Loading...
HomeMy WebLinkAbout2011-05-16 Workshop Meeting Agenda and Reports.pdfDistrict of Maple Ridge COUNCIL WORKSHOP AGENDA May 16, 2011 9:00 a.m. Blaney Room, 1St Floor, Municipal Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. REMINDERS May 16,201 Closed Council following Workshop Committee of the Whole Meeting 1:00 P.M. 1. ADOPTION OF THE AGENDA 2. MINUTES -May 9, 2011 3. PRESENTATIONS AT THE REQUEST OF COUNCIL 4. UNFINISHED AND NEW BUSINESS 4.1 Reserves Staff report dated May 16, 2011 providing an overview of the District's financial resources. 4.2 Contract Award: Building Demolition (Various Locations) Staff report dated May 16, 2011 recommending that the contract for the demolition of structures situated on Municipally owned property in the 22600 Block of 119 Avenue and Selkirk Avenue be awarded to T&T Demolition Ltd. and that the Corporate Officer be authorized to execute the contract. Council Workshop May 16, 2011 Page 2 of 3 4.3 Discussion on Amenity Zoning Staff report dated May 9, 2011 recommending that further discussion be deferred or that staff be directed to incorporate zoning for amenities into the Zoning Bylaw review. Forwarded from the May 9, 2011 Council Workshop 4.4 Area Planning Prioritization Report Staff report dated May 16, 2011 providing an overview of the Official Community Plan policies and the Comprehensive Strategy contained within the plan for area planning. 5. CORRESPONDENCE 0-1 The following correspondence has been received and requires a response. Staff is seeking direction from Council on each item. Options that Council may consider include: a) Acknowledge receipt of correspondence and advise that no further action will be taken. b) Direct staff to prepare a report and recommendation regarding the subject matter. c) Forward the correspondence to a regular Council meeting for further discussion. d) Other. Once direction is given the appropriate response will be sent. Recommendation: 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7. MATTERS DEEMED EXPEDIENT 8. ADJOURNMENT Checked by: & l Date: I I Council Workshop May 16, 2011 Page 3 of 3 Rules for Holding a Closed Meeting A part of a council meeting may be closed to the public if the subject matter being considered relates to one or more of the following: (a) personal information about an identifiable individual who holds or is being considered for a position as an officer, employee or agent of the municipality or another position appointed by the municipality; (b) personal information about an identifiable individual who is being considered for a municipal award or honour, or who has offered to provide a gift to the municipality on condition of anonymity; (c) labour relations or employee negotiations; (d) the security of property of the municipality; (e) the acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality; (f) law enforcementif the council considers that disclosure might reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; (g) litigation or potential litigation affectingthe municipality; (h) an administrative tribunal hearing or potential administrative tribunal hearing affecting the municipality, other than a hearing to be conducted by the council or a delegate of council (i) the receiving of advice that is subject to solicitor -client privilege, including communications necessary for that purpose; 0) information that is prohibited or information that if it were presented in a document would be prohibited from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; (k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; (1) discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] (m) a matter that, under another enactment, is such that the public may be excluded from the meeting; (n) the consideration of whether a council meeting should be closed under a provision of this subsection of subsection (2) (o) the consideration of whether the authority under section 91 (other persons attending closed meetings) should be exercised in relation to a council meeting. (p) information relating to local government participation in provincial negotiations with First Nations, where an agreement provides that the information is to be kept confidential. Deep Roots Greater Heights TO: FROM: SUBJECT: District of Maple Ridge His Worship Mayor Ernie Daykin and Members of Council Chief Administrative Officer Reserves EXECUTIVE SUMMARY: DATE: 16-May-2011 FILE NO: ATTN: Council Workshop This report is intended to provide an overview of the District's financial resources. They are grouped into four categories: 1. Accumulated surplus (revenue funds). This is the cumulative balance of excess revenues over expenses and net transfers to reserves. 2. Reserve funds. These allocations are established by bylaw to hold financial assets for specific purposes, typically capital. 3. Reserve accounts. These allocations represent discretionary appropriations of surplus established to meet business needs as directed by Council. 4. Restricted revenues. Monies collected from others and in return, we are obligated to provide specific services. The amounts on Schedule "A" detail the balances in each of these categories. At the end of 2010, the balance in the accumulated surplus (revenue funds), reserve funds and reserve accounts totalled $56.8 million and we had a further $37 million in restricted revenues. RECOMMENDATION: This report is submitted for information only DISCUSSION: The District of Maple Ridge has financial resources that have been summarized on the attached Schedule "A". Some of these resources are subject to legislation in the Community Charter while others are not. As part of our financial planning process detailed projections are done for key reserves to ensure that the available resources can support the planned activities. The resources can be categorized as follows: 1. Accumulated Surplus (Revenue Funds) The District's business is comprised of three major cost centres: General Revenue, the Sewer Utility and the Water Utility. The excess of revenues over expenses and net transfers to reserves for each cost centre flows to the accumulated surplus balance. The accumulated surplus balance in the revenue funds at the end of 2010 is $11.3 million. Of this amount, $6.15 million relates to the sewer and water utilities and, as per Council's rate stabilization policy, these balances have been used to mitigate the impact of regional rate increases to our rate payers. The general revenue fund has an accumulated surplus amount of $5.15 million and 4A Page 1 of 7 can be used to provide funding for extraordinary one-time items in line with Council's financial sustainability policies. 