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HomeMy WebLinkAbout2014-10-20 Workshop Meeting Agenda and Reports.pdfCity of Maple Ridge 1.ADOPTION OF THE AGENDA 2.MINUTES –October 6, 2014 3.PRESENTATIONS AT THE REQUEST OF COUNCIL 3.1 4.UNFINISHED AND NEW BUSINESS 4.1 Managing Cellular and Radio Tower Installations Presentation by Michael Krenz, Director Coastal Offices, Spectrum Management Operations Branch, Industry Canada Staff report dated October 20, 2014 providing background information on Industry Canada’s responsibilities and outlining questions raised in Council discussions. COUNCIL WORKSHOP AGENDA October 20, 2014 9:00 a.m. Blaney Room, 1st Floor, City 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 October 20, 2014 Closed Council 11:00 a.m. Committee of the Whole Meeting 1:00 p.m. October 21, 2014 Public Hearing 7:00 p.m. Council Workshop October 20, 2014 Page 2 of 4 4.2 Recommendations re: Council Advisory Committees Staff report dated October 20, 2014 recommending that staff be directed to prepare the necessary bylaws to enact the recommendations of the Advisory committee Task Force. 4.3 Development Services Resources Staff report dated October 20, 2014 recommending that staff be directed to implement the addition of 4 new positions in Development Processing with the funding source as outlined in Table 3 of the report. 4.4 Silver Valley Area Plan Update 2014 Staff report dated October 20, 2014 providing an overview of the Silver Valley area as it has progressed since the initial adoption of the area plan in 2002. 4.5 2014 Business Class Property Taxation Staff report dated October 20, 2014 providing information on the municipal portion of the tax rate assessed to Business Class properties in 2014. For information only No motion required 4.6 2014 Major Industry Class Property Taxation Staff report dated October 20, 2014 providing information on the current 2014 Major Industry Class municipal tax rate for the City of Maple Ridge. For information only No motion required 5.CORRESPONDENCE 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. 5.1 Council Workshop October 20, 2014 Page 3 of 4 6.BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7.MATTERS DEEMED EXPEDIENT 8.ADJOURNMENT Checked by: ___________ Date: _________________ Council Workshop October 20, 2014 Page 4 of 4 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 enforcement, if 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 affecting the 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; (j) 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; (l) 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. City of Maple Ridge COUNCIL WORKSHOP October 6, 2014 The Minutes of the City Council Workshop held on October 6, 2014 at 9:28 a.m. in the Blaney Room of the City Hall, 11995 Haney Place, Maple Ridge, British Columbia for the purpose of transacting regular City business. PRESENT Elected Officials Appointed Staff Mayor E. Daykin J. Rule, Chief Administrative Officer Councillor C. Ashlie K. Swift, General Manager of Community Development, Councillor C. Bell Parks and Recreation Services Councillor J. Dueck P. Gill, General Manager Corporate and Financial Services Councillor A. Hogarth F. Quinn, General Manager Public Works and Development Councillor B. Masse Services Councillor M. Morden C. Marlo, Manager of Legislative Services A. Gaunt, Confidential Secretary Other Staff as Required L. Benson, Manager of Sustainability and Corporate Planning J. Bergmann, Research Technician C. Carter, Director of Planning F. Armstrong, Manager of Corporate Communications Note: The meeting is being recorded for public record and the minutes are posted on the City’s website at www.mapleridge.ca Note: Councillor Morden was not in attendance at the start of the meeting 1.ADOPTION OF THE AGENDA The agenda was adopted as circulated. 2.MINUTES R/2014-430 Minutes It was moved and seconded September 15, 2014 That the minutes of the Council Workshop Meeting of September 15, 2014 be adopted as circulated. CARRIED 2.0 Council Workshop Minutes October 6, 2014 Page 2 of 3 3. PRESENTATIONS AT THE REQUEST OF COUNCIL – Nil 4. UNFINISHED AND NEW BUSINESS 4.1 Employment Land Investment Incentive Program Staff report dated October 6, 2014 recommending that bylaws and regulations to initiate the Employment Land Investment Incentive Program be referred to the October 14, 2014 Council Meeting for first, second and third readings and that bylaws and regulations to extend the Town Centre Investment Incentive Program to referred to the October 14, 2014 Council meeting for first, second and third readings. Note: Councillor Morden joined the meeting at 9:30 a.m. The Manager of Sustainability and Corporate Planning gave a PowerPoint presentation providing details on the proposed Employment Land Investment Incentive Program. She outlined the background of the program, advised on the key principles and clarified which uses will be considered ineligible. She also advised on the timeline for the project. Note: The meeting was recessed at 10:35 a.m. and reconvened at 2:28 p.m. Note: Councillor Ashlie and Councillor Morden were not in attendance at the start of meeting. Councillor Ashlie joined the meeting at 2:30 p.m. Councillor Morden joined the meeting at 2:37 p.m. Discussion on the Employment Land Investment Incentive Program continued when the meeting was reconvened. R/2014-431 Employment Land Investment It was moved and seconded Incentive Program 1. That the enabling bylaws and regulations to initiate the Employment Land Investment Incentive Program as described in the October 6, 2014 report “Employment Land Investment Incentive Program” be brought forward to the October 14, 2014 Council meeting for consideration of first, second and third readings. Council Workshop Minutes October 6, 2014 Page 3 of 3 2. That the enabling bylaws and regulations to extend the Town Centre Investment Incentive Program be brought forward to the October 14, 2014 Council meeting for consideration of first, second and third readings. CARRIED Councillor Bell - OPPOSED 5. CORRESPONDENCE 5.1 British Columbia Achievement Foundation Nominations Letter dated September 2, 2014 from Christy Clark, Premier, Province of British Columbia, Board Member, British Columbia Achievement Foundation inviting nominations for the British Columbia Community Achievement Awards. R/2014-432 BC Achievement Foundation It was moved and seconded Awards That the letter dated September 2, 2014 inviting nominations for the British Columbia Community Achievement Awards be received for information. CARRIED 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL – Nil 7. MATTERS DEEMED EXPEDIENT – Nil 8. ADJOURNMENT – 2:57 p.m. _______________________________ E. Daykin, Mayor Certified Correct ___________________________________ C. Marlo, Corporate Officer City of Maple Ridge TO: His Worship Mayor Ernie Daykin MEETING DATE: October 20, 2014 and Members of Council FROM: Chief Administrative Officer MEETING: Workshop SUBJECT: Industry Canada Presentation EXECUTIVE SUMMARY: Industry Canada is the Federal agency responsible for licencing radio installations, whether they be cellular towers or radio antenna systems. Mr. Michael Krenz, Director Coastal Offices, Spectrum Management Operations Branch, of Industry Canada has agreed to present to Council on the context of managing cellular and radio tower installations, and how the regulatory environment is changing. Staff believe it would be helpful to have a review from the regulatory body of the legislative context, and may assist in defining where and how far the City can go in truly ‘regulating’ such installations. RECOMMENDATION: For information only, DISCUSSION: Industry Canada is the Federal regulatory authority for radio installations. During the review of a radio installation, Industry Canada requires the proponent to consider the views of local government and the neighbourhood. To consider community views on installations, Industry Canada has a ‘default’ consultation process that a proponent can follow, and this has been used in the past at the City. In 2012, Council wanted to develop a more detailed consultation process and adopted our own protocol in November. Although our protocol provides more direction on what is of importance to Maple Ridge, there are still some limitations on issues that the Federal authority considers valid. However, staff have not had an opportunity to utilize our protocol fully, and are awaiting further legislative changes before reconsidering alterations. However, some members of Council have expressed interest in a more formal control regime over all tower and antenna installations than contemplated earlier. Questions that have been raised in Council discussions: - What towers are exempt from public consultation or siting review? - What public concerns are limited in terms of their consideration by Industry Canada? - Are there limitations on what a local government can consider when it comes to reviewing and supporting, or not, an installation? - Are tower installations built to a building code? And how are inspections carried out? 1 4.1 - What is Industry Canada’s expectations of us? The presentation, and subsequent question and answer session, should answer these questions. Our protocol will be updated and brought back for Council’s consideration as required. “Original signed by J. Bastaja”______________________ Prepared by: J. Bastaja, Director Corporate Support “Original signed by P. Gill”__________________________ Approved by: P. Gill, General Manager, Corporate and Financial Services “Original signed by J.L. (Jim) Rule”____________________ Concurrence: J.L. (Jim) Rule Chief Administrative Officer 2 City of Maple Ridge TO: His Worship Mayor Ernie Daykin MEETING DATE: October 20, 2014 and Members of Council FILE NO: FROM: Advisory Committee Task Force MEETING: Council Workshop SUBJECT: Recommendations Re Council Advisory Committees EXECUTIVE SUMMARY: At the April 7, 2014 Council Workshop an Advisory Committee Task Force consisting of the Mayor, Councillor Dueck and Councillor Hogarth was formed to review the Advisory Committees of Council and to make recommendations to Council on each Committee. The Task Force met with the staff liaisons of each of the eight committees under review and developed recommendations for the Committees. The Task Force met 7 times since that April 7 meeting and are presenting recommendations to Council for consideration. Recommendations are being made to bring consistency to the bylaws of the committees, to make adjustments to the individual bylaws of the Heritage Commission and the Social Planning Advisory Committee, to repeal the Bicycle Advisory Committee bylaw, and to establish two new committees, the Integrated Transportation Advisory Committee and the Environmental Sustainability Advisory Committee. RECOMMENDATION: That staff be directed to prepare the necessary bylaws to enact the recommendations of the Advisory Committee Task Force as detailed in the staff report dated October 20, 2014. DISCUSSION: a)Background Context: Following the formation of the Advisory Committee Task Force (“the Task Force”) at the April 7, 2014 Council Workshop, the Task Force reviewed background information on each of the committees and met with the staff liaisons. As directed by Council, the following committees were reviewed: •Agricultural Advisory Committee •Community Heritage Commission •Cycling and Pedestrian Advisory Committee (proposed new committee) •Economic Advisory Commission •Municipal Advisory Committee on Accessibility Issues •Social Planning Advisory Committee •Public Art Steering Committee •Environmental Advisory Committee (proposed new committee) 4.2 The following committees were not reviewed: •Parks & Leisure Services Commission (subject of a separate review of Joint Parks & Leisure Services) •Advisory Design Panel (legislated by Local Government Act) •Audit & Finance Committee (this committee functions in a different manner, allowing Council members a focused conversation with the external auditor) •Liaison appointments to community organizations Listed below are the changes suggested: 1.Amend all bylaws to: a.include 1 council liaison for committees with 6 voting members or less (not counting council liaison) or two council liaisons for committees with 7 voting members or more (not counting council liaisons) b.remove council liaison alternates c.require the committees to meet at least quarterly d.ensure appointments are staggered in a manner that ensures continuity in membership and remove date specific terms e. remove any language that is replicated from provincial legislation or city policy. 2.Provide a budget of a minimum of $10,000 annually to all Advisory Committees with the exception of the Economic Advisory Committee which will remain at $1,000. Currently no budget is provided to the Municipal Advisory Committee on Accessibility Issues. 3.Repeal the Bicycle Advisory Committee bylaw and replace that committee with an Integrated Transportation Advisory Committee. 4.Amend the Community Heritage Commission bylaw to remove references to the Parks Commission. 5. Create a new committee called the Environmental Sustainability Advisory Committee. 6.Amend the Municipal Advisory Committee on Accessibility issues to include in the mandate “create a more inclusive city”. 7.Amend the membership of the Social Planning Advisory Committee to a) remove a member from Community Living BC, a member from School District No. 42 senior staff, and a member from a public post secondary institution and b) to replace “A member from the Ministry of Child and Family Development” and “A member from Ministry of Housing and Development” with “Two members from provincial government social service ministries”. Attached as Appendix I is a spreadsheet listing each Committee and providing information on the structure of the committee and any changes proposed. Attached as Appendix II are information sheets on each of the eight Advisory Committees. b)Business Plan/Financial Implications: There will be financial implications from recommendations 2 and 5. $10,000 will need to be added to the budget annually for the Municipal Advisory Committee on Accessibility Issues. Budget dollars will also have to be included for the new Environmental Sustainability Advisory Committee to cover their $10,000 annual budget. As well, the hours of the Committee Clerk would have to be extended to enable clerical support of the Committee. A staff liaison would also be assigned to the Committee which will incur extra costs for that support as well. Further information is included in the information sheets within Appendix II. CONCLUSIONS: The Advisory Committee Task Force has completed its review of the eight committees identified by Council and is now seeking input from the balance of Council on the recommendations outlined in this report. “Original signed by Mayor Ernie Daykin” Mayor Ernie Daykin Chair, Advisory Committee Task Force “Original signed by Councillor Judy Dueck” Councillor Judy Dueck Member, Advisory Committee Task Force “Original signed by Councillor Al Hogarth” Councillor Al Hogarth Member, Advisory Committee Task Force :cm APPENDIX I Committee # of Mtgs / Year Budget Membership Mandate Recommended By-law Changes Agriculture Advisory Committee (AAC)9 No change $10,000 No change No change Global changes (listed below) Bicycling Advisory Committee (BAC) Community Heritage Commission (CHC) 10 No change $10,000 No change No change Remove any reference to Parks Commisison Global changes Economic Advisory Commission (EAC)10 or11 No change $1,000 No change No change Global changes Environmental Sustainability Advisory Committee (ESAC) Minimum of four $10,000 Proposed Details in Appendix II Details in Appendix II New Bylaw to be created, details in Appendix II Integrated Transportation Advisory Committee (ITAC) Minimum of four $10,000 Proposed Details in Appendix II Details in Appendix II New Bylaw to be created, details in Appendix II Municipal Advisory Committee on Accessibility Issues (MACAI) 9 $10,000 Proposed (See Info Sheet for more details). No change Addition of "create a more inclusive City" recommended. (As shown on Info Sheet). Global changes Public Art Steering Committee (PASC)11 No change $70,000 No change No change Global changes Social Planning Advisory Committee (SPAC) 11 No change $10,000 Recommend the removal of members from: Community Living BC, a public post-secondary institution and senior School District 42 staff . No change Under Membership it is recommended that "A member from the Ministry of Child and Family Development" and "A member from the Ministry of Housing and Development" be replaced with "Two members from provincial government social service ministries" Global changes Global Changes to Bylaws It is recommended that all