FINANCE & INTERGOVERNMENTAL COMMITTEE AGENDA … · 9/5/2017  · City’s current Permissive Tax...

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FINANCE & INTERGOVERNMENTAL COMMITTEE AGENDA Special Meeting Tuesday, September 5, 2017 4:30 PM - Heritage Room 2580 Shaughnessy Street 1. CALL TO ORDER 2. ADOPTION OF THE AGENDA 2.1 Adoption of September 5, 2017 Finance and Intergovernmental Committee Meeting Agenda Recommendation: That the September 5, 2017 Finance and Intergovernmental Committee Meeting be adopted. 3. CONFIRMATION OF MINUTES 3.1 Minutes of July 25, 2017 Recommendation: That the Minutes of July 25, 2017 Finance and Intergovernmental Committee meeting be adopted. 4. DELEGATIONS 4.1 Legion Delegation 5. REPORTS 5.1 Royal Canadian Legion request for permissive exemption Recommendation: That FIG recommends to Council: That a one year (2018) property tax exemption be granted to the Royal Canadian Legion Branch #133. 5.2 Greater Vancouver Sewerage and Drainage District - Fraser sewerage area development cost charges proposed increases. 6. CORRESPONDENCE 6.1 Greater Vancouver Gateway 2030 - Expression of Interest Submissions 7. RESOLUTION TO CLOSE 7.1 Resolution to Close the Finance and Intergovernmental Committee 1

Transcript of FINANCE & INTERGOVERNMENTAL COMMITTEE AGENDA … · 9/5/2017  · City’s current Permissive Tax...

Page 1: FINANCE & INTERGOVERNMENTAL COMMITTEE AGENDA … · 9/5/2017  · City’s current Permissive Tax Exemption Policy #7.02.03 (Attachment 2) or other applicable legislation. The Legion

FINANCE & INTERGOVERNMENTAL COMMITTEEAGENDA

Special MeetingTuesday, September 5, 2017

4:30 PM - Heritage Room2580 Shaughnessy Street

1. CALL TO ORDER

2. ADOPTION OF THE AGENDA

2.1 Adoption of September 5, 2017 Finance and IntergovernmentalCommittee Meeting AgendaRecommendation: That the September 5, 2017 Finance andIntergovernmental Committee Meeting be adopted.

3. CONFIRMATION OF MINUTES

3.1 Minutes of July 25, 2017Recommendation: That the Minutes of July 25, 2017 Finance andIntergovernmental Committee meeting be adopted.

4. DELEGATIONS

4.1 Legion Delegation

5. REPORTS

5.1 Royal Canadian Legion request for permissive exemptionRecommendation: That FIG recommends to Council:That a one year (2018) property tax exemption be granted to the RoyalCanadian Legion Branch #133.

5.2 Greater Vancouver Sewerage and Drainage District - Fraser seweragearea development cost charges proposed increases.

6. CORRESPONDENCE

6.1 Greater Vancouver Gateway 2030 - Expression of Interest Submissions

7. RESOLUTION TO CLOSE

7.1 Resolution to Close the Finance and Intergovernmental Committee1

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Meeting of September 5, 2017Recommendation: That the Finance and Intergovernmental CommitteeMeeting be closed to the public under the following subsection of section 90(1)

k) negotiations and related discussions respecting the proposed provisionof a municipal service that are at their preliminary stages and that, in the viewof council, could reasonably be expected to harm the interests of themunicipality if they were held in public;

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Minutes of the Meeting of the Finance & Intergovernmental Committee

Held on July 25, 2017

FINANCE & INTERGOVERNMENTAL

COMMITTEE MINUTES OF

TUESDAY, JULY 25, 2017

To review all matters referred to the Committee that are related to the

overall administration of the City including human resources, the City's

finances including audit, and other government organizations.

A meeting of the Finance & Intergovernmental Committee of the Corporation of the City of Port Coquitlam

was held in the Heritage Room, City Hall, 2580 Shaughnessy Street, Port Coquitlam, on July 25, 2017 at 8:13

pm.