2. Reserve Funds Reserve funds are established by bylaw and hold financial assets for specific purposes, typically for capital investment. Once a reserve fund has been established, the funds in it can only be used for the purposes noted in the establishing bylaw and any use of the funds must be authorized in the Financial Plan Bylaw. The following provides a brief summary of the District's reserve funds: Local Improvement The balance in this fund is comprised primarily of monies returned to us by the Municipal Finance Authority (MFA) when debt was retired for which sinking fund monies had been held. These funds are intended to be used for local capital improvement projects where a community benefit is derived and a municipal contribution is deemed necessary. ii). Equipment Replacement Each year we transfer monies to this reserve in recognition of the fact that the equipment in use today will need to be replaced in the future. iii). Capital Works The capital works reserve provides for future capital investment. Each year 1% of general taxation is credited to the reserve along with fixed transfer amounts of approximately $200,000 as well as 75% of the proceeds from any land sales. Our practice is to retain a minimum balance of 10% of the prior year's taxation in order to have some funds available in the event of an emergency. Based on the current projection for this reserve we will be pressed to maintain this minimum balance, and that is why a more healthy balance in accumulated surplus is helpful. iv). Fire Department Capital Each year 2% of general taxation is transferred to the reserve to build the financial capacity required to respond to increasing the fire protection capacity needed as the community grows. The balance in this reserve was drawn down over the past few years to fund the construction and renovation of Fire Hall #1. v). Sanitary Sewer This fund resulted from surpluses on sanitary sewer projects in previous years and is available for use on current and future sanitary sewer projects. vi). Land This reserve receives 25% of the proceeds from land sales and is used for land acquisitions. In 2009 the fund received an infusion of $1.5 million as part of the year- end process to provide funding for land acquisitions of importance for Council where there is no other identifiable source of funding. In 2010, Council was able to use this reserve to assist with the purchase of strategic lands in the town centre. Page 2of7 3. Reserve Accounts Reserve accounts are discretionary appropriations of surplus, established to meet business needs. They can be established or dissolved as Council directs to ensure that identified business needs are met and risks are managed appropriately. The following provides a brief summary of the District's reserve accounts: i). Committed Projects (capital and operating) This represents items approved by Council in prior years that were not completed, but are still deemed necessary. A number of the capital projects that will receive funding from this reserve are reliant on third party funding and/or awaiting the outcome of property acquisition negotiations. The amounts in these reserves have decreased by $1.46 million from the 2009 balance. ii). Self Insurance In order to control insurance premium costs we have relatively high deductibles and have chosen to self -insure many events. This reserve account provides funding for insurance deductibles and for self -insured claims. iii). Police services This reserve was established a number of years ago to fund one-time police services initiatives. As per policy, 50% of RCMP contract savings are transferred into this reserve each year. Some of the projects funded from this reserve are the result of changing standards mandated by the RCMP, for example the cell retrofit undertaken in 2010. In 2011 this reserve will provide the funding needed to upgrade the cabling in the RCMP building. iv). Core Reserve This reserve was established at the outset of project to construct the new downtown facilities to provide a mechanism to build our capacity to finance the project over time while smoothing the impact to taxpayers. It assists in managing the cash flows related to the commercial component of the project and is also available to assist with capital improvements. In 2010, funds from this reserve we used to assist with the acquisition of strategic lands in the downtown area. v). Recycling Reserve The recycling reserve retains the balance of recycling levies in excess of contract costs as well as the District's share of the Recycling Society's profits. The reserve is used to provide funding for recycling related projects, such as studies or equipment purchases, or to help offset losses incurred by the Society in the event of falling commodity values. vi). Building Inspections This account is designed to allow us to deal with the impact of an unexpected reduction in building permit revenues. The amount of revenue realized from building permits varies from year to year, in relation to development activity. In years when revenues exceed budgeted targets, a portion of the favourable variance is transferred to this reserve so that should a subsequent shortfall in building permit revenues result in an overall budget shortfall we would have some capacity to sustain service levels in the short-term. Page 3 of 7 vii). Gravel Soil removal fees are credited to this account each year. It is intended to assist with minor infrastructure repair that may be required as a result of soil removal activities. viii). Facility Maintenance Not all facility maintenance is required on an annual basis and this reserve was established to smooth the impact of annual fluctuations in required maintenance costs. ix). Snow Removal This reserve in intended to ensure that the District has the financial capacity to respond to costs associated with higher than normal snowfall without the need to curtail other services. Our annual budget for snow removal is approximately $230,000, with actual costs fluctuating in relation to the severity of weather experienced; in recent years it has not been unusual to see costs in excess of budget. The reserve was established in 1999 with a balance of $200,000; in each of 2007 and 2008, in recognition of inflationary pressures and the increased costs associated with changing weather patterns the balance in the reserve was increased and now has a balance of $700,000. x). Cemetery Maintenance Any excess of revenues over expenses in the cemetery cost centre is transferred to this reserve at year-end and is used as a funding source to maintain the cemetery function, both the facility and the related technology. The perpetual care fund is a separate entity and is managed as a trust. A). Infrastructure Sustainability In 2007 the first infrastructure sustainability account was established in recognition of the need to build the capacity to maintain our growing infrastructure, the replacement cost of which exceeds $1.2 billion. The level of annual maintenance and rehabilitation spending required to maintain it is estimated at over $40 million, our actual expenditures are less than a quarter of this amount. Starting in 2008 we began to set dedicate 1% of taxation to address the gap between required and actual spending. As part of our 2010 year-end process we transferred $600,000 to the infrastructure sustainability reserve for roads maintenance and $300,000 for drainage. xii). Critical Building Infrastructure This reserve was established in 2006 in recognition of the need to provide for emergency or irregular items associated with facility maintenance. Facilities, such as the RCMP building, Municipal Hall and the Leisure Centre were constructed at approximately the same time; consequently some of the building infrastructure, such as the boilers, will likely need to be replaced at similar times. Such infrastructure is costly to replace and our existing lifecycle budget does not have the capacity to provide the necessary funding. This reserve is intended to provide the necessary capacity without having to defer other planned facility infrastructure maintenance. xiii). Infrastructure Grants Contribution This reserve was established in 2008 in order to provide the capacity to take advantage of infrastructure grant programs that typically require a municipality to provide matching funds. In 2010, as senior levels of government began winding Page 4 of 7 down the current round of infrastructure grant programs, Council authorized using some of the monies in this reserve to assist in the acquisition of strategic lands in the downtown area. xiv). Gaming Revenues In 2010, Council entered into an agreement with the Province, resulting in the District receiving a portion of the net revenues from provincial casino gaming at the Maple Ridge community gaming centre, these monies must be used to benefit the community. In the last quarter of 2010 the District received $125,600. These monies were transferred to this reserve pending Council's direction on their use. The resources listed above represent the District's financial assets and do not include non- financial assets, such as our Silver Valley land holdings, a strategic non-renewable resource available to Council. 