committee bylaws be modified to adhere to the following standards: Eliminate council liaison alternates 1 council liaison for a committee with 6 members or less (not counting council liaison) 2 council liaisons for a committee with 7 members or more (not counting council liaisions) Comittees meet at least quarterly Term appointment start dates are staggered Removal of specific terms start and end dates (ie "for a term beginning Jan 1, 2009) Removal of maximum number of terms that can be served / number required for quorum / mention of conflict of interest. (These items are already specified in either policy, legislation or Robert's Rules of Order) This committee will cease and be replaced by the Integrated Transportation Advisory Committee. Advisory Committees of Council Information Sheets APPENDIX II Advisory Committees of Council Information Sheets Agricultural Advisory Committee Agricultural Advisory Committee Bylaw No: 6471-2007 Year Committee Was Formed: 2007 Annual Budget: $10,000 Number of Meetings Per Year: Minimum quarterly Nine (no meeting in July, August or December) Meeting Date, Time and Location: Fourth Thursday of the month at 7:00 pm in the Blaney Room Mandate: The Committee is appointed for the purpose of advising the Council on agricultural matters and undertaking and providing support for such activities as benefit and provide for the advancement of agricultural activities in the City. About the Committee: The Agricultural Advisory Committee works in collaboration with related agencies and organizations involved in the promotion of agriculture, the protection of farmland and the recognition of the need for food security. Membership: The Agricultural Advisory Committee is comprised of the following individuals/organizations. Voting Members: • Two members from Council; • One member nominated by the Haney Farmer’s Market; • One member nominated by the Agricultural Fair Board; • Five members actively involved in the agricultural sector appointed by Council; • A maximum of four members-at-large appointed by Council with priority given to those who reside in Maple Ridge and are knowledgeable about agriculture; • One member nominated from the Maple Ridge Economic Advisory Commission. Non-Voting Members: • One member from the Agricultural Land Commission who shall serve as a liaison and attend when available to do so; • One member from the Ministry of Agriculture, Food and Fisheries who shall serve as a liaison and attend when available to do so. Term dates will be staggered Highlights / Accomplishments: • Work on the Agricultural Plan • Promoting local agriculture Staff Time Involvement: • Committee Clerk; average of 12 hours per month. • Staff Liaison; average of 22.5 hours per month, based on 9 meetings per year. Advisory Committees of Council Information Sheets Community Heritage Commission Community Heritage Commission Bylaw No: 5908-2000 Annual Budget: $10,000 Year Commission Was Formed: 2000 Number of Meetings Per Year: Minimum quarterly Ten, there is no meeting in July or August Meeting Date, Time and Location: First Tuesday of each month at 7:00 pm in the Blaney Room Mandate: The Commission is appointed for the purposed of advising the Council on heritage conservation matters and undertaking and providing support for such activities as benefit and provide for the advancement of heritage conservation in the City. Membership: The Commission is comprised of the following membership. Voting Members: • One member from Council with a second Council liaison appointed when Commission members (excluding Council liaisons) number seven or more; • Two members from among the persons nominated by the Maple Ridge Historical Society; • Four members from the community-at-large appointed by Mayor and Council; • As many other members from persons selected by Council, nominated by citizens or organizations as Council may choose to appoint with priority given to one youth member. Non Voting Members: ● One member from among the persons nominated by the Parks and Recreation Leisure Services Citizens Advisory Committee whom shall serve as a liaison and attend when available to do so. Term dates will be staggered. Any reference to the Parks Commission will be removed from the bylaw. Highlights/Accomplishments: • Heritage Awards • Heritage Plan • Quarterly newsletter • Updating Maple Ridge Community Heritage Register • Conservation and feasibility plan for St. Andrew’s Church Staff Time Involvement: • Committee Clerk; average of 12 hours per month. • Staff Liaison; average of 15 hours per month, based on 10 meetings per year. Advisory Committees of Council Information Sheets Economic Advisory Commission Economic Advisory Commission Bylaw No: 6179-2003 Annual Budget: $1,000 Year Commission Was Formed: 2003 Number of Meetings Per Year: Minimum quarterly Ten or eleven, with no meeting in August, and December at the call of the Chair Meeting Date, Time and Location: Third Thursday of each month at 7:30 am in the North Fraser Innovation Accelerator: Suite 300- 22470 Dewdney Trunk Road. Mandate: The Economic Advisory Commission is an advisory body to Council on matters relating to the economic well-being of Maple Ridge and may make recommendations to Council relating to the economic development of the City. Commission’s Mission: The Maple Ridge Economic Advisory Commission is a diverse group of stakeholders advising on economic growth and representing the community in all aspects of economic and community development. It is an experienced and interested group of volunteers, passionate about the future of Maple Ridge and intent of serving as a beacon for local government and the community. The Commission does not directly create new economic activity or jobs, but does provide advice to the Maple Ridge Economic Development Department and city Council, with a view to influencing the local business climate, facilitating economic growth and providing guidance to the community on economic development issues. It does this by planning in a strategic manner to achieve the goals related to economic growth and sustainability. Membership: The Economic Advisory Commission is comprised of twelve Commissioners. The Commissioners are appointed by Council and are people who reside or work in Maple Ridge, with an interest in various business, educational and industrial sectors in Maple Ridge. Specific start and end dates for terms will be removed from the bylaw. Term dates will be staggered. Highlights/Accomplishments: • Attracting high value employment to Maple Ridge. • Priority focus sectors include advanced technology, tourism, education and business. Staff Time Involvement: • Staff liaison; average of 25 hours per month. Advisory Committees of Council Information Sheets Municipal Advisory Committee on Accessibility Issues Bylaw No: 5845-1999 Year Committee Was Formed: 1999 Annual Budget: $0 $10,000 proposed - $8,000 from Maple Ridge Council, with an anticipated $2,000 from Pitt Meadows Council Number of Meetings Per Year: Minimum quarterly Nine, with no meetings in July, August or December Meeting Date, Time and Location: Third Thursday of each month at 5:00 pm in the Blaney Room Mandate: The purpose of the Committee is to create a more inclusive City and to advise, inform and educate the Councils, municipal departments, community agencies and general public on accessibility and disability issues. About the Committee: The Municipal Advisory Committee on Accessibility Issues strives to remove the social, physical and psychological barriers that prevent people from fully participating in all aspects of community life. The Committee's focus is to create equal access in the areas of employment, education, housing, transportation and recreation. Projects include sensitivity training for municipal staff and residents creating a greater awareness regarding accessibility issues, public facility design consultations and an annual award program. Membership: The Committee is comprised of fifteen members. • One Councillor from the City of Maple Ridge; • One Councillor from the City of Pitt Meadows; • School Board of School District No 42; • Ministry of Child and Family Development; • Ministry of Human Resources represented by a community service provider; • Ridge Meadows Association for Community Living; • Fraser Health Authority; • Six members-at-large who are residents of Maple Ridge, or employed in Maple Ridge or are eligible to be on the Municipal voters list for the City; • 2 members-at-large who are residents of Pitt Meadows, or employed in Pitt Meadows, or are eligible to be on the Municipal voters list for the City. Term start dates will be staggered. Highlights/Accomplishments: • Annual Accessibility Awards. • Supported the Community Rick Hansen Wheels in Motion Events. • Applied for and received funding through the Rick Hansen Wheels in Motion Events for the purchase of specialized accessible equipment. Advisory Committees of Council Information Sheets Municipal Advisory Committee on Accessibility Issues • Supported the Age Friendly Communities Initiative. • Applied for and received funding through the 2010 Legacy Now Measuring Up fund (funding used to produce the Plan and Design for Choice – Universal Design Guidelines for Outdoor Spaces and the insulation of accessible play equipment at Pitt Meadows Elementary School) • Supported the 2009 Disability Games that were hosted in Maple Ridge and Pitt Meadows • Supported the 2010 Paralympic Torch Relay. • Supported the Rick Hansen Wheels in Motion 25 Anniversary event in both Maple Ridge and Pitt Meadows. • MACAI works closely with the Maple Ridge Engineering department identifying accessibility concerns within the downtown core and surrounding areas. • MACAI works Work closely with inter-municipal departments on accessibility and inclusion initiatives. Staff Time Involvement: • Committee Clerk; average of 12 hours per month. • Staff Liaison; average of 8.5 hours per month, based on 9 meetings per year. Advisory Committees of Council Information Sheets Public Art Steering Committee Bylaw No: 6659-2009 Annual Budget: $70,000 Year Committee Was Formed: 2009 Number of Meetings Per Year: Minimum quarterly Eleven, with no meeting in August Meeting Date, Time and Location: Third Wednesday of the month at 3:00 pm in the Blaney Room About the Committee: The Maple Ridge Public Art Steering Committee, established by the Municipal Council, began meeting in 2010. The purpose of the Committee is to: • Recommend criteria for the commission of public art installations to Maple Ridge Council; • Have authority for entering into agreements and contractual obligations within the limitations of approved budgets for the commission of public art installations which meet the criteria noted above; • Have authority to spend money within an annual budget approved by the Maple Ridge Council; • Submit and annual report to Maple Ridge Council by the end of May each year describing the activities of the previous year. Membership: The Committee shall be comprised of the following members. • Two artists; • An Arts Council staff member with the appropriate technical expertise to be appointed by the Arts Council Board; • One Landscape Architect, Architect or Municipal Planner familiar with public art programs; • One developer of residential or commercial properties who is active in the Municipality; • One member of Municipal Council; • One community member. Specific term start and end dates will be removed from the bylaw.Term dates will be staggered. Staff Time Involvement: • Committee Clerk; average of 12 hours per month. • Staff Liaison; average of 8 hours per month, based on 11 meetings per year. Advisory Committees of Council Information Sheets Social Planning Advisory Committee Social Planning Advisory Committee Bylaw No: 5972-2001 Year Committee Formed: 2001 Annual Budget: $10,000 Number of Meetings Per Year: Minimum quarterly Eleven with no meeting in August Meeting Date, Time and Location: First Wednesday of each month at 7:00 pm in the Blaney Room Mandate: The Committee has the mandate to enhance the social well-being of present and future residents of our community by advising Council on policy and on matters relating to social planning and the social needs, social well-being and social development of the community and by identifying and addressing social issues of concern to community residents while initiating social planning projects to enhance the community. Membership: The Committee is composed of 24 members who are appointed from the following organizations: For a one year term: • Council may appoint two Councillors, as well as an alternative;Two members from Council; • School District No. 42 will appoint a School Board trustee • Fraser Health will appoint a senior staff member with expertise in public health, mental health, continuing care and/or drug alcohol services; For a two year term: • A member from a public post-secondary institution; • A member from the Maple Ridge Pitt Meadows Katzie Community Network; • A member from the Maple Ridge Pitt Meadows Katzie Seniors Network; • A member from the Ridge-Meadows RCMP; • A member from the Ministry of Child and Family Development; • A member from the Ministry of Social Housing and Development – Income Assistance Branch; • Two members from provincial government social service ministries • A member from Community Living BC; • A member from School District No 42 senior staff; • A member from a community group for adults with development disabilities; • A member from a community group for seniors; • A member from an economically focused organization; • A member from an organization that focuses on aboriginal services; • A member from an organization that focuses on the multi-cultural community; • A member from an organization that focuses on poverty alleviation services; • Five community-at-large residents from the City; • One resident from youth-adult population 19-25 years. Advisory Committees of Council Information Sheets Social Planning Advisory Committee Highlights/Accomplishments: • Update community profile and development of Social Planning Strategic Plan • Housing Action Plan • Supporting community initiatives to obtain sustainable funding, ie Alouette Home Start Society’s Youth Safe House and Community Outreach. Staff Time Involvement: • Committee Clerk; average of 12 hours per month. • Staff Liaison; average of 50 hours per month, based on 11 meetings per year. These numbers reflect only one staff liaison’s time for this committee. • Parks & Leisure administration support; average of 10 hours per month. • Social Planning administration support; average of 21 hours per month. Advisory Committees of Council Information Sheets Integrated Transportation Advisory Committee *** NEW *** Integrated Transportation Advisory Committee (“ITAC”) Bylaw No: # Year Committee Was Formed: 2015 Annual Budget: $10,000 Number of Meetings Per Year: Four – meet quarterly Meeting Date, Time and Location: 3rd Monday of the month, 7:00-9:00 pm (Blaney) Mandate: The Integrated Transportation Advisory Committee is appointed for the purpose of advising Council on strategic priorities, planning, policies and mobility issues relating to transportation in Maple Ridge, using the Transportation Plan as a guide. The Committee shall work towards creating, promoting, and improving an efficient, affordable, and safe transportation network that supports a variety of transportation choices. About the Committee: The Integrated Transportation Advisory Committee will: • Promote public education and awareness on the benefits, necessities and safety aspects of active transportation. • Advise on matters related to active transportation as it relates to; active workplace travel, active commuting, active recreation, and active destination-oriented trips. • Promote and enhance an improved pedestrian and multi-modal path networks for all ages and ranges of mobility throughout their daily activities within the community and with its connectedness to neighbouring communities. • Encourage regulations and policy changes that support and strengthen multi-modal active transportation and transit. • Review and consider transportation policy in a regional context as it affects Maple Ridge, and provide options on how to advance, promote, and improve the moment of people and goods within the region. • Review and make recommendations to Council with regards to active transportation initiatives proposed by other levels of government and/or agencies. Membership: Members will be selected based on their demonstrated interest and participation in community and transportation matters, availability, work experience and knowledge or professional expertise. Voting Members: • Two members from Council; • One member from Chamber of Commerce • Three members-at-large • One member-at-large with a cycling interest • One member representing