Grand Forks Development Cost Charge Bylaw No. 1425, 1994

Grand Forks, British Columbia · No. 1425 · adopted 1995-05-23 · summary & facts

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THE CORPORATION OF THE CITY OF GRAND FORKS ****************************************** BYLAW NO. 1425 A Bylaw to Impose Development Cost Charges WHEREAS pursuant to the Municipal Act, Council may, by bylaw, impose development cost charges under the terms and conditions of the Act; AND WHEREAS the development cost charges may be imposed for the purpose of providing funds for the municipality to pay the capital costs of providing, constructing, altering or expanding sewage, water, drainage and highway facilities and for the acquisition of park land or any of them, in order to serve, directly or indirectly, the development in respect of which the charges are imposed; AND WHEREAS a development cost charge is not payable where: a) the development does not impose new capital cost burdens on the municipality, or . b) a development cost charge has previously been paid for the same development unless, as a result of further development, new capital cost burdens will be imposed on the municipality; AND WHEREAS in fixing development cost charges imposed by this bylaw, pursuant to Section 983(2) of the Municipal Act, Council has taken into consideration furture land use patterns and development, and the passing of works and services, described in an official community plan and Council considers that the charges imposed by this bylaw: a) are not excessive in relation to the capital cost of prevailing standards or service in the municipality; b) will not deter development in the municipality; c) will not discourage the construction of reasonably priced housing or the provision of reasonably priced serviced land in the municipality; / Continued on Page 2 Page,2 AND WHEREAS in the opinion of Council the charges imposed by this bylaw are related to capital costs attributable to projects involved in the capital expenditure program of the municipality; NOW THEREFORE the Council of the Corporation of the City of Grand Forks in open meeting assembled enacts as follows: 1. This bylaw may be cited as "Grand Forks Development Cost Charge Bylaw No. 1425, 1994". 2. For the purpose of this bylaw, the definitions of words and phrases that are not included in this section shall have the meaning assigned to them in the Municipal Act. "Building Lot" means the smallest unit into which land is subdivided as shown on the records of the Land Title Office. "Floor Area" means the gross area within the perimeter of a building measured at each floor, and includes basements or portions of basements, the total space of enclosed verandahs, porches and other spaces within a building but excluding basement areas with less than 1.8 m vertical clearance. "Dwellinq Unit" means one or more rooms used or intended to be used for the residential accommodation of one family when such room or rooms contain(s) kitchen, bathroom and sleeping facilities for one family. "Municipality" means the Corporation of the City of Grand Forks. "Zone" means a zone designated under the current City of Grand Forks Zoning Bylaw. 3. Every person who obtains: a) approval of the subdivision of a parcel of land under the Land Title Act or the Condominium Act, or b) a building permit authorizing the construction, or alteration of buildings or structures for a purpose other than the construction of three (3) or less self-contained dwelling units, or / Continued on Page 3 Page;3 c) a building permit authorizing construction, alteration, or extension of a building or structure, other than a building or portion of it used for residential purposes, where the value of the work exceeds Fifty Thousand Dollars ($50^000) or another amount that the Minister may prescribe shall pay at the time of the approval of the subdivision or the issue of the building permit, as the case may be, to the municipality the applicable development cost charges as set out in Schedule "A" hereto. If any section, subsection, sentence, clause or phrase of this bylaw is for any reason held to be invalid by the decision of any Court of competent jurisdiction, the invalid portion shall be severed and the decision that it is invalid shall not affect the validity of the remainder of this bylaw. Read a FIRST time this 5th day of December, 1994. Read a SECOND time this 5th day of December, 1994 Read a THIRD time this 16th day of January, 1995. Certified a true copy of Bylaw No. 1425 as at Third Reading. ><^7T^)je_ ^ Tv/z^ J.L.KBurch - ^it^ Clerk APPROVED BY THE INSPECTOR OF MUNICIPALITIES the 10th day of May, 1995. Continued on Page 4 Page 4 FINALLY ADOPTED this 23rd day of May, 1995 t- Ma^6r 1. Su'gimoto '^-A»</ J.L. y&urch - 'CTty^Clerk CERTIFICA T E I hereby certify the foregoing to be a true copy of Bylaw No. 1425 as passed by the Municipal Council of the City of Grand Forks on the 23rd day of May, 1995. Clerk of the Municipal Council of the City of Grand Forks SCHEDULE "A" LAND USE CATEGORY DEVELOPMENT COST CHARGE SERVICES HIGHWAY STORM SANITARY WATER DRAINAGE SEWER OPEN TOTAL PER SPACE UNIT single Family Two Family & Semi-detached Multiple Family Mobile Home Park Zone Commercial Zones Industrial Zones Institutional n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a $2,377 $3,803 n/a n/a n/a n/a n/a $2,435 3,896 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a $4,812 $7,699 n/a n/a n/a n/a n/a lot lot n/a n/a n/a n/a n/a TYPE OF BUILDING DEVELOPMENT COST CHARGE SERVICES HIGHWAY STORM SANITARY WATER DRAINAGE SEWER OPEN SPACE TOTAL PER UNIT Single & Two Family & Semi-detached dwelling Multiple Family Mobile Home Park Commercial Building Industrial Building Institutional Bldg. n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a $1,902 $1,902 $4.07 $4.07 $4.38 $1, $1, $4. $2. $4. 948 948 97 66 58 n/a n/a n/a n/a n/a $3, $3, $9 $6 $8 850 850 .04 .73 .96 dwelling unit M.H. pad area in M area in M area in M Province of British Columbia No. tetu'tcr^i ^Approfial Under the provisions of section 987 of ffj^ ______ Municipal Act J hereby approve Bylaw No. 1425 the Corporation of of ______ the City of Grand Forks _Q of which is attached hereto. Dated this. ,0^ day of^Pet/ / ?9fr f Jiputy Inspector of Municipalities M28-2068 THE CORPORATION OF THE CITY OF GRAND FORKS MEMORANDUM ********** TO: MAYOR & COUNCIL FROM: PHIL TAYLOR, Administrator DATE: November 17, 1994 RE: DEVELOPMENT COST CHARGE (D.C.C.) Staff has prepared the proposed Development Cost Charge Bylaw to where political input is required. The reason for the bylaw is to assist the community with the anticipated future infrastructure requirements of the City of Grand Forks. A Development Cost Charge Bylaw has not been instituted in Grand Forks, even though the need for one was identified in the early 1980/s. Staff are using the work done by Kerr Wood Leidal Engineers as the basis for the infrastructure requirements to be funded by development cost charges. Development Cost Charges are: 1. Only the responsibility of those building/developing in the coimnunity. 2. A means of reducing tax burden to all citizens. 3. The preferred means of financing new capital projects in a community. The City anticipates infrastructure capital costs of over $14 million dollars. In the work done by K.W.L., their February presentation to Council, $8 million was to be future development's share and $6 million was to be existing development's share. In the bylaw process. Council will have to set the split and rationale for it. If Council does not implement D.C.C., the taxpayers of Grand Forks would finance all $14 million, thus contributing to an increased property tax load over the years. Development Cost Charges are a form of user-pay that is strongly encouraged by the Province of B.C. We need to determine the proposed charges for infrastructure renewal. The proposal submitted by K.W.L. broke the development cost charges into two segments, specified area charges and charges City wide. The results they come up with are in the attached Table - 8, #4 from their summary report. Page 1 of 14 \\^ ^\\^ Page 2 My feeling is that Development Cost Charges of $12,000 for Zak's Slough specified area, $14,000 for Southwest, $16,000 for the Northwest and $18,000 for the east side are so high that Council wouldn't be able to implement them. In my opinion, there are three factors Council should consider before developing the bylaw. First, Council may wish to reduce the charge by creating a larger assist factor picked up by the general taxpayer. This could be appropriate in light of the large number of new dwellings added in the last seven years (222) and the fact residential units or subdivisions of three or less are exempt. Secondly, drainage and roadways are an expensive component that might not be appropriate for D.C.C.'s and finally, the numbers proposed don't reflect Provincial or Federal grants received. We need you input on these items before the columns can be filled in. In addition to changes that may result from the above, Council is reminded that only projects listed in the expenditures program bylaw are eligible to be funded by D.C.C.'s. The City of Grand Forks 1994 Bylaw lists only a few that K.W.L. used to derive these charges. The D.C.C. Bylaw would have to be amended each time aproject was completed or new projects worked their way onto the Capital Expenditure Program Bylaw (normally 5 years). The following is an analysis of the projects identified, objectives, the time frame for construction^ the cost estimate, the funding options and reference documents. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE; FUNDING: WATER PROJECT West side reservoir (1.0 million gallons) Required to balance the system and provide the required level of fire-flow protection to all areas of the City. 1996 $1,391,000 D.C.C. & Water Fund (note: it on Canada/B.C. Infrastructure progran consider for revenue sharing 25% to 50% Page 2 of 14 ^ l\ Page 3 PROJECT: Westside Feedermain Project OBJECTIVE: New feedermain along 76th Ave. from reservoir to Donaldson Dr. 1450 m of 300 mm & 300 m of 250 mm. PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE; FUNDING: 1996 $787,306 D.C.C. & Water Fund (as with reservoir, not on Canada/B.C. Infrastructure program, consider for revenue sharing. PROJECT: OBJECTIVE: Johnson Flats the following water main To provide extensions: 18th St. feedermain 1000m of 300 mm dia. between 68th & 59th Ave.; 60th Ave. distribution link 180 m of 150 mm dia. between 18th & 19th St.; 59th Ave. distribution loop 400 m of 200 mm dia. between 18th & 12th St.; - 12th St. distribution loop 670 m of 150 mm dia. between 59th Ave. and north end of DL 382; - 56th Ave. distribution link 50 m of 150 mm dia. at Boundary Drive intersection; 17th St. distribution link 60 m of 150 mm dia. at 78th Ave. intersection. PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: 1995 $445,000 Approved Infrastructure Grant: Federal Gov/t. $148,333 Provincial Gov't. $148,333 City Slag Fund $148,333 Page 3 of 14 ^©^ \ PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: PG.t}'^ '^ New Water W&ll To develop a new groundwater well No. 6 in Johnson Flats area to increase water supply. 1997 $160,000 D.C.C. Water Fund PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Construct goundwater well, Pump station No. 6 Put new well into service. 1998 $279,000 D.C.C. Water Fund PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Replace East side booster pump station. Upgrade East side booster pump station. Replace U/V treatment with chlorination plant. 1998 $97,000 D.C.C. Water Fund. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Strengthen feedermain system on West side. 1999 $687,000 D.C.C.y Water fund. Page 4 of 14 ^1^ Page 5 PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Replace Overton Creek Ulta violet disinfection facility. 2004 $200,000 D.C.C. Water Fund. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Upsize feedermain system in Ruckles Area. 2009 $384,000 D.C.C. Water Fund. WASTEWATER COLLECTION PROJECTS Upgrade Pump Stations and install SCADA System. Upgrade efficiency and meet new WCB regulations. 1995 (note: very unlikely) $318,000 Infrastructure grant - unlikely. D.C.C. Sewer Fund. Page 5 of 14 non ^^ Page 6 PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE; FUNDING: Replace North side trunk sewer, 1995 $375,000 Approved Infrastructure Grant; Federal Gov't. $125,000 Provincial Gov't. $125,000 City Slag Fund $125,000 PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Upgrade West side trunk sewer, 1997 $91,000 D.C.C. & Sewer Fund. WASTEWATER TREATMENT PROJECTS PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Rehabilitate lagoon treatment system. Clean out sludge accumulations to meet environmental discharge criteria. 1995 $250,000 D.C.C., Infrastructure, Slag, Pa' 6 of 14 W\ I' ^ Page 7 PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Construct Phase 1 of a replacement wastewater treatment facility. Move from primary to secondary treatment, meet new environmental standards, be prepared to accommodate growth. 1995/96 $2,170,000 - Phase l.B Infrastructure - likely $1,200,000 remainder D.C.C.'s, sewer fund, slag fund. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Construct Phase l.B of Wastewater Treatment Facility. Needed to be done as soon after phase l.A as funding available. l.A works but l.B needed to treat sludge. 1996/97 Remainder of $2,170,000 left from l.A D.C.C., Revenue sharing, long term debt sewer fund. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Construct Phase 2 of treatment facility. Upsize to meet population increase from 5,000 to 7,000 2014 $1,379,000 D.C.C., sewer fund, grants. Page 7 of 14 Wi\\^ Page 8 ROADWAY UPGPADING PROJECTS PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Reconstruct Boundary Dr. to a collector standard. 1996 $412,000 D.C.C., General taxation (doesn't qualify for revenue sharing). PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Reconstruct Granby Road to an arterial standard. Alleviate heavy traffic from Valley Heights and out of town subdivisions . 1999 $513,000 Revenue sharing 50%, D.C.C.y and General taxation. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Complete Phase 1 of 68th Ave./19th St Upgrading to collector standard. 2004 $200,000 General taxation. Pa 8 of 14 w^^ Page 9- PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Complete Phase 2 of 68th Ave./19th St, Upgrading to collector standard. 2009 $200,000 General taxation. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Complete Phase 3 of 68th Ave./19th St, Upgrading to collector standard. 2014 $1,200,000 General taxation. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: SURFACE DRAINAGE COMPONENTS Install Boundary Dr. storm sewer in conjunction with road reconstruction. 1996 $166,000 D.C.C., General taxation. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Install Granby Rd. storm sewer in conjunction with road reconstruction. 1999 $246,000 D.C.C., General taxation, Page 9 of 14 w^^ PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Page 10 Upgrade drainage specified area. outlet for Northwest 2004 $526,000 D.C.C., Northwest specified area, PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE: FUNDING: Upgrade drainage specified area. outlet for Eastside 2004 $126,000 Q.C.C., Eastside specified area. PROJECT: OBJECTIVE: PROPOSED CONSTRUCTION SCHEDULE: COST ESTIMATE! FUNDING: Complete Phase 1 of storm sewer system for Southwest specified area. 2009 $400,000 D.C.C., Southwest specified area. These are the projects that have been identified to be included in the Development Cost Charge philosophy. The City is restricted by the Municipal Act about how it can calculate and implement development cost charges. Th- qs for Council to watch for in considering how to charge are: exemptions - less than 4 self contained dwelliicr uni.s. - doesn't impose new capital cost burdens. amounts - maybe varied for different zones, areas, uses capital costs for classes of development, si2",e of lots, or numbers of lots. Page 10 of 14 ^\ Page 11 future considerations - cpsts ean't be excessive in relation to the capital cost of prevailing standards of service. - can't deter development. - can't discourage reasonably priced housing or land. adoption procedure - requires Inspector of Municipalities approval. - has to relate to capital costs in capital expenditure bylaw. Council has been considering development cost charges on documentation prepared by Kerr Wood Leidal. The first run of the numbers was for sewer, water, roads and drainage broken into 4 specified areas. These numbers are suspect as they don't consider the capital expenditure bylaw, the costs might be considered excessive, deter development and discourage reasonably priced housing and land. One of the main issues included in these calculations is drainage which imposes new capital cost burdens on new development that hasn't been the practise in Grand Forks. I would also note that the new development in the last few years, as well as those that are exempt, should increase the proportion the general taxpayer has to pay and reduce the portion new development has to pay. Summary of costs the City of Grand Forks can include in a Development Cost Charge Bylaw based on 1994 Capital Expenditure Program Bylaw. ITEM Johnson Flats Westside Reservoir 5 Watermain Project Develop Groundwater Well No. 6 Groundwater Well No. 6 Pump Station Replace Eastside Booster Pump Station Replace Northside Trunk Sewer Upgrade Pump Station S Install SCADA System Sewage Treatment Plant Reconstruct Boundary Dr. to collector standard Install Boundary Dr. Storm Sewer TOTALS $ $2, $ $ $ $ $ $2, $ $ $6, TOTAL COST 445,000 178,000 '» 160,000 279,000 97,000 375,000 348,000 ,400,000 412,000 166,000 ,860,000 LESS GRANTS $ $ $ $ $ $ $ $1, $ $ $1, 296,667 9 9 0 9 250,000 0 ,000,000* 0 0 ,546,667 LESS PRORATE TO EXISTING $ $1, $ $ $ $ $ $ $ $ $3, 148,: ,742,' 80,1 139,! 48,! 