4. Restricted Revenues Restricted revenues are monies collected from others for which we are obligated to provide specific works. Due to the restrictions on their use, these monies are reported as a liability until the specific works are undertaken. The following provides an overview of the District's restricted revenues: Development Cost Charges These funds are collected from the development community and are used to assist in funding the infrastructure requirements resulting from development. The balance in the DCC fund has been drawn from 2007 levels as a result of a slow down in collections in 2008 and 2009, combined with an increase in spending on DCC funded capital in the past few years. ii). Parkland Acquisition (ESA) Monies paid by the development community that are used to acquire environmentally sensitive areas, such as land required for watercourse protection. Land acquisitions along the North Alouette and adjacent to Davison's Pool exhausted this funding source in 2007. Subsequent collections have started to rebuild capacity in this fund. iii). Downtown Parking Facilities These funds are collected in lieu of providing parking spaces and are to be used for the provision of parking in the downtown area. iv). Developer Specified Projects Charges collected from the development community to assist with the provision of certain infrastructure works. CONCLUSIONS: The above information and attached schedule are intended to provide an overview of the District's financial resources. At the end of 2010 our accumulated surplus (revenue funds), reserve fund and reserve accounts total $56.8 million and we have a further $37 million in restricted revenues. Much of this amount is held for capital investment in the community. Not included in these amounts are non -financial resources, such as our land holdings in Silver Valley. Page 5of7 The District has a sound business planning framework which includes a series of financial sustainability policies. The funds, accounts and revenues outlined in this report were established over many years and assist Council in managing the municipality's finances. Prepared by: Catherine Nolan, CGA Manager of Accounting Approved by. Pa`dl Gill, CGA GM: Corporate and Finan Se ices Concurrence: J.L. (Jima Rule Chief Administrative Officer Page 6 of 7 ACCUMULATED SURPLUS (REVENUE FUNDS) General Revenue Sewer Revenue Water Revenue RESERVE FUNDS Local Improvement Equipment Replacement Capital Works Fire Department Capital Acquisition Sanitary Sewer Land RESERVE ACCOUNTS Specific projects - capital Specific projects - operating Self insurance Police services Core development Recycling Community development Building inspections Gravel extraction Neighbourhood improvements Facility maintenance Snow removal Youth and arts centre Cemetery maintenance Infrastructure Sustainability (town centre bldgs) Infrastructure Sustainability (road network) Infrastructure Sustainability (drainage) Critical infrastructure reserve Infrastructure grants contribution Gaming revenues Service severance WATER AND SEWER RESERVE ACCOUNTS Self Insurance - Sewer Specific projects - Sewer Self Insurance - Water Specific projects - water TOTAL RESERVES Schedule "A" 2010 2009 2008 2007 2006 $ 5,156,074 $ 4,985,070 $ 4,448,718 S 3,170,271 $ 2,442,301 2,515,823 3,059,571 2,963,911 3,527,232 3,401,602 Note 15 3,638,446 2,383,195 3,712,928 3,330,097 3,353,989 11,310,143 11,427,836 11,125,557 10,027,601 9,197,891 2,196,846 2,145,754 2,077,103 1,973,590 1,771,407 7,459,146 6,937,477 7,329,490 8,049,670 7,095,537 8,362,412 8,404,633 8,536,373 9,055,490 10,600,326 1,473,146 1,807,185 6,062,996 7,140,170 6,775,809 1,552,189 1,524,971 1, 442, 312 1,390,549 1,372,742 231,528 1,919,946 406,056 268,712 256,768 21,275,267 22,739,965 26,004,330 27,978,181 27,872,589 4,064,496 4,408,631 4,239,744 4,152,968 3,344,791 3,189,906 2,253,608 3,124,747 3,701,663 1,607,441 956,241 914,702 938,349 922,602 787,729 2,521,930 2,618,915 2,259,704 1,958,021 1,979,364 592,016 1,116,807 1,129,505 970,325 620,938 1,583,709 1,634,271 1,475,367 1,618,549 1,428,698 1,252 1,218 1,176 1,134 1,092 1,810,750 1,761,704 1,704,522 968,034 457,461 563,875 419,417 549,384 496,450 482,519 50,523 60,697 58,688 56,571 54,525 317,512 515,408 360,508 89,519 87,187 700,000 700,000 700,000 350,000 200,000 - 3,708 8,535 8,535 8,535 189,608 151,980 109,457 103,224 139,347 - - 295,385 2001000 - 1,106,822 1,225,889 419,417 - 493,634 40,282 - - - 196,759 172,072 368,625 501,023 518,794 271,979 2,200,000 1,200,OD0 - - 125,600 18, 736, 612 19,199, 308 18, 943,113 15, 999,618 11, 718,421 102,373 95,873 36,184 89,%4 83,183 3,109,415 2,160,492 1,738,057 1,308,040 1,372,814 82,528 99,528 93,026 86,528 80,028 2,201,777 1,722,636 1,088,066 887,835 934,994 5,496,093 4,078,529 2,955,335 2,372,086 4471,009 $ 45,507,972 $ 46,017,803 $47,902,778 $46,248,885 $42,062,019 Schedule 2 TOTAL RESERVES AND REVENUE ACCUMULATED SURPLUS $ 56,818,315 $ 57,445,639 $59,028,335 $56,276,486 $51259910 RESTRICTED REVENUES Development cost charges $ 32,211,726 $ 31,644,928 $34,330,309 $36,704,662 $31,047,111 Parkland acquistion 162,355 - - - 1,717,500 Downtown parking facilities 161,244 144,515 139,734 134,695 129,821 Note 11 Developer specified projects 4,641,174 4,367,763 4,129,236 4,026,358 3,_W5,309 $ 37,176,499 $ 36,157,206 $38,599,279 $40,865,715 $36,699,741 Page 7 of 7 District of Maple Ridge Deep Roots Greater Heights TO: His Worship Mayor Ernie Daykin DATE: May 16, 2011 and Members of Council FILE NO: ITT-CL11-18 FROM: Chief Administrative Officer ATTN: Council Workshop SUBJECT: Contract Award: Building Demolition (Various Locations) EXECUTIVE SUMMARY: On December 15, 2010, the District of Maple Ridge purchased 14 adjoining properties in the town centre area. The lots cover about 3 acres in size and are strategically located between Haney Place Mall and Valleyfair Mall. One of the lots is vacant while another has a commercial building on it. The other lots have residential homes on them. While the buildings are in various states of disrepair, they were generating rental income for the previous owner. The District is interested in using the land to `kick start' new development and in order to do this, the structures have to be vacated and demolished. All of the tenants have been dealt with in a firm but respectful and compassionate manner. The last of the tenants moved out earlier this week and the structures have been secured until they can be demolished. Security services are also in place to make sure that the structures remain secure. Demolition permits to remove the structures and remediate the site of all hazardous materials have also been obtained. The Purchasing Department conducted an "Invitation to Tender" and received quotations from 14 qualified bidders. Once the contract has been awarded, it is anticipated that the demolition process will take between 6 to 8 weeks to complete the removal of all of the buildings. Due to the nature and location of these structures, there is a strong desire to have the demolition and removal completed as quickly as possible. RECOMMENDATION: That the contract for the demolition of structures situated on Municipally owned property situated in the 22600 Block of 119th Avenue and Selkirk Avenue be awarded to T&T Demolition Ltd, and that the Corporate Officer be authorized to sign the contract with T&T Demolition Ltd for the lump sum amount of $137,166.40 including HST and further, that a contingency be allowed to a maximum of 10% of the value of the contract. 