the seniors’ community • One youth representative (youth defined as “enrolled in, or less than two years since graduation from post-secondary” • Ridge Meadows RCMP Staff Involvement: • Staff Liaison from Engineering • Committee Clerk Advisory Committees of Council Information Sheets Environmental Sustainability Advisory Committee *** NEW *** Environmental Sustainability Advisory Committee (ESAC) Bylaw No: # Year Committee Was Formed: 2015 Annual Budget: $10,000 Number of Meetings Per Year: Four – meet quarterly Meeting Date, Time and Location Suggestion: 2nd Wednesday of the month, 7:00-9:00 pm (Blaney) Mandate: The Environmental Sustainability Advisory Committee is appointed for the purpose of advising Council on the protection, enhancement, conservation and appreciation of our community through planned environmental sustainability which will provide a healthy community for present and future generations. About the Committee: The Environmental Sustainability Advisory Committee will use the Environmental Management Strategy to guide, advise and make policy recommendations including: •Conserving and enhancing Maple Ridge’s natural landscape. •Promote public education and awareness of environmental issues. •Advocating responsible environmental practices and promoting sustainable policies. •Review and make recommendations to Council with regards to environmental initiatives proposed by other levels of government and/or agencies •Measures to address climate change. Membership: Members will be selected based on their demonstrated interest and participation in community and environmental matters, availability, work experience and knowledge or professional expertise. Voting Members: •Two members from Council; •One qualified environmental professional •One member from ARMS (Alouette River Management Society) •One member from KEEPS (Kanaka Education and Environmental Partnership Society) •One member from Chamber of Commerce •One member from the Urban Development Institute •Four members-at-large with an environmental interest Staff Involvement: •Staff Liaison from Planning •Committee Clerk District of Maple Ridge TO: His Worship Mayor Ernie Daykin MEETING DATE: October 20, 2014 and Members of Council FILE NO: FROM: Chief Administrative Officer MEETING: Workshop SUBJECT: Development Services Resources EXECUTIVE SUMMARY: Since the mid 1990’s the City of Maple Ridge has been consistently recognized as a leader in Business Planning. These award winning Business and Financial Plans have consistently strived to balance needs with cost containment. Most recently through tougher economic times Council has strived to reduce tax increases while at the same time maintaining levels of service. Requests for additional staff resources have been tempered by the reality of the potential property tax implications. In response to Council’s direction, incremental packages have been limited. At the same time, the City has pursued an “Open for Business” perspective that stresses the necessity of keeping the costs of development low as well as providing incentives to attract development investment. These incentives include reduced building permit fees, reduced application fees, development cost charge rebates and tax exemptions. The National Association for Industrial and Office Parks (NAIOP) is one of North America's largest real estate organizations. Each year NAIOP surveys local municipalities for development application fees and process timing. The 2013 NAIOP survey shows that Maple Ridge has some of the lowest fees when the subdivision, rezoning, development permit and building permit fees are combined. The survey suggests that Maple Ridge fees are 22% below the average. In fact, Maple Ridge was recently recognized with an award from NAIOP for its low development fees. The Town Centre Investment Incentive Program was introduced in 2011. It was anticipated based on the economic times that 6 to 10 applications would be deemed a success. The actual number of permits reviewed and approved was 80. The impact on levels of service took time to manifest, however after about 18 months of the program it became clear that the sheer volume of applications and the commitment to priority processing was having an impact on levels of service. At the same time that the Town Centre Investment Incentive Program was in full bloom, the Real Estate Investors’ Network (REIN) published its findings that concluded that Maple Ridge is the No. 5 top investment city in all of Canada and second only to Surrey in British Columbia. As a result development interest in Maple Ridge increased dramatically further stressing the City’s resources. Due to the interest in Maple Ridge the number of predevelopment inquires over the past few years has been unprecedented. These types of inquiries consume huge amounts of staff time and yet require no fees. In response to the increased development, the City adjusted a number of processes and undertook an organization wide Customer Service Initiative. All of these efficiency and effectiveness measures continue to have a positive impact. 1 4.3 In the spring of 2014 Council asked that a report be provided on the needs of the development staffing area in light of the fact that development interest in Maple Ridge is predicted to remain very strong. The work matrix adopted by Council included a report on Development Services Resources. The timing of the report was to follow Council’s decisions on a number of work items with potentially significant impacts on staffing resources in the development processing area. These include the Commercial Industrial Plan, the Employment Incentive Program, the Albion Flats Area Plan and to a lesser extent the Transportation Plan. The processing of development applications is primarily carried out through the Planning, Engineering and Building Departments. Many of the staff involved in the processing of applications also carry out work with no associated application fee. As such, staff in these departments is funded through a number of funding sources including Development Application fees, Building Permit fees, General Taxation, Water Utility Funds and Sewer Utility Funds. This report is focused on examining how the level of service expected by the development community can be met. Based on the Council direction to keep tax increases low and the costs to the development community low the report proposes a financing methodology that will in the short term (two years) have no requirement for adjustments to the approved tax levels and no increases to the current application fee structure. This is achieved through a proposed combination of permanent and interim funding. This model is not sustainable beyond two years. A permanent solution beyond two years will have implications to taxes and/or development application fees. RECOMMENDATIONS: That staff be directed to implement the addition of 4 new positions in Development Processing as detailed in the staff report dated October 20, 2014; and further That the funding source for the four positions be as outlined in Table 3 of the staff report dated October 20, 2014. DISCUSSION: a) Background Context: As part of the approved Council Matrix, Council has requested a report on the resources required to meet the expected levels of service to the building and development community. Since the mid 1990’s the City of Maple Ridge has been consistently recognized as a leader in Business Planning. These award winning Business and Financial Plans have consistently strived to balance needs against cost containment. Most recently through tougher economic times Council has strived to reduce tax increases while at the same time maintaining levels of service. It is within this context that incremental packages including requests for additional staff resources have been kept to a minimum. During this time the City has pursued an “Open for Business” perspective that stresses the necessity of keeping the costs of development low as well as providing incentives to attract development such as reduced fees and priority processing. In a recent NAIOP survey the City was recognized for its low development fee costs. 2 Town Centre Investment Incentive Program The Town Centre Investment Incentive Program was introduced in 2011. It was anticipated based on the economic times that 6 to 10 applications would be deemed a success. The actual number of permits reviewed and approved was 80. The impact on levels of service took time to manifest, however after about 18 months of the program it became clear that the sheer volume of applications and the commitment to priority processing was having an impact on levels of service. Real Estate Investors Network (REIN) REIN has consistently cited Maple Ridge as a top 5 investment location in Canada and second only to Surrey in British Columbia. The openings of the Golden Ears Bridge and the new Pitt River Bridge have provided unprecedented access to this part of the region. It is suggested that interest in development in Maple Ridge is at the highest it has been in decades. While this interest has translated into multiple applications, it has also significantly increased the number of pre-application inquiries, general inquiries and meetings. Not all of these pre-application inquiries translate into applications however the staff time involved in responding to potential applicant requests is significant. Nearly all of this work is not recoverable from application fees. The amount of staff time involved in this development related work with no associated fees cannot be overstated. NAIOP NAIOP is one of North America's largest real estate organizations. Each year NAIOP surveys local municipalities for development application fees and process timing. While primarily focused on commercial and industrial developments the findings are also indicative of the residential process. The 2013 NAIOP survey shows that Maple Ridge has the some of lowest fees when the subdivision, rezoning, development permit and building permit fees are combined. The survey suggests that Maple Ridge fees are 22% below the average. Recently Maple Ridge was recognized with an award from NAIOP for its low development application fees. The NAIOP surveys are discussed in more detail later in this report. Efficiency and Effectiveness The City’s Business Plan Process requires all avenues to be explored before additional resources are considered. As an ongoing process, efficiency and effectiveness measures are examined. To that end there have been process reviews, customer service initiatives, overtime approvals and temporary staff hired to try and defer the need for hiring permanent staff. Process improvements initiated include: • Detailed Comprehensive Application Check Lists • Getting the Applicant to First Reading Faster • Planner of the Day (Planner assigned each day to address front counter inquiries) • Internal Application Review Committee (all staff involved in an application) • Detailed Pre-application Meetings • Elimination of Secondary Suite Permit Referrals to Planning Department • Elimination of Referrals to Operation Department 3 • Reduced Number of Plan Check Iterations • Master Plan Reviews for Building Permits • Pre-application Reviews on Building Permits While these have added value and improvements to the process the file load per staff member has not diminished. The reality is that no amount of process reviews can address a situation where the sheer volume of applications and inquiries exceeds the capacity to attain a desired level of service. Complexity of Developments Almost all projects are multi faceted. There are very few “easy” sites left to develop in Maple Ridge. More and more today’s applications have a significant level of complexity spanning geotechnical, environmental, transportation, legal document reviews, bylaw formulation and unique servicing concepts that require a level of assessment not often seen in the past. Infill projects which are readily serviceable are particularly challenging as they tend to generate neighbourhood concerns and require considerable time. Dormant Files Many assigned files remain open, however are dormant due to inactivity of the applicant. When the files becomes active again the applicants often expect staff to pick up immediately on where the file was left off as if no delay on the applicant's part occurred. Such projects can impact active applications significantly. As well some applicants will cite the original application date when referring to the length of time the file took to process, omitting the dormant time due to inactivity on the part of the applicant. Development Process As stated above, before an application even gets submitted staff spend a significant amount of time on general inquires and pre-application meetings. This time is not recovered through fees. The time spent on these inquiries, while necessary, takes staff away from spending time on processing applications that have paid fees. Development related applications may include: • Official Community Plan Amendments • Rezoning • Development Permits • Development Variance Permits • Subdivisions • Commercial and Industrial Temporary Use Permits • Building Permits • Plumbing Permits • Electrical Permits • Retaining Wall Permits • Fill Permits • Highways Use Permits • Water Service Connections • Sewer Service Connections • Design Panel Reviews 4 • Public Hearings This work is largely carried out by the development section of Planning Department, the subdivision section of the Engineering Department and the plan checking section of the Building Department. Work Load The Planning Department has provided 450 development related reports to Council over the past 3 years. This is on average about 90 reports per staff person over that period of time. The number of files currently being processed in the Planning Department is 256. This amounts to an average of 51 files per development staff person in the Planning Department. The Building Department has issued 3,885 building related permits in the past 5 years. This translates to an average of 777 per year or 15 permits per week every week for 5 years. As part of the development process review initiated in 2010, predevelopment application meetings are standard procedure. In addition, the Planning Department allocates a staff member to the front counter each day to respond to front counter inquires. Planning staff have been tracking their time over the past year. On average each Planning Technician is occupied at the front counter 57 days per year. This corresponds to over a day per week that each Planning Technician is not available to process applications. In actuality many of the inquiries received at the front counter require additional work and a day per week is conservative. The Planner of the Day was introduced in response to the need for more effective front counter service. Similarly, Plan Checkers and Engineering Technologists are on call to respond to front counter inquiries. These front counter inquires most often have no application fees associated with the service and result on average to 2 to 3 person days per week. Each department’s development related section has working managers. For example the Manager of Development is also the Approving Officer and works directly on assessing applications. The Manager of Inspection Services reviews more complex building applications and also undertakes inspections when understaffed due to illness or vacation. There are no contingencies built into the system. What this means is that if a staff person takes vacation or is sick there is no backfill. The use of overtime is also a “catch 22” situation. The additional work will, over time, take its toll on the staff person. In addition the time banked for overtime, when taken, means that person is now away. The current development staff contingent is as follows: Planning • 1 Planner • 4 Planning Technicians Engineering • 2 Engineering Subdivision Technologists Building Department • 4 Plan Checkers 5 Municipal Comparisons Comparisons with other municipalities while helpful are also challenging. Those challenges include ensuring that the data provided is thorough and that the comparison is “apples to apples”. No two municipalities are set up exactly the same. One of the first comparisons is a determination of how busy a municipality actually is. A growing municipality with lots of developable land will be busier than a municipality that is closer to build-out for example, and/or has little available land to develop. There are a number of determinants of how busy a municipality is. One determinant is population growth. Chart 1 below shows the Metro Municipalities projected population percentage increases to 2041. In looking at this chart Maple Ridge’s reality is most similar to the Township of Langley, Coquitlam and Surrey. Comparisons