PRESENT:

Mayor Greg Moore

Councillor Laura Dupont

Councillor Michael Forrest

Councillor Glenn Pollock

Councillor Dean Washington

Councillor Brad West

STAFF REPRESENTATIVES:

John Leeburn, Chief Administrative Officer

Lori Bowie, Director of Recreation

Karen Grommada, Director of Finance

Gabryel Joseph, Manager of Corporate Office

Robert Kipps, Deputy Chief

Jennifer Little, Manager of Planning

Kristen Meersman, Director of Engineering and Public Works

Pardeep Purewal, Manager of Communication and Administrative Services

Steve Traviss, Director of Human Resources

Robin Wishart, Director of Corporate Support

Farouk Zaba, Manager of Financial Planning & Systems

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Minutes of the Meeting of the Finance & Intergovernmental Committee

Held on July 25, 2017

1. ADOPTION OF THE AGENDA

1.1 It was moved and seconded:

That the Agenda of the July 25, 2017 Finance and Intergovernmental Committee meeting be

adopted.

Carried

2. ADOPTION OF MINUTES

2.1 It was moved and seconded:

That the Minutes of the July 18, 2017 Finance and Intergovernmental Committee meeting be

adopted as circulated.

Carried

3. REPORTS

3.1 June Monthly Report

A discussion on the June Monthly Community Recreation Complex.

4. ADJOURNMENT

4.1 It was moved and seconded:

That the Finance and Intergovernmental Committee Meeting of July 25, 2017 be adjourned at

8:22pm.

Carried

________________________________ ____________________________________

Mayor Greg Moore Karen Grommada

Chair Director of Finance

The official Minutes of the July 25, 2017 Finance & Intergovernmental Committee Meeting are not read and adopted until certified correct by the Committee

Chairperson.

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Report to FIG

DATE:

August 22, 2017

TO:

Mayor & Councillors

FROM:

Brian North, Manager of Revenue and Collections

SUBJECT:

ROYAL CANADIAN LEGION REQUEST FOR PERMISSIVE EXEMPTION

EXECUTIVE SUMMARY: The Royal Canadian Legion Branch #133 (Legion) has submitted an application (Attachment 1) for an extension of the permissive exemption for another three years to allow the Legion to continue to improve its financial viability. Since being granted a three year permissive exemption in 2014 the Legion has implemented a new management model that has reduced its monthly operating costs. While the Legion has made significant progress on improving its financial performance to where they had a profit in 2016, the Legion would have had an operating loss if the $75,000 in property taxes had not been exempted. The provision of a one year extension would give the city the most flexibility in assessing the Legion’s future financial viability and provide an annual review of the Legion’s need for financial aid. RECOMMENDATION: That FIG recommends to Council: That a one year (2018) property tax exemption be granted to the Royal Canadian Legion Branch #133. BACKGROUND: The Legion has requested financial assistance from the City on a number of occasions. On February 4, 2003, the Legion’s request for tax exemption was denied based upon B.C. Assessment advising that the Local Government Act did not enable Council to exempt Legion properties. At this time two other possibilities for assistance were looked at: Legion requesting removal from the Port Coquitlam Business Improvement Association, to exempt them from that levy, or not charging for the parking. Neither of these options was approved by Council. In January 2006, the Legion requested financial assistance to assist in unanticipated costs related to the time it was taking to redevelop its site. At this time a number of assistance options were considered. Although there was considerable concern from staff about the viability of the project a one-time cash grant of $30,000 was awarded to the Legion. The intent of the grant was to cover the hall rental income lost by the Legion due to longer than expected project timelines.

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July 20, 2017 Royal Canadian Legion Request for Permissive Exemption Page 2

On April 2, 2008, the Legion was given a grant for $21,803 to be applied against Water and Sewer fees in recognition of delays in construction of the housing project. On April 18, 2011, the Legion’s request for a permissive tax exemption was denied. In October, 2011, the request for financial assistance was again considered, but denied pending further analysis of the Legion’s plans to achieve future operational and financial viability. In October, 2014 Council approved a three year property tax exemption for 2015 to 2017 to alleviate some of the Legion’s financial pressures and provide them with some time to implement their business plan. Property tax exemptions only apply to property taxes and do not apply to user fees like water, sewer or garbage fees. In addition to the relief from city taxes, the properties also receive tax relief from the other taxing authorities. The total exemptions provided to the Royal Canadian Legion were :

Note: The Legion’s Permissive Exemption was lower in 2017 due to the fact that the Legion’s assessment increase was much lower than average. For example the residential assessment increase for the Legion was 9.9% versus the average for all residential property was 33.75%.