4.2 DISCUSSION: a) Background Context: A Hazardous Materials Survey was conducted on all of the buildings and it identified significant amounts of hazardous materials that must be dealt with during the demolition process. Appropriate abatement procedures are clearly detailed in the project scope of work and the District has hired an independent environmental consultant to monitor the removal of the hazardous materials. A public Invitation to Tender (Project #ITT-CL11-18) was conducted in May 2011 and the District received 14 compliant bids. An evaluation of the tenders was completed and it was determined that T&T Demolition Ltd was the lowest compliant and qualified bidder. b) Financial Implications: The budget for the project is $4.1 million. The purchase price was $3,650,000 and after fees, disbursements and taxes, our acquisition cost was $3,700,000. To deal with the occupants, obtain hazardous materials assessments and to prepare the sites for demolition, it will cost us $60,000. These costs were not unforeseen and were accounted for at the outset. The lowest qualifying bid is for $137,166.40 including HST. After allowing for a 10% contingency, we would expect the demolition to cost about $151,000. In addition to this and to ensure proper demolition, we will hire an independent environmental consultant to monitor the removal of the hazardous materials. We expect this work to cost an additional $10,000. Based on the foregoing, the District's cost through to demolition can be summarized as follows: Total acquisition costs $3,700,000 Preparation Costs 60,000 Demolition Contract 151,000 Monitoring 10.000 $3,921,000 CONCLUSION: The demolition process will take up to 8 weeks allowing time for consideration to be given to how these lands can be best used to encourage development in our town centre. Prepared by Dan ela Mikes eL. Manager of Procurement Approved by: Dane Spence Fire Chief/Director of Community Fire Safety Services App'ro ed by: Paul Gill, GM: Corporate & Financial Services ce: J.L. (Jim) Rule Chief Administrative Officer 4. Deep Roots Greater Heighis TO: FROM: SUBJECT: District of Maple Ridge His Worship Mayor Ernie Daykin MEETING DATE: and Members of Council FILE NO: Chief Administrative Officer MEETING: Discussion on Amenity Zoning May 9, 2011 Workshop EXECUTIVE SUMMARY: Through various other discussions, Council has indicated an interest in discussing a provision in The Local Government Act known as zoning for amenities. This provision has been utilized by some other municipalities in Metro Vancouver in various ways and is becoming more popular. This report provides information about the basic tenets of zoning for amenities and poses some questions for future discussion. RECOMMENDATION: 1. That the staff report dated May 9, 2011 be received for information and further discussion be deferred to a time when its application is more imminent. Or 2. That staff be directed to incorporate provisions for zoning for amenities as part of the Zoning Bylaw review currently underway. DISCUSSION: The following is information related to the above mentioned topic and will provide a platform from which to begin a discussion on the viability of utilizing this tool in Maple Ridge. Options for consideration are provided in the body of the report. What is amenity zoning'? Amenity zoning, in its simplest terms, is acquiring a community benefit by way of permitting additional density to be built on a specific site. Often times, it is also referred to as density bonusing. The ability to utilize amenity zoning is governed by Section 904 of the Local Government Act as follows: Zoning for amenities and affordable housing 904 (1) A zoning bylaw may (a) establish different density regulations for a zone, one generally applicable for the zone and the other or others to apply if the applicable conditions under paragraph (b) are met, and (b) establish conditions in accordance with subsection (2) that will entitle an owner to a higher density under paragraph (a). (2) The following are conditions that may be included under subsection (1) (b): 4.3 (a) conditions relating to the conservation or provision of amenities, including the number, kind and extent of amenities; (b) conditions relating to the provision of affordable and special needs housing, as such housing is defined in the bylaw, including the number, kind and extent of the housing; (c) a condition that the owner enter into a housing agreement under section 905 before a building permit is issued in relation to property to which the condition applies. (3) A zoning bylaw may designate an area within a zone for affordable or special needs housing, as such housing is defined in the bylaw, if the owners of the property covered by the designation consent to the designation. The intent of the legislation is fairly simple. A local government will indicate through its Zoning Bylaw the various levels at which development may occur. Section 904 empowers local government to also indicate areas where increased density will be allowed if amenities for community benefit are provided. Essentially, each zone could clearly set a base density for development and then an enhanced density where a provision for an amenity contribution is provided. Why consider amenity zoning? As communities grow, so too does the cost of that growth. New residents and new employers place demands on infrastructure and community facilities which must be expanded or upgraded to meet increased need. Every municipality must have a strategy to pay for capital costs that are necessary to create strong and attractive communities. Options for inclusion into that strategy include provincial and federal funding, and funding from less traditional areas like casinos but municipalities are largely dependent on income from property taxes and contributions to development cost charge funds. There is always caution exercised in increasing property taxes particularly when they are viewed to pay for items that are seen to be for "new" residents. While it is possible to cover all capital costs through property tax, it is, in reality, not practical to do so. Common practice is that property tax rates are set to cover operating costs and a portion of capital costs but not all capital costs associated with growth. For a lot of local governments, there is a compelling reason to try and make growth pay for the costs of growth. The practice of seeking amenities or financial contributions from development projects is becoming more common in B.C. but is not universally accepted as appropriate. Those on the development side tend to view fees and infrastructure costs as burdens and point to them as a contributing factor in the increase of housing in Metro Vancouver. They feel that it is unfair to charge new development for the amenities that benefit the whole community and should, therefore, be funded by the whole community or at least to make a "fair" contribution to those costs. Local government, on the other hand, is struggling to fund the needs of growing communities and provide both "hard" and "soft" infrastructure to their citizens in a fiscally responsible way. Traditional tools such as capital programs and the collection of DCC's are proving to stretch the limits of municipal coffers and their ability to deal with development pressures. 