with these municipalities makes sense. While staffing levels comparisons are worthwhile the sheer volume of active files is probably most indicative of how busy a municipality is. For example it makes little sense to compare Maple Ridge with Pitt Meadows. In total Pitt Meadows has 27 active files compared to 256 in Maple Ridge. Chart 1 – Projected Population Growth 6 The following Table 1 provides a comparison for development processing staff based on information received from the Cities of Surrey, Coquitlam and the Township of Langley. Table 1 – Number of Development Staff and Files by Municipality Department Surrey Coquitlam Township Of Langley Maple Ridge Planning Development Staff 19 8 7 5 Engineering Subdivision Staff 7 10* 4 2 Building Plan Checkers 15 11 6** 4 No. of Active Planning Files 639 180 73 256 Files per Planning Staff 34 23 11 51 *some technologists also have other duties. **some plan checkers also do building inspections. Table 1 shows that Maple Ridge are below the staffing levels of the three other high growth municipalities. It also shows that the file load per staff is higher in Maple Ridge than the other three. Interestingly the Township of Langley in the most recent NAIOP survey showed the least processing time of the four municipalities which is perhaps indicative of their lower file per staff ratio. It should be noted that the Building Department has been operating with 3 Plan Checkers for most of 2014. This is a result of an illness. To try and address this, a temporary position was posted (twice) through the course of the year. There were no successful applicants for this temporary posting. It is anticipated that this position will be posted on a permanent basis in the coming months. LEVEL OF SERVICE RESOURCE REQUIREMENTS – Performance Measures It is acknowledged that “time is money” to the development community. In an ideal world the development process would have municipalities staffed to provide almost instantaneous responses. Due to funding constraints most municipalities are not staffed to drop files they are working on to provide instantaneous responses to every applicant as well as the general public. Instead, municipalities strive to set a level of service based on the quantity of applications and the available resources; the available resources being dependent on the corresponding available funding. Levels of service are of course dependent on the efficiency and effectiveness of the process, the level of staff experience and how that process is resourced. The efficiency measures implemented by Maple Ridge have been discussed above. The annual NAIOP survey requests that each municipality provide its timing in relation to the processing of rezoning, subdivision and building permit applications. Table 2 shows the survey information requested annually by NAIOP. 7 Table 2 – NAIOP Timing Survey Process Timing Rezoning Less than 30 days 30 to 90 days 90 to 120 days 120 to 150 days 150 to 180 days Over 180 days Subdivision Less than 30 days 30 to 90 days 90 to 120 days 120 to 150 days 150 to 180 days Over 180 days Building permit Less than 30 days 30 to 90 days 90 to 120 days 120 to 150 days 150 to 180 days Over 180 days In completing this survey Maple Ridge staff believes that it is our duty and obligation to complete the survey based on reality. Some municipalities have previously reported completing the rezoning process in less than 30 days. This appears to be legislatively impossible unless the municipality forgoes the Public Hearing process review, combines Bylaw readings, and does so on every application. Based on our actual experience with files, the number of files and the resources available our response over the past few surveys has been relatively consistent. Rezoning 90 to 150 days Subdivision 90 to 120 days Building Permit 30 to 90 days Depending on the application these processes can run concurrently. There are of course applications that fall on either side of these ranges. For example, many building permits are issued in less than 30 days. There are rezoning applications that take longer than 150 days. It’s important to note that the process timing is also heavily reliant on the applicant. For example the length of time an applicant takes to fulfill the conditions for final reading will impact the completion time. To provide a consistent level of service that will allow Maple Ridge to consistently fall in the lower ranges of these surveys, the addition of the following staff positions to the development review process is recommended: • 2 Planners • 1 Planning Technician • 1 Plan Checker • 1 Subdivision Technologist (Engineering) Every year at Business Planning Council is informed that when positions become vacant due to retirement or resignations those positions are assessed for optimum utilization. There have been a number of retirements in the Engineering Department as well as the unfortunate passing of one of the staff. As a result, the Subdivision Technologist (Engineering) position is already accounted for in the approved budget, as this is an existing position that is being re-classed following an assessment of vacant positions due to retirements. Therefore of the positions above only 4 are additional. 8 Employment Lands Investment Incentive Program Council recently adopted in principle a new incentive program to attract employment, and an extension to an existing incentive program. Part of the discussion included the issue of priority or expedited processing. The Town Centre Investment Incentive Program was an outstanding success. It has been cited across the Region as one of the best incentive programs ever implemented. While priority processing was well received by applicants participating in the Town Centre Investment Incentive Program, concerns were raised by applicants outside of the Town Centre. Those concerns were primarily centered on a consistent level of service being provided to all applicants. One of the issues raised was the fact that those applicants taking advantage of the incentive program were having their application fees reduced while at the same time receiving priority processing. Those applicants outside of the Town Centre had no fee reduction and yet were being placed behind Town Centre applicants in the processing queue. The anticipated uptake on the Employment Lands Investment Incentive Program is not anticipated to be as dramatic as the Town Centre Program because it is non-residential in nature. However its uptake will be unknown until implemented. In the absence of additional resources, there will be impacts on the timing for non-priority files. Should Council wish to implement priority processing or an expedited process for both programs, it could be achieved under the recommended staffing levels above without significantly impacting applications outside of the program. However the hiring of staff is not an immediate process and experience has shown that it can take months to fill positions with appropriately qualified and experienced staff. It is therefore advised that additional staffing levels be in place or in the process of being in place prior to priority processing or an expedited process being implemented. It has been suggested that applicants would pay more to have their applications processed faster or to jump the queue. This is counter-intuitive to the incentive program which seeks to reduce fees. In addition it sets up a two tiered system with an inconsistent level of service being provided to different applicants, and would likely result in the development community applications being processed faster than those made by an individual property owner. Also, in speaking to experienced developers they have said that most developers would likely end up paying the additional fees which would result in no benefit. If the development community is willing to pay more as stated then a review of the application fees across the board is more appropriate. This is discussed later in this report. In contrast to a two-tiered system which allows the development community to set priorities, expedited or priority processing allows Council to set the pace, fast-tracking projects that most closely align with Council’s goals and objectives. Position Qualifications Requirements The staffing qualifications are necessarily significant. These qualifications are set through job description analysis by Metro Vancouver. It is a requirement of the Collective Bargaining Agreement with CUPE that job classifications are set via this third party. Changes to job qualifications can not be made without CUPE’s agreement. Developments often result in 9 investments of millions of dollars by applicants. Applicants need to be assured that their applications are being assessed and reviewed by appropriately qualified people. The City is also open to liability for wrongly assessed applications. The education and experience requirements for the various positions within the development process include: Planner - Master's Degree in Planning with some professional experience in urban or regional planning. Considerable academic and practical knowledge of principles, practices, and objectives of urban and regional planning. Membership or eligibility for membership in the Canadian Institute of Planners. Planning Technician - A University Degree in a planning related discipline such as Environmental Studies or Urban Geography. Fundamental knowledge of planning practices, plus related office experience. Plan Checker - Graduation with a Diploma from an Institute of Technology in Building Technology, plus sound related experience in the building construction industry or Municipal field, preferably Level II Certification of the Building Officials Association of BC. Subdivision Technologist - Graduate with a Diploma from an Institute of Technology in Civil Engineering Technology and eligible for certification as an Applied Science Technologist in the Province of British Columbia plus related experience in a municipal engineering office or equivalent. There have been cases where a staff member has moved from one department to another. In these cases they have had the necessary qualifications. In most cases the qualifications are not transferable. For example a qualified accountant would not be qualified to move to a planning position or vice versa. The City has used and continues to use students where appropriate for short term periods. By the very nature of their circumstances students need to get back to their studies. The City does not maintain a unilateral right to deploy students as in the majority of cases, the work being performed by students is typically bargaining unit work (i.e. work that is performed by CUPE employees). Students can be used for research and finite projects however are not at all suitable for application processing. Applicants for developments have always informed the City that they prefer to have one file manager throughout the application process. The short term nature of student deployment does not provide this consistency. Most often their level of experience is limited, minimizing their utilization for tasks required to be performed. Moreover, students require greater guidance and supervision which results in a greater resource draw on existing supervisory/management personnel. Transferring or secondment of staff on an assignment basis from municipality to municipality is not an accepted practice within the sector. Various collective agreements with different provisions on items such as seniority accumulation, leave provisions, and different pay and benefit structures would pose significant hurdles that must be overcome before this can be considered a feasible option. Even if this could be achieved, the receiving municipality would be responsible for the employee’s salary and benefit costs. 10 The creation of a position does not mean that it will be filled immediately. Until recently the Engineering Department had extreme difficulties in trying to fill vacant positions. In addition the Planning Department over the years has been subject to significant turnover as more attractive higher paying positions in other municipalities became available. Temporary positions are the most difficult to fill. Whereas in the past retirees were attracted to returning to the workforce on a contract basis that is no longer the case. As stated earlier the Building Department posted a Temporary Plan Checker position twice this year with no success. b) Financial Implications Based on Council’s direction to keep taxes low and application fees low the approved budgets do not have the capacity to achieve the recommended staffing levels. Should Council wish to move forward with the recommended staffing levels then a budget amendment would be required. An interim temporary short term solution could be implemented graduating into a permanent solution. A permanent stable solution will ultimately require a combination of general revenue funding, utility revenue funding and application fee adjustments. The recommendation for the short term is to utilize funding from reserves combined with funding already approved in the current budget. The following Table 3 provides a funding strategy that would see the staffing levels accommodated in the short term through funding already approved supplemented by temporary funding from reserves, Beyond the first two years the strategy recognizes that permanent funding from general revenue, utility revenue and applicant fees will be required. Table 3 – Financial Implementation Strategy Financial Implementation Strategy *all dollar figures in thousands Funding Previously Approved 2015 2016 2017 2018 2019 Re-classed Existing Positions $108 $110 $112 $114 $118 Existing Growth Funding 93 93 93 93 93 Total 201 203 205 207 211 Additional Funding Required Reserves $198 $198 $0 $0 $0 Application Fees 0 0 100 100 100 General Revenue 0 0 114 122 124 Water Utility 0 0 25 26 27 Sewer Utility 0 0 25 26 28 Total 198 198 264 274 279 11 The Financial Implementation Strategy accommodates the 4 additional positions over a two year period with a Planner, a Planning Technician and a Plan Checker in the first year and an additional planner in the second year. Funding Previously Approved As stated above the position in the Engineering Department is a re-classed position the funding for which is already approved. In addition each year the approved budget also provides a small funding amount to accommodate addressed growth. The proposed strategy utilizes this approved funding. Temporary Funding from Reserves Council has had numerous presentations on the status of the City’s reserve accounts. One of those accounts, the Building Inspection Reserve, includes reserves to be used to offset shortfalls in permit revenue. It is proposed that these reserves be used over a two year period to assist in temporarily funding the recommended staff. Application Fees The 2013 NAIOP survey shows that Maple Ridge has the some of lowest fees when the subdivision, rezoning, development permit and building permit fees are combined. The 2013 survey suggests that Maple Ridge fees are close to 22% below the average. The following Table 4 shows how much would have been collected on an annual basis over the past 6 years using a range of percentage increases. Table 4 – Development Application Fee Revenues Rate Increase Additional Annual Revenue 5% $102,300 7.5% $153,500 10% $204,700 12.5% $255,800 15% $307,000 22% $450,000 In keeping with the previous direction of Council no application fee increase is proposed in the first two years. However it is suggested that a review of the application fee structure be undertaken given the service being expected by the development community. It is reasonable that in providing additional staff to the development process that the beneficiaries of the additional staff be required to contribute. 