COMMENTS AND ANALYSIS: Applicable Guidance / Legislation Attachment 3 to this report provides a listing of all entities for which the city currently provides a tax exemption. All properties listed in the attachment have obtained a permissive tax exemption through the City’s current Permissive Tax Exemption Policy #7.02.03 (Attachment 2) or other applicable legislation. The Legion operates as a non-profit organization and while it is eligible for a permissive tax exemption under the Community Charter, it does not qualify for a permissive tax exemption under the City’s current policy because the policy limits exemptions to places of worship, occupiers of City property, institutions of learning, exemption in lieu of a grant under a grant program. (Attachment 2 Permissive Property Tax Exemption Policy #7.02.03 points 1 to 6) Should Council continue to grant the Legion a permissive tax exemption, this would be an exception to the current policy and may set a precedent for future applications that would otherwise not qualify. As

Tax Levy 2015 2016 2017

City of Port Coquitlam 48,467.08$ 48,396.76$ 44,079.80$

School Tax 21,547.62 20,936.90 18,704.58

Metro Vancouver 637.38 628.09 636.14

Translink 4,230.23 4,055.86 3,552.55

BC Assessment 690.39 673.35 599.86

Municipal Finance Authority 2.24 2.38 2.57

Total 75,574.94$ 74,693.34$ 67,575.50$

Royal Canadian Legion 2015 to 2017 Property Taxes Exempted

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July 20, 2017 Royal Canadian Legion Request for Permissive Exemption Page 3

such, it is important to establish a framework to ensure consistency in the application of policy exemptions. The purpose of the City’s permissive exemption policy is to:

Optimize the provision of charitable and not for profit services for the benefit of Port Coquitlam residents.

Provide property tax exemptions as permitted under the Community Charter in a consistent and fair manner.

Restrict provision of exemption to those providing an extension to city services

Reduce impact to city revenues

While non-profit organizations are excluded from the scope of the current policy, the policy objectives can still be applied to assess applications that are exempt from the policy. The City’s permissive exemption policy outlines five guidelines to evaluate applications. These guidelines can also be used to assess applications that are exempt from the policy.

Guideline 1 - Consistency with municipal policies, plans, bylaws and regulations: For an applicant to be considered for a permissive exemption, they must be in compliance with all City bylaws, policies, etc. Staff has confirmed that the Legion is in compliance with all City policies, plans, bylaws and regulations.

Guideline 2 - Non-profit with evidence of financial need: Applicants need to demonstrate that their operations are consistent with those of a non-profit organization and that the organization is experiencing financial hardship. All of the Legion’s operations qualify as non-profit including the residential-housing, business-lounge, non-profit-hall). Furthermore, the Legion’s financial statements demonstrate history of operating at a loss suggesting that the organization is experiencing financial hardship. While a small profit of $27,305 was generated in 2016 it would not have covered the $75,000 in property taxes that were exempted. Also in the coming years additional funds will be needed to fund the replacement of items such as carpets, painting and appliance repairs that have been deferred in previous years where the operations were producing a loss. Guideline 3: Complementary extensions to city services and programs The Legion is providing a complementary extension to city services and programs through their veteran and senior services, youth activities, community service support and provision of seniors’ housing. A number of support letters were provided.

Guideline 4 - Principal property use: The property being exempted needs to be used to provide the services contemplated under Guideline 3. The property is being used exclusively for the provision of these services. Guideline 5 - Beneficial and accessible to Port Coquitlam residents:

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July 20, 2017 Royal Canadian Legion Request for Permissive Exemption Page 4

Port Coquitlam residents must be primary beneficiaries of the organization’s services. The services provided on the property must be accessible to the public. Although membership to Legion is required to access its services, there are no restrictions on who can apply for membership and the fee is not cost prohibitive. Therefore the services provided are accessible and of benefit to Port Coquitlam residents.