125,1 333 400 000 500 500 000 261.000 800,1 412,1 166,1 ,922,' 000 000 000 733 NET COST FOR D.C.C. BYLAW CALCULATION $ $ $ $ $ $ $ $ ? $ $1, 0 435,600 80,000 139,500 48,500 0 87,000 600,000 0 0 ,390,600 *This is not confirmed. This number is as a result of consultation with Minister Clarke's office and K.W.L. Therefore total to be included in D.C.C. calculations is $1,390,600. Page 11 of 14 (Wv?tw Page 12 Proposal to allocate infrastructure requirements between existing population (plus exempt) and new growth. 1. Johnson Flats - No growth potential. City picks up cost. 2. Westside Reservoir - Advantage to existing population in that it upgrades capacity and accommodates fire flows. On a population basis, 5 yr. horizon is to go from 4,000 to 5,000, 80% to existing 20% to new growth, City wide. 3.& 4. Ground water Well #6 & Pump Station - K.W.L. has identified significant growth potential in this area. This may be somewhat mitigated by floodplain and A.L.R. constraints, however, an estimate of at least 50% of this capacity increase is driven by new growth. K.W.L. advises that strengthening the supply and the feedermain network provides a uniform benefit in terms of an improved level of service so this should be considered City wide. 5. Replace Eastside Booster Pump Station - This has considerable benefit to existing, while enabling growth. Likely 50% share to new growth is appropriate City wide. 6. Replace Northside Trunk Sewer - This project is included in Infrastructure funding and likely will be completed before significant D.C.C.'s are collected. The non-grantable portion would be picked up by existing. 7. Upgrade Pump Stations and Install SCADA System - This is in infrastructure grants but it is unlikely it will be funded. This is important to existing as we are at risk on these (they didn't meet current standards). Suggest 75% existing and 25% D.C.C. 8. Sewage Treatment Plant Upgrade - We are lobbying to have some of this funded through infrastructure program. Best guess would be about $ly000,000 in funding. The remaining $1.4 million is hard to assess due to the fact that about $1.5 million of the $2.4 million will bring us into compliance but without the additional $.9 million we won't be upgraded to secondary treatment. I would suggest the split is as follows: $1.0 million to grants, $.5 million and $.3 million = $.8 million to existing and $.6 million to D.C.C.'s. Tba portion to D.C.C.'s might be too high considering that Phas 2 of the project may be needed relatively soon if Grand For reaches the 5,000 population before the end of this 5 year c^ '.e. 9. Reconstruct Boundary Drive - This is a local road hat is meant to eliminate existing traffic bottleneck. £; lli, be 100% funded by existing. Page 1 ' of 14 tW -i) )g^ Page 13 10. Storm Sewer Boundary Drive - Again^ this is, in conjunction with planned roadway project. Council has to determine if it is desirable to implement D.C.C.'s for drainage. This would be hard to justify. Recommend all is charged to existing. Number of Dwelling Units - In K.W.L. study, scenario A takes Grand Forks population from present estimate of 4,000 to 5,000. They indicate that this relates to a potential 289 additional dwelling units. Calculation of Base Charge - Total Net Cost attributable to new growth Estimated number of new units Development Cost Charge $1,390,600 289 $4,8i27unit This would provide a basis for residential single family rate. However, D.C.C.'s will be charged on multi-family and industrial which will require a formula to calculate. The following table could be used to determine suitable relationship. TYPE OF DEVELOPMENT PER UNIT EQUIVALENT FACTORS WATER RATIO SEWER RATIO One family residential Two family residential Med. density residential Commerical Industrial Institutional lot lot dwelling unit area in M" .2 area in M' area in M' $2,435 1 $2,377 1 $3,896 1.6 $3,803 1.6 $1,948 .8 $1,902 .8 $4.97 .00204 $4.07 .00171 $2.66 .00109 $4.07 .00171 $4.58 .00188 $4.38 .00184 Page 13 of 14 ^/ Page 14 T have used data available t© develop what I feel are achievable development cost charges. Developers will approach Council stating that the imposition of these charges makes their project unattainable. This proposal can be reworked however Council wishes, however this proposal has developers paying $4,812/unit while the existing population pays $10,628 for infrastructure improvements partially triggered by new growth. Council should satisfy themselves that the concept is sound, determine if I have used the right components. I recommend Council receive this information and review the attached bylaw which will formally be submitted at a later meeting at the direction of Council. Respectfully Submitted, P.A. (Phil) Taylor Administrator Page 14 of 14 w^