12 c) Alternatives: There are a multitude of combinations of general revenue, utility revenue and application fees that could be explored. Deciding on the most appropriate combination could be completed through the next Business Planning cycles. Council could also decide not to proceed with additional staff at this time. CONCLUSIONS: In the spring of 2014 Council asked that a report be provided on the needs of the development staffing area in light of the fact that development interest in Maple Ridge is predicted to remain very strong. The work Matrix adopted by Council included a report on Development Services Resources. The timing of the report was to follow Council’s decisions on a number of work items with potentially significant impacts on staffing resources in the development processing area. This report examines how the level of service expected from the development community can be met. Recognizing the direction to keep tax increases low and the costs to the development community low the report proposes a financing methodology that will in the short term (two years) have no requirement for adjustments to the approved tax levels and no increases to the current application fee structure. However this strategy recognizes that beyond two years a permanent solution is required consisting of a combination of general revenue, utility revenue and additional application fees. Staff therefore recommends the addition of 4 new positions in Development Processing as detailed in this report, with the funding source for these 4 positions as noted in Table 3 of this Report. “Original signed by Frank Quinn”_____________________ Prepared by: Frank Quinn, MBA, P.Eng General Manager, Public Works & Development Services “Original signed by Paul Gill”_________________________ Approved by: Paul Gill General Manager, Corporate & Financial Services “Original signed by J.L. (Jim) Rule”_____________________ Concurrence: J.L. (Jim) Rule Chief Administrative Officer 13 1 City of Maple Ridge TO: His Worship Mayor Ernie Daykin MEETING DATE: October 20, 2014 and Members of Council FILE NO: FROM: Chief Administrative Officer MEETING: Workshop SUBJECT: Silver Valley Area Plan Update 2014 EXECUTIVE SUMMARY: Silver Valley is one of three areas in the District that have an individual area plan adopted into the Official Community Plan: the other two are Albion and the Town Centre. Silver Valley’s unique context and “land informs development” approach has enabled a high quality residential development that protects natural features, retains the natural beauty of the area, and offers attractive outdoor recreational opportunities. Since its adoption in 2002, development in Silver Valley has been reviewed in light of these Area Plan policies. The “land informs development” approach has resulted in ground truthing at the time of development which often required adjustments to the Plan. These minor changes, combined with public input about schools and local transportation have prompted Council to request more information. At the April 22, 2014 Council meeting, the following resolution was passed That staff prepare a report on the progress towards implementation of the Silver Valley Area Plan including an update of density, population and capacity. This report provides an overview of the Silver Valley Area as it has progressed since initial adoption of the Area Plan in 2002. More than one decade since adoption, this review of the Area Plan as it becomes physical reality offers significant insights into this newly created and evolving community. There are also lessons to be learned about the “fit” between initial goals and the incremental steps to their becoming realized. An analysis of this process and its outcomes reveals the influence of circumstances, market forces, and senior agency involvement. More generally, there are implications for growth management, area planning processes, and land development. An update was provided to Council in December 2010 that summarized the initial goals as set out in the Silver Valley Area Plan, its emphasis on green space, and protection of the natural environment. The 2010 report also outlined development details as they pertained to the implementation of the Plan. This report augments this earlier information with a broader overview and policy perspective. Census information will provide resident information, and reveal demographic trends and their impacts on the pacing of development. An evaluation of the City’s progress in the Plan’s implementation including the role of Translink and the School District will be provided. 4.4 2 Upon this evaluation, the report finds that the Silver Valley Area Plan is still in its early stages, but is meeting the overall objectives as set out in the Plan. RECOMMENDATION: That the report entitled “Silver Valley Update 2014 dated October 20, 2014 be received as information. BACKGROUND: Silver Valley has been considered for urban development for several years prior to its inclusion in the Urban Area Boundary in Maple Ridge. A brief chronology of this process is as follows:  1981- Silver Valley was designated “Urban Reserve” in the Official Community Plan  1988- Urban Growth Study was provided by UMA consultants.  1991- The Official Community Plan was amended to designate Silver Valley as Urban.  1992- Environmental Consultants Gartner Lee provided an Environmental Assessment of the area.  1994- A Silver Valley Land Use Review was conducted by Arlington Consulting Group and Quadra Planning.  1996 – The Silver Valley Land Use Review was adopted in the Official Community Plan  1997- The first Zoning Bylaw amendment for the area occurred.  1999- Guide Plan for the Area was approved.  2001- Silver Valley Area Planning Study conducted by Civitas Consulting  2002– Adoption of the Silver Valley Area Plan. The Silver Valley Area Plan spans several years of background research with a lengthy public participation phase. There were two consultant reports compiled in support of the Area Plannin g Process. As noted above, the first of these, the Silver Valley Land Use Review, dated 1994, was created by the Arlington Consulting Group in collaboration with Quadra Planning. This document focused on broad policy objectives and demographic forecasts at that time. The second report, titled Silver Valley Area Planning Study, dated 2001 was prepared by Civitas Consulting. Planning principles from this latter report were adopted by Council in 2001. It was the background report for the creation of the Silver Valley Area Plan, which was adopted in 2002. Study Area: In 1994, prior to the area planning process, Silver Valley was a rural residential and large lot suburban community of about 600 residents. The most recent 2011 Census indicates that the area is now home to 4670 residents. The study area, not including the transportation network, is estimated to be 581 hectares, of which 246 are designated for Conservation or Open Space. Silver Valley Area Plan Principles: The Silver Valley Area Plan provides a development model that is sensitive to the terrain/ topography; biodiversity; proximity to watercourses, the Malcolm Knapp Forest Reserve, Golden Ears Park, and viewscapes. These features were to be considered community assets in determining developable area. From its initial Guiding Principles, the Plan was driven by a broad conceptual approach that necessitated innovation and flexibility in its implementation. 3 These Guiding Principles are as follows: 1. Environment First; 2. Sustainable Approaches; 3. Integrated Community; 4. Adaptability; and 5. Healthy Community. The Guiding Principles provide a broad concept that is reflected in the Development Principles in their focus on the physical, social and economic context. The Development Principles include the following: 1. Planning & Urban Design; 2. Environment, Open Space & Recreation; 3. Infrastructure and 4. Economics. It should be noted that Zoning Bylaw amendments made prior to the adoption of the Silver Valley Area Plan (from 1997 to 2000), affected 96 hectares, of mostly developable land. These pre -zoned lands were a significant portion of the developable land base and compromised the full implementation potential of the Plan. These lands included early phases in Portrait Homes development and Rock Ridge developments. There remains significant tracts of these pre -zoned lands that have yet to develop. The following is a summary of how the four development principles were to guide development: 1. Planning & Urban Design The physical expression of these principals was to be realized in diverse housing forms of various densities distributed within the Hamlets and areas outside the Hamlets, River Village and Eco - Clusters. Each hamlet featured a central area with amenities that could include a park, school, local commercial space, civic uses and higher density residential uses. A single hamlet was comprised of multiple residential neighbourhoods developed in a manner to foster incremental density increases nearest to the hamlet centre. Residential forms differ based on their designation within the Plan, such as High, Medium, Low density residential or a combination. For example, the land use designations in Blaney Hamlet indicate 3 neighbourhoods of single family and limited town house forms to a total of 460 units. The hamlet is surrounded by lower density eco-clusters. The Horse Hamlet is anticipated to accommodate 240 residential units in two tightly compact neighbourhoods surrounded by eco clusters. The Forest Hamlet, also surrounded by eco-clusters, contains within its core 3 neighbourhoods of single family and townhouse residential forms. River Village, located on Fern Crescent between Maple Ridge Park to the south and an escarpment to the north & east, was identified as the commercial heart of the Silver Valley Area. This centre was anticipated to serve local needs for retail, service, office and civic uses. The proposed design integrates a main shopping street with multi-family housing, a school, community and mixed use buildings. Flexibility in permitted uses and mixed use provisions were incorporated to allow River Village to develop and evolve over time. 4 Local commercial uses were encouraged within the Hamlet Centers within a 400 to 500 metre radius with the intention of providing for limited food and service needs while reducing reliance on the private automobile. Commercial buildings were expected to also accommodate residential uses either on the upper floors or as interim uses, in a variety of forms except in the River Village commercial designation. The maximum commercial space within each hamlet was based on the projected number of residential units it would eventually contain. For example, the commercial floor space in the Horse, Blaney & Forest Hamlets is limited to 90 m2 to 140 m2 (these uses were anticipated to be on the size and scale that were eventually built on 102 Avenue in Albion). In support of residential diversity, there were 6 residential designations in the Area Plan. These are as follows: 1. High Density Residential (village only), with proposed densities up to 70 units per net hectare. (multi-family zones only) 2. Medium high density (village only), with proposed densities from between 30 and 50 units per net hectare. (small lot single family and townhouse zones only) 3. Medium high density (hamlets only) with proposed densities of between 18 to 40 units per net hectare (a range of single family zones permitted, along with townhouse) 4. Medium density, with proposed densities from between 15 to 30 units per net hectare, (a range of single family and duplex zones permitted) 5. Low / medium density, with proposed densities from between 12 to 18 units per net hectare 6. Low density, with proposed densities from between 8 to 15 units per net hectare (larger lot single family residential zones permitted) 7. Ecocluster , with proposed densities from between 5 and 15 units per net hectare (all single family zones permitted along with duplex and townhouse) The wide variety of zones permitted in these designations reflects the goal of fitting the housing form to the physical characteristics of each site. By providing flexibility in housing form, multiple objectives would be achieved, including reaching the overall density of the site as outlined in the designation while protecting environmentally sensitive lands from development. A map showing designations is attached as Appendix A. 2. Environment, Open Space & Recreation. Consistent with the Plan’s ‘Environment First” Guiding Principle, development within Silver Valley seeks to be sensitive to factors such as: flooding, fish habitats, view retention, rock outcropping, run - off; tree protection; slope stability, and continuous wildlife corridors. The development of a network of trails and open space was integral to the Plan. Properties designated “Open Space” in the Silver Valley Area Plan represent areas that are intended to be left in their natural state. The open space designation was established to maximize tr ee retention; protect view-scapes; protect edge conditions on environmentally sensitive lands; and provide linkages and connections to amenities and community features. The extent of the open space would be determined upon completion of the physical inventory of a site (i.e. groundtruthing). The question of public or private ownership of these lands would be determined on a case by case basis, as an outcome of dialogue between prospective developers, Maple Ridge staff, and Council approval. 5 The Plan anticipated up to 21 public parks in the Silver Valley Area, mostly as “mini neighbourhood” sites ranging in size from 0.5 to 1.5 acres. The park standard for Silver Valley is a 2 to 5 minute walk from a hamlet residence to a mini neighbourhood park and a 5 to 10 minute walk from most dwellings for a Park/ School site. It is anticipated that each mini park site would have children’s play ground elements typical of neighbourhood parks. 3. Infrastructure: The Area Plan is based on the distribution of development over four neighbourhoods that are non - contiguous due to the existing physical terrain. In general the area rises away from the floodplain of the Alouette River along the south and west boundary. While the grade rises generally to the north, topological features due to the underlying bedrock, the North Alouette River, and Millionaire Creek create significant irregularities in the terrain. In order to be consistent with the Plan’s guiding principles, the placement of infrastructure has been focused on minimizing changes to topography and discouraging the excessive use of retaining walls and blasting. Where possible, road cross sections have been based on existing grades to reduce steeper streets and minimize cutting into the terrain. 4. Economics The Plan emphasized capitalizing on economic opportunities in the area by concentrating compact residential development in hamlets that would foster commercial development, with the main commercial centre in one village. Commercial buildings would be mixed use, integrating retail, office use, and residential. Home based businesses would be encouraged, and the area’s equestrian and recreational assets were recognized for their economic opportunities. It was recognized that commercial development was population driven and that it would not occur until the later stages of the Plan DEMOGRAPHICS Demographic Assumptions: The decision to embark on an area planning process was largely driven by the recognition of the need to manage growth and accommodate a growing population. The 1996 Official Community Plan forecasted that a Maple Ridge population of 122,900 was possible by the year 2021. The 1994 Silver Valley Land Use Review noted an annual growth rate of 5.5% in Maple Ridge since 1986, While this rate was expected to slow down, the expectation was a population doubling and a population threshold of about 100,000 by 2020. In 2004, Maple Ridge commissioned more background demographic research in support of the Official Community Plan review. This document, titled Demographic Analysis and Population and Housing Projection for Maple Ridge, 2001 – 2031, noted a range of population forecasts and growth rates from different sources. The highest growth rate forecasted was 3.21%, while the lowest growth rate from between 2001 to 2021 was 1.86%. This low rate was provided by BC Stats, and was at the time considered to be conservative but defensible. A range of forecasts was noted for 2021, from 95,700 to 122,900. Only one forecast for 2031 was included, from BC Stats, at 108,900, Reality Check: When the Plan was developed, higher growth rates were being projected than are actually occurring. As noted, the range of population projections for Maple Ridge is from 1.67 % to 3% for the years of 2001 to 2011. These projections were developed by credible sources who used defensible criteria in their assessments. A further comment in the document, titled Demographic Analysis and Population and Housing Projection for Maple Ridge, 2001 – 2031 was the observation that average household size was declining significantly from its 2001 levels of 2.76, and this 6 demographic shift would have growth management implications, as soon the rate of demand for new housing units would outpace the rate of population growth. This background paper predicted that lands within the existing urban area boundary would reach development capacity shortly after 2021. Between the years of 2001 to 2011, actual population growth has been more modest, and average household size has had only marginal declines since 2001. Growth rates from 2001 to 2011 are volatile, as shown in Figure 1, below. However, they average out at 1.6% average compound annual growth for Maple Ridge and 1.3 % for Metro Vancouver over this time frame. BC Stats has provided more recent population estimates for 2012 and 2013, and these indicate growth of 1% and 0.5% respectively, suggesting a recent trend of declining growth. Census information reveals average household size for 2011 in Maple Ridge of 2.68 people per household, and 3.28 people per household in Silver Valley. The combination of a lower rate of population growth and greater household size have the effect of reducing development pressures, giving Maple Ridge more time to pace incremental growth. Figure 1 Population Growth Rates in Maple Ridge and Metro Vancouver. Average annual compound growth is 1.6% for Maple Ridge and 1.3% for Metro Vancouver Silver Valley Resident Information By their very nature, area plans that increase density significantly will introduce new residents who were likely not participants in the creation of the original plan. New residents may have different values than those who were originally engaged in the Plan’s development. To give a sense of who these recent residents are, this section compares r esident characteristics between Silver Valley and Maple Ridge using the 2011 Census as shown in the following tables. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 MetroVancouver Maple Ridge 7 Income. Silver Valley households are typically higher income earners than the rest of Maple Ridge. This could be in part explained by the demographic composition of the area, of residents in their prime earning years, more double income households, and fewer single occupant households. Household Characteristics. Silver Valley Households are typically occupied by more people than the rest of Maple Ridge. The persons per household size indicated in the Census is 2.68 in Maple Ridge, and 3.28 in Silver Valley. 0% 10% 20% 30% 40% 50% 60% 70% 80% Under $40,000 $40,000 - $79,999 $80,000 or more Maple Ridge Silver Valley 0% 10% 20% 30% 40% 50% 60% 70% Maple Ridge Silver Valley 8 Age. The differences revealed in age structure between Silver Valley and the rest of Maple Ridge are consistent with predominantly family households, with children under the age of 12, and the bulk of the population in the 35 to 54 age group. This demographic composition is consistent with the 1994 Silver Valley Land Use Review, which recognized the area’s attractiveness to families, and supported housing forms that would be appropriate for family households . Residential Structure Type. The 2011 Census revealed the predominant detached Single Family housing type in Silver Valley Housing stock. More recent years have seen a shift in this trend towards more multi-family developments, Municipal records to date indicate a total of 1582 single family residences in Maple Ridge, and 175 row house units. DEVELOPMENT ACTIVITY Development potential: The success of the Silver Valley Area Plan can be evaluated by its ability to meet its original development goals. Table 1 below provides a breakdown of existing development, in process applications, and the capacity of the remaining land, based on its designation. This information indicates that all of these development areas have sufficient capacity to meet or exceed the dwelling unit count as established in the Area Plan. 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 to 4 5 to 12 13 to 17 18 to 24 25 to 34 35 to 54 55 to 64 65 years and over Maple Ridge Silver Valley 9 Table 1. Existing & Potential Development in Silver Valley Area Plan/OCP Targets Existing In Process Capacity based on OCP Designation of remaining land base Can targets be met? Single Family Multi Family Single Family Multi Family Blaney 460 233 175 43 74 75 yes Forest 500 23 0 0 0 500 yes Horse 240 47 0 54 0 191 yes River Village 400 154 0 0 33 265 yes Blaney Hamlet, which is approaching build-out, indicates that the original targets have been realistic. Lands outside of the hamlet radius are not included in the hamlet targets, but these areas have also undergone some development at the 5 minute walking distance radius. A map showing developed sites in the area is attached as Appendix A. This map notes a total of 591 hectares of site area, which does not include the road network. Of this area 82 hectares are developed and 246 hectares are designated as Open Space or Conservation. Approximately 246 hectares retain their development potential. MARKET ANALYSIS / HOUSING MARKET Real Estate Market Potential: Assessed value has been used as an indicator of relative market desirability in the Silver Valley area in comparison with the Albion Area. Municipal records of lot value only for 240 R-1 Urban Residential properties indicate an average value of $262,000 per lot compared with $232,000 average per lot value in Albion, based on a scan of 273 R-1 Zoned properties in Albion. A local appraiser asserts that the two areas are in reality very similar in price and absorption rate when there are comparable real estate products o n the market. However, green space and views would set a higher premium on lot value. The relative abundance of these amenities in Silver Valley may skew averages upward for Silver Valley lot prices. It should be noted that the protection of these amenities was factored into the area planning process, and points to the overall success of the Plan and its subsequent implementation. Market Uptake: As noted, a critical mass of residential development is needed in order to provide a sufficient consumer base to support commercial and other services. The 2010 Silver Valley Update noted that development in the Plan area was expected to increase by 150 to 200 units per year. The Civitas report noted that in its early stages, growth would be slower, but build out would be achieved within the 20 year horizon. The growth rate has been slower but is gradually increasing, as shown by Table 3, below 10 Table 3 Silver Valley Statistics Based on Occupancy Permits Year SF Units Created Duplex Units Created Townhouse Created 2002 28 2003 37 2004 37 2 2005 78 2006 155 2007 103 2008 107 2009 85 2010 109 30 2011 101 2 65 2012 71 114 2013 102 2014 (September) 39 *Total 1052 4 209 To a significant extent, the slower than anticipated pace of development in Silver Valley can be explained by the Regional population growth rates that have been lower than forecasted. The rate of development in Silver Valley, based on unit counts appears to be escalating, as predicted, suggesting maturation of the development phase. It may be too early to assess, but it is clear that growth is occurring, and the market potential of the area remains strong. Appendix B indicates the developed areas and the remaining development potential of the land base. This information suggests that roughly 80% or 260 hectares of the land base still retains its development potential. IMPLEMENTATION A few changes since adoption of the Silver Valley Area Plan have affected its implementation. In addition to the large tracts of pre-zoned properties, the most prominent factor has likely been population growth, which is lower than expected, as well as the larger household size. These two factors combined tend to reduce development pressure, and increase the capacity of the area to accommodate more residents than previously considered. A few other considerations are noted in this section, including the role of the School District. The progress of development as it has affected the original Development Principles are outlined as well. *Two methods for calculating unit counts have been used in this report, and therefore, some discrepancies may occur. For instance, a manual count of bare land strata units would be classified as Single Family as the housing form is single detached, but electronic records could indicate these as townhouse due to their strata tenure. Similarly, attached fee simple housing could be considered Single Family due to its tenure type, although its form is closer in appearance to Townhouse developments. The overall unit would be the same for both methods. 11  School District It was generally recognized that the School District would have an important role in in the anticipated family neighbourhood that Silver Valley would become. From the outset, the Silver Valley planning process was collaborative. School District 42 was consulted as the Silver Valley Land Use Review was being prepared. The content of this document indicates School District 42 was involved in the selection process for school sites on the Plan. The document also states that the School District indicated agreement in principle with the plan. With on-going dialogue from the School District, the Silver Valley Area Plan was adopted with a total of 4 school sites indicated, of which 3 were elementary, and 1 was secondary. During the review of the 2006 Official Community Plan, Staff met with School District Staff to discuss school sites identified in the Plan, including the Silver Valley sites. No changes were requested at that time. A formal referral was also sent to the School District and no comments were received. Despite their initial involvement, correspondence from the School District after the adoption of the Silver Valley Area Plan indicates the School District was reconsidering their earlier projections of 4 schools on the area site. Maple Ridge records indicate some time after the OCP referral, the School District was considering whether the proposed secondary site was n ecessary, and was contemplating pursuing just 3 elementary sites in Silver Valley. Since 2012, the School District has stated that they would be pursuing just one elementary school site. A report on the location of this site is in process. This recent decision of the School District is a concern, especially given the family structure of many Silver Valley households. It is also recognized that schools were from the outset considered to be part of the community centre within each neighbourhood. Civitas consultants were asked to provide feedback on this matter. Their response is as follows. “ there exist other ways to provide a 'civic heart' to each hamlet using a park or other open space, community facilities, and/or day care, to name a few, in place of the schools.” While it remains a priority for Maple Ridge to engage the School District in serving the community with schools, there are reasonable community alternatives for these sites. These will be realized as development occurs.  Wildfire Development Permit The Wildfire Development Permit Guidelines have received first and second reading and will be going to public hearing on October 21, 2014. Intended to be flexible with retention of existing development potential and lot yield, these guidelines will protect both human safety and habitable structures. 12  Silver Valley Principles Silver Valley Principle - Planning & Urban Design: Single family housing in a variety of forms is the predominant form to date, and most of the existing housing mix would be appropriate for families in multiple person households. More diverse housing forms have been introduced recently, including smaller single family dwellings, duplexes, and townhouses. The Street Townhouse Zone (RST-SV zone), was newly created for the Silver Valley area and has been approved with some units currently being constructed. The feedback from the development community is that they are selling well, as buyers seem to appreciate these units as compared to conventional strata units due to the fee simple tenure. Higher density apartments (in the River Village site) are yet to develop. Opportunities for incremental density increases were part of the original vision. Additional possibilities have been created or are in process since the adoption of the Silver Valley Area Plan. Detached garden suites offer property owners with larger lots to build a detached dwelling unit on their properties. In addition, Council recently directed that secondary suites be permitted in the R -1 Urban Residential Zone. This amendment will be reflected in the new Zoning Bylaw. Silver Valley Principle - Environment. Open Space & Recreation: The objective to protect conservation lands is being met through the designation and municipal acquisition of conservation lands as development proceeds. Approximately 53 hectares (130 acres) have been acquired for conservation purposes. Significant rock outcroppings and mature tree groves are being identified, and protected through convenant or park dedication. An equestrian/multi-purpose trail network is being developed through a collaborative process with applicants, municipal departments, and the Haney Horseman. The siting of trails and public access to parks can be challenging due to topography. Improved connectivity is being achieved through new roads and park dedication as the development process occurs. Due to the City’s significant holdings, land exchange to acquire “public park” lands in preferred locations is an option. The City has acquired eleven properties of various sizes that were designated for a neighbourhood park function in Silver Valley. There are five neighbourhood parks identified on existing municipal lands designated for future urban development. There are eight areas to acquire for neighbourhood park as designated to achieve the objectives in the Area Plan for Silver Valley. Of the sites acquired by the City, four have been developed (Cedar, Deer Fern, Red Alder, and Birch) with neighbourhood park amenities. Silver Valley Principle - Infrastructure: Transportation: The Area Plan outlines a road network plan, and this original layout has been generally followed. Some modifications have been made as development has occurred, for a number of reasons, one being the housing form constructed. Multi family strata devel opments are served by an on-site private road network, and therefore would not be considered as municipal infrastructure. The challenging topography in Silver Valley is another reason that may result in a variance in the layout of the overall road network. As development continues in Silver Valley the overall road network becomes more integrated, with improved connectivity to eliminate dead-end roadways – the current extension of Larch Avenue is an example of improving overall connectivity in that portion of Silver Valley. There can be challenges along portions of the existing road network but significant investments are being made in upgrading these corridors, such as 132 Avenue east of 232 Street. In October 2014, Cipe Developments agreed to build a portion of 128th Avenue to improve the road network in the Horse Hamlet. 13 Servicing: The Silver Valley Area Plan has presented challenges in efficient servicing of sewer and community water due to the area’s complex topography. Under ideal circumstances, a broader overview of a site would provide sufficient site details so as to design efficient gravity fed systems to serve incremental development. However, the complexity of the site was not conducive to ground truthing prior to development occurring, so a master plan approach to development servicing was not possible. Instead, site details emerged through ground truthing on an application by application basis. Water.The Silver Valley drinking water servicing plan has been developed through incremental planning guided by area-wide studies produced in 2003 and 2005. Further to capacity planning carried out in 2013/2014, a drinking water reservoir is under design for construction in 2015/2016. Additionally, a consultant has been retained to produce an updated area-wide plan by December 2014. Sanitary: Area-wide sanitary servicing has been reviewed as part of a Sanitary Master Plan scheduled for completion by the end of 2014. Upgrades required to major sanitary pump stations will be identified in the Master Plan. More detailed planning will be required once the sanitary master plan has been finalized. Stormwater: Rainwater has been managed in Silver Valley according to recognized best practices. An Integrated Stormwater Management Plan (ISMP) covering much of the Silver Valley Area is scheduled for 2014/2015. In conjunction with the ISMPs there have been a number of key strategies and action items established, including the establishment of the Watercourse Protection Bylaw in 2006 that acknowledges the treatment of water as a significant valuable resource, to enhance the natural environment as well as protect the built environment. The use of Best Management Practices (BMPs) to manage water is also important to reduce or avoid risks associated with flooding, drought, and/or contamination of water quality. Implementation of Low Impact Development BMPs also play an important role in guiding development in Silver Valley. Developments within Silver Valley that have utilized the new stormwater and rainwater management standards in Maple Ridge have received over 100 national, provincial, and regional awards in the past decade for sustainable design.  