Based on the above methodology, the Legion satisfies all the necessary criteria to be eligible for consideration of an exemption, and if not for the scope limitation of the policy, would qualify for a permissive exemption. Although this type of property is not included in the Policy’s scope, should the Policy’s guidelines for assessing permissive exemptions be applied the Legion would meet the guidelines. Other Considerations Ability to meet policy objectives In 2014 as a result of City’s concerns, the Legion implemented a three year business plan to optimize its management and operations for sustainability and future growth. This business plan was part of a series of activities that the Legion undertook as it worked to build a stronger business foundation. The Legion hired a new general manager who specializes in seniors' residences, and has commissioned business management expertise and legal guidance, specializing in the realignment of non-profit organizations, to assist the Legion in moving forward with the implementation of its plan. Also it obtained funding for a number of its housing units from Fraser Health and moved to an Assisted Living model in its provision of housing services. The general manager has managed to increase the number of units rented out for the RJ Kent housing operation where in 2016 there was a significant improvement in income to a profit of $83,913 from a loss of $128,828 in 2015(see attachment 5 and 6, 2015 and 2016 Financial Statements for more details). Tax Exemption Practices in Neighbouring Municipalities The tax exemption practice for Metro Vancouver cities varies from providing a full exemption to the Legion to not providing an exemption at all. Details are provided in Attachment 4. Financial Implications Direct Impact of Exemption The total impact on city taxation revenue for 2017 was $44,080:

Assessment Class 2017 City Tax Relief

Class 1 - Residential $ 24,311.53 Class 6 - Business 14,551.69 Class 8 - Non-profit 5,216.58 Total $ 44,079.80

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July 20, 2017 Royal Canadian Legion Request for Permissive Exemption Page 5

In 2017 the Legion was charged $42,475.48 ($25.00 for the parcel tax on property taxes, $35,933.22 for Water and Sewer and $6,517.26 for parking. Potential Loss of Revenue as a Result of Other Permissive Exemption Applications

Within the scope of the principal services provided by the Legion (community care / assisted living residences / not for profit housing), the City could stand to lose ~ $350,000 of annual tax revenue should all eligible not-profit organizations providing similar services be granted a permissive tax exemption. OPTIONS AND IMPLICATIONS Option 1 – Deny application Denying the application would result in the least cost to the City (no financial impact) and would comply with the current policy. However, given the continued financial hardship being experienced by the Legion, there is a risk that they may not be able to sustain their services and go out of business. Option 2 – Provide a one year tax exemption and re-assess future applications on a case by case basis Providing a one year exemption would temporarily alleviate some of the financial pressures being faced by the Legion and provide them with some time to continue with implementing their business plan. This option limits the City’s loss of revenue to one year and also provides the most flexibility when entertaining future policy exemptions Option 3 – Provide a phased tax exemption over three years The Legion has requested a three year “grace period” to allow it to implement the many changes required to improve its financial situation. Providing a three year exemption that is gradually phased out (100% exemption year one, 66% exemption year two, 33% exemption year three) would provide longer term financial relief to the Legion which may assist with their long term planning. The reduced tax relief in years two and three may also motivate the Legion to most aggressively make the changes necessary for long-term financial stability. This option exposes the City to a longer period of financial loss than the recommended option. Option 4 – Provide the full tax exemption for all three years As noted above, the Legion has requested an extension to the current three year “grace period” to allow it to continue to implement the many changes required to improve its financial situation. Providing the full tax exemption for an additional three years gives the Legion the highest level of relief. As with option three above, this option exposes the City to a longer period of financial loss and also sets a precedent for length of exemption which reduces flexibility when entertaining future policy exemptions. Option 5 – Provide a partial tax exemption Providing a partial tax exemption on the non-business assessment only would provide some financial assistance to the Legion but not set a precedent for providing tax exemptions to businesses. However, given the financial hardship being experienced by the Legion, there is a risk that they may not be able to sustain their services and go out of business with the estimated exemption of $44,100 on their property.