2 There are basically three main tools available to municipalities which allow them to acquire infrastructure from growth. They are: • Direct provision of works or lands; • Development Cost Charges; • Zoning based contributions or amenity zoning Direct provision of works or lands is the most routine method used for the acquisition and construction of infrastructure. Development projects are required to construct or pay for works and services that are adjacent to development sites or that are directly required to serve the proposed development. Section 941 of the Local Government Act also enables municipalities to require the dedication of 5% of the site area for parkland dedication. Council is familiar with both these methodologies as they are regularly used in development projects in Maple Ridge. Development Cost Charges are a means of collecting fees from all projects so that these fees can be pooled to fund area wide infrastructure improvements necessitated by growth. DCC's can be collected for water, sewer, roads, drainage, and park land acquisition; must be expended on the purpose for which they were levied; and must be spent within the geographic area in which they were collected. DCC's cannot be used to raise revenue for recreational facilities, cultural facilities, library, emergency service facilities or other important community facilities. Council is familiar with DCC's and their application as they are regularly used in Maple Ridge. Zoning based contributions or amenity zoning is an area that some municipalities have investigated in order to acquire funding for those items that are not provided for through the other two areas of funding mentioned. As indicated earlier, the ability to use amenity or density bonusing is given through Section 904 of The Local Government Act. This section indicates that the zone should specify the number, kind, and extent of amenity that is being provided. This suggests that amenities should be well-defined and in the form of an actual physical amenity provided on the site that is contributing. For example, a childcare space or open space could be provided on the development site making the contribution. However, and particularly in Maple Ridge, many development projects are too small to actually accommodate a physical amenity on site or the amenity is too large to be accommodated on the site. Consequently, some municipalities have developed a cash -in -lieu approach to contributions so that every project can obtain bonus density by contributing to a fund that is used to provide community amenities. While there are different ways to structure an amenity or density bonus zoning system, the principle behind them is basically the same - the Zoning Bylaw defines a base density that can be achieved without an amenity contribution and then defines additional density that can be achieved if the project provides an amenity (or cash -in lieu). In all cases, the development must still meet all other requirements of the development process and the Zoning Bylaw. What are the underlying l2rincioles of amenh z nin . While the legislation is not specific in the basic tenets of an amenity zoning approach, the Provincial Government issued some clarifying guidelines in 1997 soon after Section 904 was added. Those guidelines combined with municipal experience since then have created some guiding principles for this approach. They are: • The amenity should benefit the area in which it is located so that the neighbourhood which is absorbing the new growth is the recipient of the benefit; • Density bonuses should not be used to fund infrastructure that would normally be funded by property taxes, DCC's or other mechanisms; • Municipalities are discouraged from using density bonuses as a means of raising cash and were advised that a bylaw requiring money in exchange for development could be declared invalid. This does not preclude pooling of contributions to achieve a larger amenity but a municipality must clearly define the purpose of and reason for the cash contribution; • Base zoning levels should not be so low that all rezonings are required to provide an amenity i.e. basic zoning rights to build a suitable building in a particular zone should be retained; • Specificity of the type of amenities being requested is necessary for transparency; • Amenity zoning can be applied throughout the municipality or be tailored for specific areas; • Recouping the entire value attributed to a property after a rezoning occurs (commonly known as lift) is unlawful. Some municipalities attempt to recoup this "lift" in value through "voluntary" contributions but legal advice indicates that this is unlawful; • Formulas for achieving amenity zoning should be clear, well thought out and easily accessed. Implementing amenity zoning will require changes to the Zoning Bylaw. This can be done in two ways - a site by site approach or a more comprehensive approach which defines zoning districts with specific density and amenity provisions that are applied to an entire area. Either approach requires more analysis and examination to determine the financial implications of amenity zoning in a particular municipality. An analysis of the financial implications and the appropriate system for the municipality has been the approach used in other municipalities in Metro Vancouver as they implement an amenity based zoning system. There is currently a review and refresh of the Zoning Bylaw underway and it may be possible to incorporate this issue into that review. There will be points of discussion and clarification as the issue unfolds and incorporation of this issue will extend the timeframe for completion of the Zoning Bylaw review. Currently, the Zoning Bylaw was projected to be at a fall public hearing. A review of zoning for. amenities will include identification of areas in which a program would be applicable; zones that need to be revised; a financial analysis and review of that analysis by an expert in that field; etc. As that work will be done internally and is not currently part of the Zoning Bylaw process, it will extend that review into 2012. What are common practices in other communities? The following are examples of some of the practices being utilized by municipalities in Metro Vancouver. 1. Surrey - used in new residential development areas. Zoning allows developers to build low density residential development with no amenity contribution or build higher density in exchange for cash contributions toward parkland development, library books, community buildings, etc. The amount of higher density given and the expected amenity are laid out in the Zoning Bylaw so sites can develop without rezoning. This eliminates the zoning "risk" for the developer; 2. Burnaby - allows bonus density in multi -family zones in their four town centers. The zones specify a base density that can be built with no amenity contribution and additional density that can be built if an amenity is offered. Developers interested in building the bonus density are required to rezone in a comprehensive development zone for each site. Burnaby calculates the value of the additional floorspace on a case by case basis and asks for amenity contributions for each project. Amenity categories are contained within the Zoning 2 Bylaw and staff suggest to the developer which type of amenity would be appropriate. This approach is labour intensive and requires case by case analysis. 3. Vancouver - operate under different legislation than other communities so their approach is not transferable to communities outside Vancouver. They currently expect $3 per square foot from smaller, simpler rezoning outside of the Downtown and negotiate for either cash or in - kind community amenity contributions for all other rezoning. 