Economics: An objective in the Plan was the creation of vibrant neighbourhoods that supported a range of economic activities in the commercial area, in the office spaces, and in the home based businesses. This component of the Plan has been slower to develop, but from the outset it was predicted to follow. At this time, a full range of services is not available in the area. It should be noted that until there is sufficient residential development to support local business, commercial development will not likely occur. Transit services have also been slow to follow development in Silver Valley due to the lack of people to support buses. Similar to commercial development, bus service will follow when an appropriate numbers of riders are living in the area. The Civitas background study to the Area Plan noted that commercial development would evolve slowly, following population growth1 1 A similar situation prevailed in the Albion Area, that was part of an area planning process commencing in (date). Only recently has commercial development been constructed, 14 The recently endorsed Maple Ridge Commercial and Industrial Strategy recommends retention of all of the commercially designated lands in the Silver Valley Area. As this area develops, these commercial centres will be critical to defining the public realm. The Strategy also recommends flexibility in permitted uses, especially for the River Village. A portion of the commercial lands could be used for other community purposes, including libraries, community halls, and outdoor meeting space. Generally, the Silver Valley Area Plan should be considered on track, but with a somewhat different pace than anticipated. As noted by Civitas Consultants: “The key to the vision was the creation of a very robust plan that could accommodate a diversity of people, housing types, and amenities and was balanced ecologically, socially, and economically. A good plan should be structured to adapt to reasonable changes in market and amenity demand that can be expected to occur over the time of build out. I believe the Silver Valley Plan achieves all that.” CONCLUSION Although still in its early stages, the progress of the Silver Valley Area Plan may be evaluated on its ability to meet its original objectives, despite the changes that have affected its implementation. Population growth has been less than expected, and household size has not diminished. These two factors have affected the pace of development and potentially the population base that could be accommodated in the area. These impacts may be reflected in the development activity that has occurred to date. The market potential of the area was compared with Albion. Based on a comparison of over 200 single family lots in both areas, assessed values in Silver Valley were higher, indicating that the green space amenity it offers increases the desirability of the area. This relative market desirability points to the success of the Plan in its objectives to protect green space, viewscapes, and environmentally sensitive areas, and the market response to those efforts. The School District’s recent decision to reduce the number of school sites in the area has been a concern, especially given the large family base in the area. However, the physical design of each neighbourhood will remain, and the spaces that were considered for schools would be appropriate for other civic uses. These would offer a similar function of community connection. Commercial development is essential to the livability of the area. As expected, commercial development has been slow to evolve. As it is population serving, the commercial spaces will not likely be developed until the residential component of the Plan approaches buildout. For this reason, commercial designations are recommended to be retained until there is market potential for their realization. 15 The pace of eventual build-out in Silver Valley will depend on various factors such as population growth, demography, economic opportunities, land ownership, market trends, land consolidation potential, diversity of housing types, and the existing terrain, However, a review of development in the area indicates that the implemention of the Plan is on track, although at a different pace than originally imagined. _______________________________________________ Prepared by: Diana Hall, MA, MCIP, RPP Planner 2 _______________________________________________ Approved by: Christine Carter, M.PL, MCIP, RPP Director of Planning _______________________________________________ Approved by: Frank Quinn, MBA, P. Eng GM: Public Works & Development Services _______________________________________________ Concurrence: J. L. (Jim) Rule Chief Administrative Officer The following appendices are attached hereto: Appendix A: Map showing Silver Valley Unit Counts and Land Use Designations Appendix B: Developed Areas in Silver Valley "Original signed by Diana Hall" "Original signed by Christine Carter" "Original signed by Frank Quinn" "Original signed by J.L. (Jim) Rule" DATE: Sep 26, 2014BY: DTActive Development ApplicationsCity of PittMeadowsDistrict ofLangleyDistrict of MissionFRASER R.´NorthAlouetteRiverNorthAlouetteRiverAlouetteRiverAlouetteRiver224 ST FERN CRES132 AVE136 AVE136A ST249 STALOUETTE RD129 AVE237A STMARC RD239 ST130A AVE235 ST141 AVE238 STMILL STEDGE STDOGWOOD AVE227B STST130 CONNECTOR227A ST142 AVE251A ST228A STCALVIN CRESROCK RIDG E DR226 ST228 ST137 AVEBIRCH AVE127 PL227B ST136A AVE137 AVE133A AVEBOUL D ER PL126B AVEBARNSDALE ST128 AVE235A ST253A ST130 AVE128 AVE237 ST127AV E233 ST236A ST230 ST238 ST136 AVE130A AVE229 ST230A ST134 LOOP2 2 9 LOOP135B AVE129 AVE132 AVE129 AVE128 AVE239B STST250 ST128 AVEMCCAULEY CRESHALEY ST248A STSSHELDRAKE CRT127 AVE127 AVE231 ST228A ST249 ST LANE232 ST236 ST128 CRES234B ST128 AVE249 ST132 AVE240 ST228B STMCKERCHER DRBIRDTAIL DR132 AVEFERN CRES224 STDOCKSTEADER CIR235 STGRANITE WAY251 ST127 AVEHEMLOCK AVEHUSTON DR139 AVE139A AVEFOREMAN DRANDERS O N C R DRPARKSIDE CR240 ST229LANEGILBERT DRDOCKSTEADER LOOP138A AVE132A AVESHOESMITH CRSHOESMITH LOOP130A AVE233 ST133 AVELARCH AVEBALSAM ST232A ST229A ST136 AVE136A AV E133 AVEVISTA RIDGEDRNELSON PE A K D RBRYANT DRBLAKE LPCROSS RD229 B ST230 ST 229 ST246 STBLANEY RD230A ST130 AVESILVERVALLEYRD226 AVE129 AVE138B AVESILVERVALLEYScale: 1:16,500¬«103¬«100¬«31¬«38¬«5¬«21¬«12¬«23¬«60¬«52¬«60¬«17¬«33¬«20¬«54School Site(DMR Property)School Site(Not Purchased)School Site(Partially Purchased)OCP DesignationSCHOOL/PARKECO CLUSTERSHIGH DENSITY RESIDENTIALLOW DENSITY URBANLOW/MEDIUM DENSITY RESIDENTIALMEDIUM DENSITY RESIDENTIALMEDIUM/HIGH DENSITY RESIDENTIALDMRDMR¬«2¬«34¬«13CITY OF MAPLE RIDGEPLANNING DEPARTMENTBLANEYFORESTRIVER VILLAGEHORSEActiveDevelopmentApplications¬«16¬«18¬«20APPENDIX A DATE: Oct 15, 2014FILE: SilverValley_DevelopedAreas.mxdDeveloped Areas in Silver ValleyCity of PittMeadowsDistrict ofLangleyDistrict of MissionFRASER R.CITY OF MAPLE RIDGEPLANNING DEPARTMENT´NorthAlouetteRiverNorthAlouetteRiverAlouetteRiverAlouetteRiverScale: 1:16,500BY: DT~ 591 ha.Silver Valley Area BoundaryDeveloped Area Green Space (OCP Designations)ConservationOpen Space~ 82 ha.~ 246 ha.APPENDIX B City of Maple Ridge TO: His Worship Mayor Ernie Daykin DATE: October 20, 2014 and Members of Council FROM: Chief Administrative Officer ATTN: Council Workshop SUBJECT: 2014 Business Class Property Taxation EXECUTIVE SUMMARY: It is the practice of this municipality to review our tax rates to make sure they are reasonable in relation to other municipalities in the lower mainland. In May of 2007, Council was presented with information about property taxation for the Business and Light Industry classes which indicated that rates in Maple Ridge were competitive with other lower mainland municipalities. Our annual reviews since then have confirmed our competitiveness. This report examines the municipal portion of the tax rate assessed to Business Class properties in 2014. RECOMMENDATION: This report is provided for information only. No resolution is required. DISCUSSION: We looked at the municipal portion of the tax rate assessed to Business Class properties by reviewing: 1.Municipal Tax Rates We looked at the municipal portion of the Business Class tax rate to see where Maple Ridge ranks in comparison to other municipalities. While this type of analysis is straightforward to accomplish, it does not account for the differences in assessed property values from jurisdiction to jurisdiction. 2.Business Class Tax Multiples We looked at the Business Class tax multiple to see where Maple Ridge ranks in comparison to other municipalities. The Business Class multiple is calculated by taking the Business Class municipal tax rate and dividing it by the Residential Class municipal tax rate. While this method looks at the relative tax burden amongst the property classes, it does not account for the variability in assessed property value changes. 4.5 Page 2 of 8 3. Sample Properties We looked at the yearly percentage changes in assessed property values and municipal taxes from 2010 to 2014 from a sample of eight commercial businesses located within Maple Ridge. This report looks at Maple Ridge’s Business Class municipal property tax rate from these three perspectives. 1. Municipal Tax Rates In Maple Ridge, Business Class and Light Industry Class properties have the same tax rate and are treated as a composite class when setting the tax rates. This is done because the types of businesses in each of the property classes are quite similar. This alignment was achieved over a long period of time with small incremental adjustments. Not all municipalities follow this practice. All things being equal, one would expect municipalities with higher assessed property values to have lower municipal tax rates and municipalities with lower assessed property values to have higher municipal tax rates. This is confirmed with West Vancouver, which has the lowest municipal tax rate, and Mission, which has the highest municipal tax rate. There are some anomalies, such as New Westminster and Coquitlam, which have municipal tax rates that are relatively close to the municipal tax rate in Maple Ridge even though assessed property values are likely higher in those areas. As shown in Figure 1, in 2014, Maple Ridge’s Business Class municipal tax rate of $12.7314 per $1,000 of assessed value ranks as being fifteenth lowest of the nineteen lower mainland municipalities that were surveyed. Of the municipalities, the Business Class municipal tax rates range from a low of $4.2451 per $1,000 in West Vancouver, to a high of $14.5549 per $1,000 in Mission. Ten municipalities increased their Business Class municipal tax rates from 2013, while the remaining nine decreased their rates. Figure 1: Business Class Municipal Tax Rates – lowest to highest 2012 2013 2014 Municipality Business Rate Business Rate Business Rate Rank West Vancouver 4.75440 4.23400 4.24510 1 Surrey 7.07036 6.98799 7.01681 2 Richmond 7.53569 7.62851 7.28682 3 Vancouver 8.78096 8.20424 7.88427 4 North Vancouver, District 8.53774 8.60129 8.47875 5 North Vancouver, City 9.14484 8.61408 8.57249 6 Langley, City 8.60500 8.78440 8.88270 7 Burnaby 10.10000 9.46120 9.35700 8 Langley, Township 9.48130 9.82990 9.94960 9 Port Moody 9.84060 10.04190 10.19280 10 Chilliwack 9.93148 10.13818 10.26719 11 Delta 11.14928 11.02225 10.81870 12 Port Coquitlam 11.79410 11.86070 11.74160 13 Pitt Meadows 11.85360 12.11050 12.48220 14 Maple Ridge 11.75100 12.23070 12.73140 15 Abbotsford 11.86947 13.28373 13.02217 16 New Westminster 13.55380 13.01990 13.22830 17 Coquitlam 14.11730 13.75540 13.81270 18 Mission 14.62160 14.88790 14.55490 19 Page 3 of 8 2. Business Class Tax Multiples Looking at property tax rates, easily apparent is the fact that for many years the Business Class municipal tax rate for most communities has been higher than the Residential Class municipal tax rate. The tax multiple is one way that the tax rates between property classes are compared. To calculate the Business Class multiple, the Business Class tax rate is divided by the Residential Class tax rate - the resulting number is the Business Class tax multiple. Maple Ridge’s Business Class multiple based on 2014 tax rates for municipal purposes is 2.85. The Business Class municipal tax rate is 12.7314 and the Residential Class municipal tax rate is 4.4625. The multiple is 2.85 (calculated as 12.7314 ÷ 4.4625). In other words, the business taxpayer’s rate is 2.85 times higher than that of a residential taxpayer. Figure 2 is an overview of what our Business Class tax rates, Residential Class tax rates and the tax multiples have looked like over the years. Figure 2: Maple Ridge Business Class, Residential Class, Tax Multiple Year Business Residential Multiple 2010 11.7403 3.9124 3.00 2011 12.1045 3.8978 3.11 2012 11.7510 4.0888 2.87 2013 12.2307 4.2833 2.86 2014 12.7314 4.4625 2.85 Since 2010, our Business Class tax multiple has gone up, gone down, and in recent years it has been relatively stable. The main weakness of the tax multiple is that it is greatly affected by varying market value fluctuations between the property classes. In accordance with Council Policy, each year we adjust our tax rates to neutralize market changes. In Figure 3 we look at the effect of market value on Residential Class and Business Class municipal tax rates and the Business Class multiple since 2010. Market change in the Residential Class increased in 2011 and decreased in 2012, 2013 and 2014, while in the Business Class it increased in 2011 and 2012 and decreased in 2013 and 2014. The market change in each of the property classes differs from year to year, with the largest variance occurring in 2012 when it decreased 0.02% in the Residential Class, and it increased about 8% in the Business Class. For 2012, we required an additional 4.88% in funding to meet the approved budget. Because market values in the Business Class increased so much, the municipal tax rate decreased, and because they decreased in the Residential Class, the Residential Class municipal tax rate increased. Variability in market changes between the property classes in any given year means that there will be variability in the tax rate changes between the property classes. This has a direct impact on the business class multiple. The Business Class multiple initially goes up, but then decreases and continues to decrease. This wasn’t a deliberate tax policy to close the gap between Business Class and Residential Class municipal tax rates, but it was a direct result of the changes in assessed property values. Page 4 of 8 Figure 3: Effect of Market Value on Municipal Tax Rates and Business Class Multiple Residential 2010 2011 2012 2013 2014 Market change -5.38%-0.02%-1.20%-1.24% Tax Increase -4.99%4.88%3.50%2.95% Tax Rate 3.9124 3.8978 4.0888 4.2833 4.4625 Tax Rate Change --0.37%4.90%4.76%4.18% Business 2010 2011 2012 2013 2014 Market change -1.83%8.04%-0.56%-1.10% Tax Increase -4.99%4.88%3.50%2.95% Tax Rate 11.7403 12.1045 11.7510 12.2307 12.7314 Tax Rate Change -3.10%-2.92%4.08%4.09% Business Class Multiple 3.00 3.11 2.87 2.86 2.85 This table demonstrates that in the years when the market changes are similar for both property classes, as in 2013 and 2014, there is little change in the Business Class multiple. In the years where there is a significant difference in the market changes, as in 2011 and 2012, there is a significant change in the Business Class multiple. As shown in Figure 4, in 2014, Maple Ridge’s Business Class tax multiple is 2.9 (2.85 rounded), and ranks as sixth lowest of the nineteen surveyed municipalities. Our multiple is below the average multiple of 3.1. Figure 4 Business Class Tax Multiples, Based on General Municipal Rates – lowest to highest: Page 5 of 8 Figure 5 shows what the average Business Class multiple has looked like in BC since 1990. In recent years, the overall trend is that the gap between the Business Class and the Residential Class is getting smaller, just like in Maple Ridge and the majority of the surveyed municipalities. Figure 5: Business Class Multiple – BC Average In recent years, this issue has attracted a lot of attention in Vancouver. Figure 6 shows what the tax multiples look like for Vancouver. Also shown is the median for Metro Vancouver and where Maple Ridge fits. Figure 6: Business Class Multiple – Metro Vancouver Page 6 of 8 The basic taxation system that we have is one that is tax on the value of property. Property values are determined by BC Assessment. Municipalities set the tax rates. When we set tax rates, we try to neutralize the impact of market value changes. We don’t have to do this; we can focus on tax rates. A multiple of 2:1 could be reached by reducing the taxes collected from the Business Class. Moving about $3.4 million to the Residential Class would do this. This would equate to about a 6.5% increase in the municipal