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July 20, 2017 Royal Canadian Legion Request for Permissive Exemption Page 6

CONCLUSION:

While it does not comply with the current policy, granting a one year (2018) property tax exemption to the Legion meets with the overall policy objectives of:

Optimize the provision of charitable and not for profit services for the benefit of Port Coquitlamresidents.

Provide property tax exemptions as permitted under the Community Charter in a consistent andfair manner.

Restrict provision of exemption to those providing an extension to city services

Reduce impact to city revenues

By limiting the period to one year, this allows the most flexibility in assessing future applications that are non-compliant and allows the Legion to continue to demonstrate its financial viability.

Approval of the recommendation will result in a tax exemption bylaw being prepared for Council consideration and notice of same will be posted under section 227 of the Community Charter. The City will report the amount of tax exemption in the Annual Report as outlined in the Community Charter.

Respectfully Submitted by,

_______________________________ Brian North, CPA, CMA Director of Finance

Attachments: 1. Royal Canadian Legion Branch 133 Application for Permissive Tax Exemption 2. Permissive Property Tax Exemption Policy #7.02.033. 2017 City of Port Coquitlam Tax Exemptions4. Royal Canadian Legion Exemptions by other cities.5. Royal Canadian Legion 2016 Financial Statements6. Royal Canadian Legion 2015 Financial Statements

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Attachment 1

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Attachment 2

POLICY MANUAL

Subject

Area: Finance - Taxation

Policy #

7.02.03

Policy Title: Permissive Property Tax Exemption

Authority: Legislative X Effective Date:

2008-09-18

Administrative

Review Date:

2015-01

Issued By: M. Smith

Director,

Corporate Services

Corporate Services

Finance Division

Issue Date:

Manner Issued:

2008-09-18

Email – BC

Assessment

Purpose:

The purpose of this policy is to

Optimize the provision of charitable and not for profit services for the benefit of Port

Coquitlam residents.

Provide property tax exemptions as permitted under the Community Charter in a

consistent and fair manner.

Restrict provision of exemption to those providing an extension to city services

Reduce impact to city revenues

Background:

Section 224 of the Community Charter allows Council to by bylaw, permissively exempt

property taxes to various charitable and not for profit properties:

- Land and improvements owned by the Regional District, another municipality or other

local authority;

- Land or improvements owned by a charitable, philanthropic or other not for profit

corporation, if the Council considers that land or improvements are used for a purpose

that is directly related to the purposes of that corporation;

- Land or improvements used for public worship, this is in addition to the building itself

and the land under the building that are exempt under section 220 of the Community

Charter; and

- Land used for a private school, this is in addition to the building itself and the land under

the building that are exempt under Section 220 of the Community Charter; and

- Land or improvements operated as a licensed community care facility or assisted living

residence under the Community Care and Assisted Living Act.

- Land and improvements owned by a public authority and occupied by another authority or

non-for-profit. 17

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Policy Title:

Permissive Property Tax Exemption Policy #

7.02.03 Page 2

In accordance with the legislation Council may exempt these properties for up to 10 years and the

bylaw may be renewed once the 10 years have expired. There is an exception for property used

for public worship and for private schools permitting Council to pass an ongoing tax exemption,

so that a permissive exemption can harmonize with the ongoing statutory tax exemption for

buildings set apart for public worship and private schools.

Section 225 provides Council with the authority to exempt eligible partnering, heritage, riparian,

cemetery or golf course property for any period set out in the exempting bylaw. An exemption

under this section would come as a result of an agreement that the City would have with the

property owner and the conditions upon which the exemption is granted. The agreement may

also include repayment provisions if specified conditions aren’t met.

Section 226 provides Council with the authority to make revitalization tax exemptions. Council

may designate a revitalization area, set objectives for the area and provide exemptions in the area

for property owners who construct new improvements or alter existing improvements.

Exemptions are limited to the increase in assessed values that are due to the new or altered

improvement and to a five-year period, with an option to extend this for a further five years.