4. New Westminster - have been negotiating amenity contributions from all rezoning on a site by site basis. They are working towards a more comprehensive approach for larger, more complex applications. 5. Port Coquitlam - considering applying amenity provisions in one townhouse zone after receipt of their report on amenity contributions from a consultant. Regardless of the approach taken, most municipalities have reviewed this subject with the aid of a consultant who examines the various methodologies used; analyzes the local development projections; and calculates the amount of cash contribution or amenity provisions that are appropriate for the local community. If Council chooses to incorporate zoning for amenities into the Zoning Bylaw review, it is intended that the review would be largely conducted internally with advice and review being sought for the financial implications. This would ensure that the outcome was thorough, transparent and tailored for Maple Ridge. What is the context for Maole Ride? The Official Community Plan acknowledges the community need and benefits that may be achieved by utilizing amenity or density bonusing. Section 2.3 Financial Sustainability indicates that efficiencies can be accomplished by "identifying potential sources of non-traditional revenues to diversify the tax base." Policy 3-30 says: "Maple Ridge will undertake a further study to consider density bonusing as a means of encouraging the provision of affordable, rental and special needs housing and amenities." Section 11.1.2 Official Community Plan Implementation Strategy also acknowledges that a study on density bonusing would be a part of the strategy dependent on Council decisions during business planning. The Official Community Plan also offers a density transfer provision in the Albion Area Plan section for the preservation of environmentally sensitive lands. Under this provision, current zoning is utilized and property owners have the potential to transfer a maximum of 2.5 units per net hectare to a more buildable part of the land thereby protecting the environmentally sensitive lands. This provision has not been widely used in Albion but has been effective in some situations. Additionally, it applies to the entire area and it is clearly laid out so that the terms of the transfer are evident to all involved. When the RM-6 Regional Town Centre High Density Apartment Residential zone was created, density bonusing provisions were built into the zone in order to encourage certain forms of development in the Town Centre. Extra density was added to the building for providing parking in an underground structure, non -market housing units, and for achieving various levels of LEED rating system. The District did not receive any community amenities from this increase but chose to have all the benefits attached to the individual property. As with the example in Albion, the regulations are adopted within the Zoning Bylaw, apply to all who may use this zone and are plainly evident to anyone who may wish to use them. One of the issues that will need to be factored into any approach to amenity or density bonus zoning is the need to base the amenity provisions on factors that are attractive to the developer so that they will want to utilize the provisions. In any amenity approach, the developer must be able to easily analyze the benefit of the extra density and measure that against the cost of the amenity. The density is the valuable factor in that formulation. At this time in the development of the community, increased density has not been a factor sought after by the market thereby rendering the increased density bonusing aspect potentially unattractive from a financial viewpoint at this time. This may not be the case in the future. Additionally, as the developer should easily be able to identify the benefits, so should the community. The community benefits from granting extra density must be clearly evident to all involved. The methodology, the locations in which the bonus applies, the amount of the bonus and the value of the amenity received must be identifiable and publically accepted. All of these issues should be discussed and analyzed for their applicability to Maple Ridge as a strategy is formulated. Option This report is intended to be a platform for discussion on this issue. The following are two options for consideration: 1. Receive this report and defer the further discussion of the issue to a time in the future when its application may be more imminent; 2. Direct staff to incorporate provisions for zoning for amenities as part of the Zoning Bylaw review currently underway. CONCLUSIONS: Zoning for amenities is a legitimate zoning and financing tool provided for in The Local Government Act that has been utilized by some municipalities to help in dealing with growth issues and providing infrastructure for communities. There are many varying factors associated with establishing an effective program that provides benefits to both the community and the developer. The type of amenities being requested and where the program applies are among the areas of clarification that will be required as a program is developed. Two options to address zoning for amenities are provided for Council consideration. 7kanqg, MCP, MCIP r QAPlannin9,----\ Approved by. Quinn, MBA, P.Eng G Public W rks & D io ent Services Concurrence: J.L!(Jim) Rule Chief Administrative Officer Deep Roots District of Maple Ridge Greater Heights TO: His Worship Mayor Ernie Daykin MEETING DATE: and Members of Council FILE NO: FROM: Chief Administrative Officer MEETING: SUBJECT: Area Planning Prioritization Report *A00l11[►yj:&INulul_1:0 May 16, 2011 Workshop On January 24, 2011 Council endorsed the 2011 Council Matrix which identifies key items that are of particular interest to Council. Item 46 on the Matrix identifies that a report of the prioritization of future area plans would be considered and discussed at the Council Workshop scheduled for May 16, 2011. In providing a framework for the discussion, this report recaps Council's recent adoption of the Area Planning Assessment Policy which provides guidance on how to choose and prioritize the next area plans to be undertaken. It also provides background information on work items identified in the Official Community Plan to assist in project prioritization. In particular, the Official Community Plan includes the District's Regional Context Statement, within which a commitment to undertake a Comprehensive Strategy is embedded. RECOMMENDATION: That the report entitled "Area Planning Prioritization Report" dated May 16, 2011 be received as information and discussion. BACKGROUND: Official Community Plan • Implementation Policies The Official Community Plan includes a commitment to utilize an area planning framework as a means to guide development in the Community. Chapter 11 of the Official Community Plan contains the Implementation Strategy for the Official Community Plan. It is noted that the OCP identifies a number of projects that require further study', recognizing that the timing of the projects, roles and responsibilities will be considered in relation to the Corporate Strategic Plan, and determined by Council during Business Planning. Section 11.1.3 of the Official Community Plan identifies that many of the policies are inter- connected and inter -dependant, and due to this relationship, require a Comprehensive Strategy for implementation. Those policies are: 1 Many of these projects have been completed or are underway -1- 4A 11 - I Maple Ridge will collaborate with agencies, including the Agricultural Land Commission and the Greater Vancouver Regional Board, and the community to develop a comprehensive strategy to further community objectives. The comprehensive strategy will include: i) the completion of an agricultural plan that will form the foundations for the comprehensive strategy, and will inform decisions regarding further studies, including item (ii) and (iii) as follows; ii) an Urban Area Boundary Review; and iii) commercial and industrial land use strategy. 