submissions made as a result of the public meeting would be subsequently presented to Council for final consideration, prior to the adoption of a Development Charges By-law, under the ACt. 3. Staff Resources 3.1 The project would be directed by Mr. Watson and carried out by one of the firm's Associate Directors - Ms. C.L. Kllgour, M.C.I.P. or Mr. G.D. Scandian, B.A. Input would be provided by these and other staff, depending on the subjec area. 3.2 We would obtain from the Town, or its engineering consultants, detailed information regarding growth-related projects, based generally on the format set out in Figure 3. Where specific information is not available, we will diso~q alternate approaches with staff. Figure 6 illustrates the overall methodology involved. 3.3 It is assumed that the Town's solidtor would review and finalize the draft by- law to be prepared by the consultant and participate in the study and public meeting process as directed by Town. 3.4 A copy of the firm's "Outline of Experience and Qualifications" document which details our experience in development charge studies and the qualifications of the staff team to be involved, has been provided separately. 4. Timing 4.1 This project is expected to require a period of approximately nine months to complete. Please note that the requirement for a public meeting and associated work requires the provision of reasonable time allocations. We would suggest that the timetable be based on adoption of a new by-law in C.N. Watson and Associates Ltd. -6° Spring, 1991. During the next several months we would seek to ensure that the nece~___~_ ry costing and other data can be made available where required, and that relevant reports prepared in the interim are generally consistent with the study requirement. The substantive work would be done later this year, with finalization and review occurring in 1991. This timetable wili enable us to benefit from the experience of other larger municipalities. It will also permit the work to he dovetailed with your 1991-95 capital budgeting and fore **ting exercise. 5.1 The financial requirements of our firm to carry out this study, is in the order of $20,000-$25,000 with payment net thirty days (plus G.S.T., wb~e applicable). ~ includes 10 copiea of the draft report, one copy of the final report (suitable for reproduction), two Committee/Council presentations and the public meeting (required by the Act). Our billings are based on our fee schedule, which ranges from ~ per hour for support staff to $150 per hour (1990 $) for the writer, with disbursements invoiced at cost. In addition, the budget relates to the report preparation and policy adoption only, and does not cover time should an appeal materialize, or liability for the results thereof. Also, any engineering, land appraisal (i.e. ~sh in lieu of parkland policy) or legal costs which may be involved, have not been incorporated heroin. 5.2 Our budgetary requirement is, of course, a function of th~ amount of consulting time required. A lower budget allocation could be produced by either "off-loading" work tasks to Town staff or bv ?roducin~ a les~ thorou_e.h tmalysis and _vroces___~. We believe, based on extensive exverienre, that the ranee above is anprovriate to the task. We also believe that an inveslment of this magnitude is justified in light of the Town's potential development charge revenue and the nature of any appeal associated therewith. A cost variance is involved because of variables such as public meeting input and availability of project coat information, partio,l*rly for "hard" services. 6. ~ A copy of our Experience and Qualifications booklet is provided with this proposal. Of partio~lJr importance is our past work in und~xlaking lot levy studies for approximately fifty municipalities and local boards, and our demonstrated experience in justifying our studies at Ontario Municipal Board hearings over a ten year period. We have also worked with the Ministry of Municipal Affairs, AMCTO, AMO and other groupa, on the new Act. Currently, under the new Act, we are working on C.N. Watson and Associates Ltd. behaff of over fifty additional municipalities and local boards to establish development charge studies and by-laws. The breadth of municipal size and context involved will allow us to assess the requirements of the new Act in relation to widely varying needs. This experience is a necessary part of developing a sound study to justify at an OMB hearing, should the need arise. We hope this outline meets your requirements and would be pleased to discuss it further, if additional clarification is required. Should this proposal be acceptable to Town Council, please so indicate by signing this agreement below and ret~ a copy to us as our authorization to proceed. Your~ very truly, C.N. WATSON AND ASSOCIATES LTD. C.N. Watson, CIVIC on behalt of:. FIGURE 2 DEVELOP~ ~ARGE POLICY - PRO/ECr ~UI~OdARY SHEET I. Pro'pct 2. C~tegory 3. Approwl S~tu~ 4. Des~ption/lnclu~lons 5. Basis for Growth- Related Attribution FIGURE 2 (Cont'd) RECREATION AND LIBRARY GROWTH-RELATED CAPITAL PROIECT SHEETS FACILITY TYPE: 1. Exlstlnz Inventory Name Loc~Uon DescrlpUon Year Ch:tuned 1.1 1.2 1.4 1.5 1.6 z Sen,tc t4,v Munldpal No. of Fadllltes 2.1 Ou~nUw Potmlatl~:m Fadlltl~ P~ Caoita 1980 1981 1982 1983 1984 1985 1986 1988 1989 Oe :dpt of "Blended' Facility Council-approved Servtee Level Standard: 3. CosRng Basis: 4. Unk tO Ten Year Flnandal Plan (and Prevtous Flv~t Year Expendittu~s): 4.1 Forecast Service Level Pe~ Capita 4.2 Cost Factor to Maintain Quality Standard