Policy:

The city further limits the exemptions possible through the Community Charter to the following

properties:

1. 100% property tax exemption for not-for-profit occupiers of City property for the

duration of their occupancy. The bylaw exempting these occupiers shall be for a term

of no more than 10 years, the maximum permissible under the Community Charter. The

bylaw may be renewed as required.

2. 100% ongoing property tax exemption for land and improvements surrounding a

statutorily exempt building for public worship.

3. 100% ongoing property tax exemption for land surrounding a statutorily exempt

building owned by an incorporated institution of learning (private school) that is

regularly giving children instruction accepted as equivalent to that given in a public

school,

4. 100% property tax exemption for properties on which a building for public worship or

private school is to be built. In order to qualify for exemption under this section the

owner must have applied for either a rezoning or a building permit by September 1st in

the year preceding the year of tax exemption. The bylaw exempting these properties

would be for the following two calendar years.

5. Full or partial property tax exemption for properties that are to be awarded a grant under

an existing City grant program and would qualify for property tax exemption under the

Community Charter. Property tax exemption would be provided instead of a cash grant

to the organization. The proportion of the property to be exempted will be determined

to provide the equivalent benefit of a cash grant to the organization. The bylaw

exempting these properties would be for a one-year period, unless otherwise awarded by

Council. 18

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Policy Title:

Permissive Property Tax Exemption Policy #

7.02.03 Page 3

6. 100% property tax exemption for not-for-profit occupiers of school premises. The

bylaw exempting these occupiers shall be for a term of no more than 10 years. The

maximum permissible under the Community Charter, the bylaw may be renewed as

required.

Penalty Provision:

Council will impose penalties on an exempted organization for knowingly breaching conditions

of exemption:

Revoking exemption with notice.

Requiring repayment of monies equal to the foregone tax revenue.

Disqualifying any future application for a specified time period.

Guidelines:

The intent of the permissive tax exemption guidelines are to:

Provide consistent and equal treatment and consideration for all applicants

Optimize the provision of charitable and not for profit services for the benefit of Port Coquitlam

residents

Allow for consideration of a wide diversity of organizations and evaluation of each application

on its own merits

To achieve the above goals, organizations wishing to have their properties considered for a permissive

tax exemption, must first qualify for an exemption under the provisions of the Community Charter.

Should a property meet these requirements, the next step is for the organization to apply for a

permissive exemption with the city. The application for a permissive tax exemption will be evaluated

according to these guidelines.

To be eligible, organizations must meet all the above requirements and comply with all of the

guidelines, for a permissive tax exemption. The application form and associated submissions form an

integral part of these guidelines. (Council may, at its discretion, reject any or all applicants in any

given year.)

Evaluations of applications will be based on each of the following guidelines.

1. Consistent with municipal policies, plans, bylaws and regulations

The use of the property must be consistent with and in support of all municipal legislation.

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Policy Title:

Permissive Property Tax Exemption Policy #

7.02.03 Page 4

The intent of this guideline is to make certain that the organization receiving a permissive

exemption is in compliance with municipal policies, plans, and bylaws and with any other

applicable regulations.

For example, it would be inappropriate to support an organization should the property use be

non-conforming to zoning, or to have an incompatible land use.

2. Non-profit

Tax exemption will not be granted for organizations that operate with a profit motive.

Evidence of financial need is required including financial statements demonstrating that lack

of tax exemption would impair the provision of services to the community or impose

significant hardship on users.

The intent of this guideline is to make certain that municipal support is not used to further the

activities of an individual or organization that, but for it’s not for profit status, would

otherwise be considered a business. In addition, the property receiving a permissive tax

exemption would not ordinarily be used for this purpose by an organization having equivalent

operations in the business community.

Applicants can demonstrate non-profit status by being a registered charitable institution or

society. Registered organizations must be able to demonstrate compliance with the Society

Act and provide evidence to corroborate compliance at a minimum through Canada Revenue

filing or other documentation as requested by the city.

3.Complementary extensions to city services and programs

Services provided by an organization should fulfill some basic need, or otherwise improve the

quality of life of Port Coquitlam residents.

The intent of this guideline is to make certain that support is provided for services that are

compatible with, or are complementary to, those offered by the city.