tax rate for the Residential Class. More importantly, Council would be allowing market value fluctuations to enter into the setting of taxation policies. At the end of the day, budgets are balanced; however, benefits to one property class are at the expense of another. This is illustrated in Figure 7. Figure 7: Scenario – Existing Method vs 6.5% Increase Scenario 1 - Existing 2014 Tax Rate Revenue Residential 4.4625 51,558,602 Business 12.7314 13,340,441 Ratio 2.85:1 64,899,043 Scenario 2 – 6.5% Increase 2014 Tax Rate Revenue Residential 4.7547 54,934,715 Business 9.5094 9,964,328 Ratio 2:1 64,899,043 3. Sample Properties Finally, the municipal property taxes for the Business Class taxpayer in Maple Ridge are examined. Last year we tried a different approach where we looked at eight sample commercial properties from various locations within Maple Ridge. This year we will look at the same eight properties and the yearly percentage changes in property assessments and the municipal portion of the property taxes from 2010 to 2014. We will look at the following types of commercial properties: 1. Commercial office in a stratified building 2. Retail store 3. Convenience store with gas station 4. Small commercial building with a coffee shop and two other commercial units 5. Coffee shop 6. Family restaurant 7. Bank 8. Big box retail store Figures 8a and 8b show the yearly percentage changes in assessed property values and the municipal portion of the property taxes for each of the eight sample properties. First we’ll look at the change in assessed property values. There are numerous subsets of BC Assessment’s Business Class, including the commercial property types listed above. While assessed property values for one of the subsets may experience an increase in values, other subsets may experience decreases. Page 7 of 8 On looking at the percentage change in assessed property values in Figure 8a, from year to year, assessed property values increased as much as 72.4% for Sample #7- the bank in 2012, and decreased 28.7% for that same property in 2014. We contacted BC Assessment about the rather large changes in assessed values for the bank property, Sample #7. BC Assessment staff advised that for the 2012 Assessment Roll, they conducted a review of all banks in the Fraser Valley Assessment Area and as a result some properties saw significant increases in value. In 2014, the owner of the bank appealed their 2014 Property Assessment which resulted in the value being reduced. BC Assessment staff said that as a result of this appeal, they are currently reviewing older bank properties in Maple Ridge’s downtown core. In their news release of January 2, 2014, BC Assessment stated that owners of commercial and industrial properties in the Fraser Valley would typically see changes in their 2014 Property Assessments ranging from -5% to +5%. For the most part, changes in the assessed values for our sample commercial properties reflect this range. From 2013 to 2014, just as we saw with the Residential Property Class in the report provided to Council earlier this year, there is variability in the changes in assessed values. The change in assessed property values in the sample properties range from an increase 3.6% for the family restaurant to a decrease of 3.6% for the big box retail store. An exception to this is the 28.7% decrease in assessed value for the bank property explained earlier. Four of the sample properties experienced no change to their assessed property values from 2013. Figure 8a: Sample Commercial Properties – Change in Assessed Property Values Next, in Figure 8b, we’ll look at the percentage change in the municipal portion of the property taxes for the sample properties. As there is variability with the changes in assessed property values, there is also variability with the changes in municipal property taxes. Local governments do not have the legislative authority to smooth tax increases amongst properties. Over the five year period from 2010 to 2014, yearly changes for the municipal portion of the property taxes increased as much as 67.4% for the bank property in 2012, and decreased 25.7% for the bank property in 2014. From 2013 to 2014, there is a range in the municipal tax increases experienced by our sample properties. Increases range from a low of 0.4% for the big box retail store to a high of 7.8% for the family restaurant. An exception to this is the bank property which experienced a decrease in municipal property taxes of 25.7%. It is important to note that while some of the sample properties may experience the same percentage tax increase, the tax bills will vary depending on the assessed property values. 2010 2011 2012 2013 2014 1 Commercial Office-Strata 24.8%0.0%0.0%2.2%0.0% 2 Retail Store -3.4%4.4%16.6%3.8%0.0% 3 Convenience Store/Service Station 4.7%-0.3%0.8%4.2%0.0% 4 Small Commercial Building w/Coffee Shop & 2 Other Units 7.7%0.4%11.2%0.0%-1.6% 5 Coffee Shop 6.5%0.0%7.5%3.1%0.0% 6 Family Restaurant 3.7%0.0%8.1%-3.8%3.6% 7 Bank 2.7%0.0%72.4%0.0%-28.7% 8 Big Box Retail Store 6.2%5.9%0.0%0.0%-3.6% Total 5.1%2.5%13.6%0.2%-6.8% Description Page 8 of 8Chief Administrative Officer Figure 8b: Sample Commercial Properties – Change in Municipal Property Taxation CONCLUSION: It is important for the City of Maple Ridge to review our municipal tax rates to make sure they are reasonable in relation to other municipalities. This is not a simple task and each indicator has its own strengths and weaknesses. This is why we look at a variety of indicators over a period of time. The City’s Business Class municipal tax rate in 2014 is fifteenth lowest of the nineteen surveyed municipalities. This is not unexpected as most municipalities in the survey group have higher assessed property values. It is noteworthy that tax rates in Coquitlam and New Westminster are higher than ours, even though those communities likely have assessed property values that are higher than those in Maple Ridge. The City’s Business Class tax multiple continues to rank lower than the average. In 2014, assessed property values for residential and commercial properties decreased by about 1%, and municipal tax rates were adjusted to generate the funding required in the Financial Plan. With respect to assessed property values and municipal taxes, we looked at the yearly percentage changes in property assessments and the municipal portion of the property taxes from 2010 to 2014 for eight sample properties within Maple Ridge. As there was some variability with the percentage changes in assessed property values for these properties, there was also some variability around the percentage changes in municipal property taxes. Overall, our data indicates that Maple Ridge’s Business Class municipal tax rates are reasonable when compared to other lower mainland municipalities. _______________________________________________ Prepared by: Jacquie Bergmann Research Technician _______________________________________________ Approved by: Paul Gill, BBA, CGA, FRM General Manager: Corporate & Financial Services _______________________________________________ Concurrence: J.L. (Jim) Rule 2010 2011 2012 2013 2014 1 Commercial Office-Strata 24.7% 3.1% -2.9% 6.3% 4.1% 2 Retail Store -3.5% 7.6% 13.2% 8.1% 4.1% 3 Convenience Store/Service Station 4.6% 2.8% -2.2% 8.5% 4.1% 4 Small Commercial Building w/Coffee Shop & 2 Other Units 7.6% 3.5% 7.9% 4.1% 2.4% 5 Coffee Shop 6.4% 3.1% 4.4% 7.3% 4.1% 6 Family Restaurant 3.6% 3.1% 4.9% 0.1% 7.8% 7 Bank 2.6% 3.1% 67.4% 4.1% -25.7% 8 Big Box Retail Store 6.1% 9.2% -2.9% 4.1% 0.4% Total 5.0%5.7%10.3%4.3%-6.8% Description “Original signed by Paul Gill” “Original signed by Jim Rule” “Original signed by Jacquie Bergmann” City of Maple Ridge TO: His Worship Mayor Ernie Daykin DATE: October 20, 2014 and Members of Council FILE NO: FROM: Chief Administrative Officer ATTN: Council Workshop SUBJECT: 2014 Major Industry Class Property Taxation EXECUTIVE SUMMARY: The Finance Department provides Council with reports on property assessments and taxation. This information allows Council to see how our taxes compare to those of other municipalities in our area. A report on Residential Class property taxes was provided in June, and it concluded that Residential Class property taxes in Maple Ridge are amongst the lowest in the region. A review was done on the Major Industry Class tax rates and the recommendation from the Audit and Finance Committee and Council was a 5% property tax reduction in both 2009 and 2010 to support additional investments in the subject property and to keep rates competitive. In the 2014–2018 Financial Plan, Council directed that the property taxes charged to Major Industry Class properties be reduced. For 2014, the Major Industry Class municipal tax rate was reduced and did not receive the same budgeted tax increase that other Maple Ridge property classes received resulting in an overall tax savings of about $70,000. The purpose of this report is to see how our current Major Industry Class municipal tax rate in 2014 compares to other municipalities in our area. RECOMMENDATION: This report has been provided for information only. No resolution is required. DISCUSSION: In Maple Ridge, the only Major Industry Class properties are mill properties. In 2009 and 2010, the municipal portion of the property taxes for the Major Industry Class was reduced by 5%, while other property classes received the budgeted tax increase. In 2011 and 2012, the Major Industry Class received the same property tax increase as the other property classes. In 2013, a portion of the mill’s property previously included in the Light Industry Class was shifted to the Major Industry Class. This would have generated additional revenue as it is considered a non- market change and the municipal tax rate for Major Industry is higher than Light Industry, however, the Major Industry Class municipal tax rate was adjusted to negate the additional property taxes that would have been charged. As part of the Financial Planning discussions in December 2013, Council authorized $70,000 to reduce the Major Industry Class property taxes and this is reflected in the 2014 Major Industry Class municipal property tax rates. 4.6 Page 2 of 4 Municipality Major Industry Rate Major Industry Rate Major Industry Rate Rank Langley, Township 8.88430 8.83280 8.76410 1 Surrey 11.42530 11.41012 11.56272 2 Richmond 14.43540 14.42822 13.71527 3 West Vancouver 13.21930 13.86750 15.26860 4 North Vancouver, City 27.50000 27.50000 27.50000 5 Coquitlam 29.18610 29.19840 28.85520 6 North Vancouver, District 41.17101 36.76622 29.33316 7 New Westminster 30.33470 28.56440 29.51880 8 Vancouver 31.98356 32.98091 33.77460 9 Maple Ridge 36.34180 37.23420 34.91630 10 Delta 35.11888 35.11899 35.21332 11 Pitt Meadows 35.39380 37.52650 40.27550 12 Burnaby 47.30730 44.95180 47.10730 13 Port Moody 61.87760 65.28500 68.54770 14 20142013 Major 2012 Major As shown in Figure 1, in 2014, assessed property values for the Major Industry Class decreased 1.3%. The Major Industry Class municipal property tax rate was adjusted to 34.9163. The municipal tax rate multiple decreased to 7.8, and municipal taxes are $620,606. Because we reduced the Major Industry Class municipal tax rate and did not apply the same budgeted tax increase that other Maple Ridge property classes received, the overall tax savings amount to about $70,000. Figure 1: Maple Ridge Major Industry Class - Year to Year Comparison 2012 % Change 2013 % Change 2014 Assessed Value $17,628,000 2.20% $18,016,100 -1.34% $17,774,100 Municipal Tax Rate 36.3418 2.46% 37.2342 -6.23% 34.9163 Municipal Tax Rate Multiple 8.9 -2.33% 8.7 -9.99% 7.8 Municipal Taxes $640,633 4.71% $670,815 -7.48% $620,606 As in previous years, in this report we will look at two indicators to determine how the City’s Major Industry Class municipal tax rate compares to other lower mainland municipalities. Municipal Tax Rate Comparison: This indicator looks at the municipal tax rate in our municipality and compares it to the municipal tax rate for the same class in other municipalities. While this indicator is fairly easy to obtain, it is problematic in that similar properties in one community may be valued very differently in other communities. As shown in Figure 2, in 2014, the City’s Major Industry Class 4 municipal tax rate is $34.9163 per $1,000 of assessed value. Among the fourteen surveyed municipalities, our tax rate ranks as tenth lowest, while in 2013 and 2012 it ranked as eleventh lowest. Figure 2: Major Industry Class Municipal Property Tax Rates – lowest to highest Page 3 of 4 Municipality Multiple Multiple Major Industry Rate Multiple Rank Langley, Township 2.8 2.7 8.76410 2.6 1 Surrey 4.9 4.8 11.56272 4.7 2 Richmond 7.2 6.8 13.71527 6.1 3 Maple Ridge 8.9 8.7 34.91630 7.8 4 New Westminster 8.6 8.1 29.51880 7.9 5 West Vancouver 7.3 8.2 15.26860 8.6 6 Coquitlam 9.6 9.6 28.85520 9.0 7 Delta 10.0 10.1 35.21332 9.8 8 Pitt Meadows 9.5 9.6 40.27550 10.0 9 North Vancouver, City 11.6 11.2 27.50000 11.0 10 North Vancouver, District 17.4 15.5 29.33316 12.0 11 Vancouver 15.8 17.4 33.77460 18.3 12 Port Moody 18.7 19.2 68.54770 19.5 13 Burnaby 21.2 20.1 47.10730 20.1 14 20142013 Major 2012 Major It is important to remember that not all assessed property values are comparable across the lower mainland. The Major Industry classification by BC Assessment can be very broad. It includes a wide variety of major industry types, including saw mills, cement and asphalt plants, grain elevators, oil refining plants, docks and wharves, shipyards and more. North Vancouver City may have a lower tax rate, but the assessed values for a waterfront property similar to those owned by Interfor in Maple Ridge would likely be much higher. Notable is that the Major Industry properties in the City of North Vancouver are located along the waterfront and are operated as ports. Ports have a regulated Provincial Cap tax rate of $27.50 per $1,000 of assessed value. For this reason, we should also look at another indicator such as the municipal tax rate multiple. Municipal Tax Rate Multiple Comparison: This indicator looks at the relative tax rate on one class, as a ratio of the tax rate charged to another property class. The “other” class used in this analysis is the Residential Class. As outlined in previous reports to Council, the main weakness of this indicator is that it is greatly affected by varying market value fluctuations between the property classes. As shown in Figure 3, in 2014, the Maple Ridge’s Major Industry Class municipal tax rate multiple of 7.8 ranks as fourth lowest amongst the fourteen surveyed municipalities, while in 2013 and 2012, it ranked as sixth lowest. In 2014, our multiple is below the average tax rate multiple of 10.5. This year four municipalities saw increases in their multiples and nine experienced decreases. One municipality, Burnaby, experienced no change. Since 2007, our multiple for this class has dropped from 15.6, making it one of the most significantly improved of the surveyed municipalities. This is due to changes in the assessed property values and our tax policy of adjustment for market appreciation. Figure 3: Major Industry Class Municipal Property Tax Rate Multiples – lowest to highest Page 4 of 4 CONCLUSION: Maple Ridge’s position in terms of Major Industry Class municipal property tax rates and multiples has improved as a direct result of direction from Council. Maple Ridge now seems to be well placed when compared to other municipalities in the lower mainland. Our Major Industry Class municipal tax rate is ranked as tenth lowest when compared to the fourteen surveyed municipalities, and our Major Industry Class municipal tax rate multiple ranks as fourth lowest, below the average municipal tax rate multiple. It appears that the tax burden against Major Industry Class properties has become more equitable, but further improvements are necessary. In the 2014–2018 Financial Plan, Council directed that the property taxes charged to Major Industry Class properties be reduced. For 2014, the Major Industry Class municipal tax rate was reduced and did not receive the same budgeted tax increase that other Maple Ridge property classes received resulting in an overall tax savings of about $70,000. We will continue to review the tax burden against our other property classifications to ensure we remain well positioned when compared to neighbouring municipalities. “Original signed by Jacquie Bergmann” _______________________________________________ Prepared by: Jacquie Bergmann Research Technician “Original signed by Paul Gill” _______________________________________________ Approved by: Paul Gill, BBA, CGA, FRM General Manager: Corporate & Financial Services “Original signed by Jim Rule” _______________________________________________ Concurrence: J.L. (Jim) Rule Chief Administrative Officer