11 - 2 The comprehensive strategy will be evaluated by a balanced triple bottom line analysis that considers economic, community and environmental issues. The strategy will also identify conflicts that may arise with and between issues, and include an assessment of advantages and disadvantages to assist Council with decision making. As noted above, many of the projects identified in the Official Community Plan are inter -connected and inter -dependant on the completion of the projects identified in the Comprehensive Strategy. To date the Agricultural Plan has been adopted (December 15, 2009) and many of the issues related to the Urban Area Boundary were addressed over the past 2 years through the review of the draft Regional Growth Strategy. However, the Commercial and Industrial land use strategy remains outstanding. • Regional Context Statement Section 1.4 of the Official Community Plan contains the District's Regional Context Statement. The Regional Context Statement identifies the linkages between the District's Official Community Plan Policies and the Regional Growth Strategy (the Livable Region Strategic Plan). During the Official Community Plan review, Council noted a commitment to improving the jobs to housing ratio in the community, and agreed to collaborate with the Region and the Agricultural Land Commission to develop a comprehensive strategy to further its objective. The relevant policy reads as follows: Section 1.4, Protect the Green Zone, d) "In order to improve the jobs to housing ratio in the community and to remain a vigorous partner in the regional economy, Maple Ridge will collaborate with the GVRD and the Agricultural Land Commission to develop a comprehensive strategy to further community objectives. The strategy will include the completion of an agricultural plan that will inform decisions regarding the Urban Area Boundary, and a commercial and industrial lands strategy (Policies 11-1 and 11-2). Should the conclusion of these strategies determine that lands most suitable for employment generation are located within the LRSP Green Zone, Maple Ridge will amend its Official Community Plan to provide for employment development on such lands. At the same time Maple Ridge will explore opportunities for additions to the Green Zone." WA • Area Plan Policies As mentioned above, the Official Community Plan contains policies that guide area planning in the community. Chapter 10.1 identifies what an area plan is; identifies areas for consideration of an area planning process; and highlights the elements to be contained in an area plan. Those policies a re: 10 - 1 The historic communities identified in the Historic Communities Figure (Figure 1) will form the general boundaries for the preparation of future area plans. The area plans map (Figure 6) identifies existing and future area plans. This figure does not preclude the District from undertaking an area plan for any other portion of the District. (refer to Figures 1 & 6 attached) 10 - 2 Maple Ridge will initiate the creation of area plans as a means to guide development: a) The Regional Town Centre will be one of the first area plans due to its significance and high capacity to accommodate residential growth; b) Priority consideration will be given to an area in transition, neighbourhoods that present the greatest opportunities for redevelopment, or areas where Guide Plans are in existence; c) Area plans will be developed for the historic communities of Maple Ridge including Hammond, The Ridge, Port Haney/Haney, Albion, Yennadon, Webster's Corners, Whonnock and Ruskin; d) The Thornhill area is recognized as a Historic Community that will require an area plan prior to urban development occurring in the area. This area plan is a long- term priority for the District and will be initiated in accordance with the Thornhill Urban Reserve policies of the Official Community Plan; and e) Subsequent area plans will be based on a consideration of each area's suitability for accommodating residential intensification. 10 - 3 Area Plans will be developed utilizing a consultative approach that involves working cooperatively with Provincial and Regional agencies, School District, community groups, and residents and will include, but not be limited to the following: a) policies relating to the types and form of development, land use patterns, and phasing, b) physical inventory of the site including an assessment of environmentally sensitive areas, ecosystems and the impact of development; c) an assessment of existing and future infrastructure, and a fiscal impact analysis study, d) a transportation study that addressees road connections, transit and alternate modes of travel, and connections to the Regional Town Centre; e) an assessment of parks and open space; and f) the provision of community amenities. -3- The Area Plan map in the Official Community Plan identifies the location of existing and future area plans in the Community. Identified on this map are Silver Valley and Albion with existing area plans. The Town Centre2, Albion Flats and Thornhill are identified as Future Area Plans. Policy 10-2(d) notes that an area plan for Thornhill is a long term priority for the District, and is subject to the Urban Reserve policies contained in the Official Community Plan. Area Planning Assessment Policy 6.30 In October 2009 Council directed that an Area Planning Assessment policy be created to provide a framework to assist Council in the selection of future area planning locations. On October 26, 2010, the Area Planning Assessment Policy was adopted (Policy 6.30) recognizing that there is a likelihood that the number of requests for area planning may exceed staffing and budgetary resources, and the policy was established to help Council in its selection. The Policy states that the decision to undertake an area plan is at Council's discretion. Generally speaking, the policy notes that area planning priority would be given to area that demonstrated certain characteristics, such as the area is in transition, is experiencing demographic changes, or changing student enrolment. The Policy also states that requests for area planning should be considered as a package during Business Planning, and that requests made outside of a Business Planning Cycle, and/or during an active area planning process would be considered premature and held until the appropriate Business Planning Cycle. The policy notes that the District will typically undertake one area planning process at a time and an area planning process should not be undertaken during an Official Community Plan review (refer to Area Planning Assessment Policy, 6.30 attached). iii. Albion Flats The Official Community Plan identifies that the Albion Flats is an area of interest due to its strategic location within the community, and further identifies that Maple Ridge intends to work with Metro Vancouver and the Agricultural Land Commission to determine the future land use of the area through an area planning process. In January 2010, Council directed that staff proceed with an area plan for the Albion Flats, utilizing a Concept Plan approach. The process was based on two phases: the first being the Concept Plan development phase; and the second is the Area Planning phase. The goal was to prepare a preliminary concept plan for submission to the Agricultural Land Commission for consideration. Following the Agricultural Land Commission decision, then Phase 2, the Area Planning phase would commence. The Area Planning phase is the step in the process where refinements to the land use plan would be made, and policies in support of the Concept Plan would be established for inclusion as a Chapter in the Official Community Plan. As Council is aware, on May 2, 2011 the draft Albion Flats Concept Plan was endorsed for the purpose of submission to the Agricultural Land Commission, and the submission materials were sent to the Commission later that same week. Based on feedback from the Agricultural Land Commission the project would move forward through an exclusion application. Following that, the Area Planning phase of the study would begin. It is noted that the area planning phase typically takes one year. In applying these standard rules of thumb, it is anticipated that the Albion Flats Area Plan would be adopted by bylaw as a chapter in the Official Community Plan in the fall or winter of 2012. 2 The Town Centre Area Plan was adopted November 4, 2008 11112,121 DISCUSSION The District's Official Community Plan identifies a number of studies to be undertaken to advance community goals and objectives. The Plan also acknowledges that many of these studies are inter- connected and inter -dependant on one another, recognizing that the findings or recommendations in one plan, have implications on another. For this reason, the Official Community Plan contains a Comprehensive Strategy, and this strategy is embedded in our Regional Context Statement. As mentioned earlier in this report, the Comprehensive Strategy is intended to assist Council in its decision making, recognizing that conflicts may arise between issues. To date, the first steps in the Comprehensive Strategy have been addressed. However, the Commercial and Industrial land use strategy remain outstanding, with the Albion Flats study taking precedence. The Area Planning Assessment Policy suggests that requests for area planning be considered as a package during business planning, and that such requests should not be considered during an active area planning process. Given that the Albion Flats Concept Plan has been recently referred to the Agricultural Land Commission for comment, and the likelihood that the Area Planning phase of this project will continue through 2012, Council may wish to focus on finalizing this project before diverting resources to another Area Plan. Given the importance of the Comprehensive Strategy outlined in the Official Community Plan, and the commitment that was made to complete the strategy in the Regional Context Statement, Council may also wish to complete the Commercial and Industrial Lands Strategy prior to proceeding with another area plan. AREA PLAN OPTIONS Should Council wish to identify the location of the next Area Plan to be undertaken in the community, it is recommended that the Official Community Plan and Area Planning Assessment Policy be used to guide this decision. The Official Community Plan policies suggest that area plans be prepared for Historic Communities in the District including Hammond, The Ridge, Haney/Port Haney3, Albion4, Yennadon, Webster's Corners, Whonnock and Ruskin. The Official Community Plan and Area Planning Assessment policies also suggest that focus be given to areas that exhibit certain characteristics. In addition, through the Albion Flats discussion, the Albion Industrial Park was raised as a potential future area plan. Pursuant with item 3 in the Area Planning Assessment Policy, should Council wish to proceed with the location of the future area plan at this time, staff could be directed to prepare a report assessing each areas compliance with the policies and identifying emerging issues in the community. 3 Included in the Town Centre Area Plan 4 The Albion Area plan is a chapter in the Official Community Plan. 16'i CONCLUSION: This report provides an overview of the Official Community Plan policies and the Comprehensive Strategy contained within the Plan. The Albion Flats process is well underway, and is anticipated to continue over the coming year. Given these factors, it is suggested that Council may wish to consider continuing to focus the District's budget and staff resources on completing the Albion Flats Area Planning, and then proceeding with the Commercial and Industrial land use strategy. Prepared by: Christine Carter, MPI. MCIP Manager,Corr}munity Planning , MCIP --J ❑i Planning Approveadby. Frank Quinn, MBA, P.Eng. GM: Public Works & Development Services Co currence: J.L. (Jim) Rule Chief Administrative Officer CC/cc Attachment - Official Community Plan Figures 1 & 6 Area Planning Assessment Policy 6.30 lz \§W�! =ma oo`e U) LU a - EE§§§ c \ \/k§ - . 2 e |§ ¥ § ) \) . m `) , _ } 2 . . � ! § , Is,/ § 2 ^ � E _ 10 ' b � I / % — � � $ § � § ,. . R - � � / [ \ � 3 * 'i \ \ ■ § , ! I ;E - �� Title: Area Planning Assessment Authority: ® Legislative ❑ Operational Approval: ® Council Policy Statement: ❑ CMT ❑ General Manager POLICY MANUAL Policy No: 6.30 Supersedes: New Effective Date: October 27, 2010 Review Date: 2011 The District of Maple Ridge is committed to preparing area plans in Maple Ridge. Recognizing that there is a likelihood that the number of requests for area plans may exceed staffing and budgetary resources, the following policy has been created to assist Council in its selection: 1. The decision to undertake an area plan is at Council's discretion. 2. Area Planning priority will be given to an area that exhibits some or all of the following criteria: i. that is in transition; experiencing increases in development applications that are inconsistent with the Official Community Plan; or is impacted by policy changes, demographic changes, or significant transportation/infrastructure improvements to the area; ii. that does not have an existing Area Plan; iii. where the area plan is intended to further the goals and objectives identified within the Official Community Plan, or is identified as a future work item in the Official Community Plan; iv. with changing student enrolment in the School District catchment area; V. where the project is consistent with the Corporate Strategic Plan and Council adopted Business Plans. 3. Requests for area planning are to be considered as a package during Business Planning. Requests received outside of the business planning cycle, and/or during an active area planning process will be considered premature, and will be held until the appropriate Business Planning cycle. All requests will be accompanied by a staff report assessing the areas compliance with the "Area Planning Assessment Policy". The report will also identify emerging issues in the community that may pertain to the request. 4. Once an area has been selected to undergo an Area Planning Process, a staff report identifying the public consultation process; elements and issues to be addressed in the Plan; geographic boundary of the planning area; and scale of detail to be incorporated in the Land Use schedule will be prepared for Council's endorsement. 5. The District will typically undertake one area planning process at a time, and an area planning process should not be undertaken during an Official Community Plan review. Page 1 of 2 Policy 6.30 Purpose: To provide a framework to assist Council in the selection of an area(s) for future area planning. Definitions: Area Planning - is defined in the Maple Ridge Official Community Plan as "an Official Community Plan that applies to a local planning area". Refer to Chapter 10.1 of the Official Community Plan. Planning Area - refers to the geographic area being requested, and/or considered for an area planning process. Key Areas of Responsibility Action to Take Responsibility Page 2 of 2 Policy 6.30