In determining the degree of compatibility of the applicant’s services, consideration will be

given to the services already offered with the city. City departments may determine whether

the service is needed or wanted by the residents of Port Coquitlam.

4. Principal property use

Permissive tax exemptions will be based on the principal use of the property, not on the non-

profit or charitable service of the organization.

The intent of this guideline is to limit the exemption of property that is used to generate

business revenue unrelated to the service provided by the organization. 20

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Policy Title:

Permissive Property Tax Exemption Policy #

7.02.03 Page 5

For example, rental revenue generated from a property owned by the applicant and not used

for the specific purposes of the organization would make the property ineligible for an

exemption.

5. Beneficial and accessible to Port Coquitlam residents

Port Coquitlam residents must be primary beneficiaries of the organization’s services. The

services provided on the property must be accessible to the public. Council may at its

discretion provide a partial exemption.

The intent of this guideline is to make certain that Port Coquitlam residents generally will

benefit from the municipal support provided, and will not be restricted from accessing the

services of the organization.

Responsibility:

The Director of Corporate Services is responsible for policy developments and updates.

The Corporate Officer will identify not-for-profit properties that are eligible for tax exemption

when leases for City property are negotiated.

The Corporate Officer will be responsible for reviewing Tax Exemption Bylaws prior to their

expiration.

The Corporate Officer will ensure the implementation of the policy and review individual

applications for tax exemption and make recommendations to Council.

Property owners of properties that would qualify for exemption under section 4 and 6 are

required to complete an application for tax exemption by September 1st in the year preceding the

year of tax exemption.

The Parks and Recreation Department and other departments as appropriate are responsible for

identifying properties that qualify under section 5 of the policy.

Council will consider applications for permissive tax exemptions annually using this policy and

guidelines. Applications maybe picked up at City Hall, downloaded from the web page or mailed

upon request. Evaluations of the applications will be based on the permissive tax exemption

guidelines attached to this policy.

Applications:

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Policy Title:

Permissive Property Tax Exemption Policy #

7.02.03 Page 6

All requests for permissive tax exemptions shall be directed to the Corporate Officer on or before

September 1st of each year, and shall be submitted on the Application for Permissive Tax

Exemption form.

Unless all required information is supplied or a suitable explanation offered as to why this

information cannot be supplied, the tax exemption application will not be considered.

END OF POLICY

Record of Amendments:

Policy Issue date Reviewed Replaced Re-issue Date

7.02 2004-09-28 2005-01-10 Yes – 7.02.01 2005-01-11

7.02.01 2005-01-11 2006-10-10 Yes – 7.02.02 2006-10-11

7.02.02 2006-10-11 2008-09-17 Yes – 7.02.03 2008-09-18

7.02.03 2008-09-18 2010-03 No

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Attachment 3

2017 PERMISSIVE PROPERTY TAX EXEMPTIONS

Name Tax relief

Port Coquitlam Heritage and Cultural Society $ 9,451

Hyde Creek Streamkeepers $ 10,397

Port Coquitlam Kinsmen Club $ 11,146

Victory Baptist Church $ 15,431

Southside Baptist Church $ 15,959

Tri-City Women's Centre $ 16,271

Coquitlam Chinese Evangelical Free Church $ 18,162

Pentecostal Assemblies of Canada $ 21,526

Port Coquitlam Seniors Housing $ 27,024

Hope Lutheran Church $ 28,088

Vancouver Bible Presbyterian Church $ 29,850

Northview Community Church $ 30,494

Tri-City Islamic Centre $ 31,810

Trustees of Trinity Congregation of the United Church of Canada $ 34,277

Fellowship Deaconry Association of British Columbia $ 35,828

Coquitlam Chinese Evangelical Bible Church $ 38,116

Royal Canadian Legion Port Coquitlam (British Columbia/Yukon Command No 133)$ 44,080

Hawthorne Care Centre $ 66,788

Foursquare Gosple Church of Canada $ 74,656

Archbishop Carney Roman Catholic Highschool $ 186,926

Our Lady of Assumption Roman Catholic Church and Elementary $ 211,383

Total $ 957,665

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Attachment 4

ROYAL CANADIAN LEGION July 2017 SURVEY OF PERMISSIVE TAX EXEMPTIONS:

CITY: All Partial

CLASS 1 Residential

CLASS 6 Business

CLASS 8 Non-Profit

Coquitlam X

X X X

Burnaby

X

X

Maple Ridge

X X

Surrey X

X

Langley City

X

X

Richmond

X X X

Vancouver X

X

West Vancouver X

X

Delta X

X X

Mission X

X

Abbotsford X

X

City of North Vancouver X

X

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Attachment 5

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Attachment 6

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Information Report to FIG

DATE:

August 22, 2017

TO:

Mayor & Councillors

FROM:

Karen Grommada, Director of Finance

SUBJECT:

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT – FRASER SEWERAGE AREA DEVELOPMENT COST CHARGES PROPOSED INCREASES

EXECUTIVE SUMMARY: Metro Vancouver’s Development Cost Charge (DCC) Program helps fund the expanding liquid waste infrastructure needed to support the region’s growing population. Metro Vancouver DCC rates have not been updated since their inception in 1997, despite the influx of significant development, the increasing need for the expansion of the liquid waste system and the increasing cost of infrastructure. As a result, Metro Vancouver initiated a DCC review process in 2014, with the expectation that the new DCC bylaw would be in place by the end of 2017 and implemented for April 1, 2018. The proposed changes focus on the principle that “growth pays for growth” and are based on the current financial model with growth projected over the next 30 years. The proposed changes also recognize that the four sewage areas (Vancouver, Lulu Island, North Shore and Fraser) each have a different cost profile as a result of population, growth rate, and prior infrastructure investments. The City of Port Coquitlam is included in the Fraser Sewerage Area which is anticipated to have an average GVS&DD DCC rate increase of 220% (for a new single family home, this means increasing the amount to be paid by $3,697 to the new charge of $5,428). PURPOSE: The purpose of this report is to provide information to the Finance and Intergovernmental Committee on the proposed increases to Greater Vancouver Sewerage and Drainage District (GVS&DD) DCCs by Metro Vancouver. BACKGROUND: The imposition and collection of DCCs by Metro Vancouver is permitted under Section 58.2 of the Greater Vancouver Sewerage and Drainage District Act. In January 1997, a DCC program was implemented by Metro Vancouver in the liquid waste function of the GVS&DD. Unlike other Metro Vancouver functions where costs are recovered equitably across the lower mainland, the liquid waste function recovers costs separately from the member municipalities located in the four geographically defined areas shown on the map in Attachment 1, based on each area’s unique infrastructure needs (the villages of Anmore, Belcarra, and Lions Bay are not GVS&DD members). The four sewerage area and the municipalities primarily serviced are:

Vancouver Sewerage Area (Vancouver, Electoral Area A – UBC);

Lulu Island Sewerage Area (Richmond, Tsawwassen First Nation);

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August 22, 2017 GVS&DD – Fraser Sewerage Area DCC Proposed Increases Page 2

North Shore Sewerage Area (North Vancouver City, North Vancouver District, West Vancouver); and

Fraser Sewerage Area (Port Moody, Port Coquitlam, Coquitlam, Burnaby, New Westminster, Delta, Surrey, White Rock, City of Langley, Township of Langley, Pitt Meadows, Maple Ridge).

Metro Vancouver has adopted bylaws that define the services, infrastructure, and financing terms for each sewerage area. The bylaws include definitions of expenditure types, as well as complex rate formulas and calculations that apportion growth and non-growth related costs (see Attachment 2). Costs for Liquid Waste are delineated between Tier 1 costs (Operation and Maintenance, and non-treatment capital costs) and Tier 2 costs (capital treatment costs). Tier 1 costs are borne entirely by the individual sewerage area, while Tier 2 costs are borne 30% by the individual sewerage area, with the remaining 70% borne by all four sewerage areas. DCCs collected in individual sewerage areas are used to assist in funding defined growth capital costs in expanding the systems solely in those areas (less any available senior government grants). The DCC program implemented by Metro Vancouver has the same purpose as the DCC programs administered by the municipalities, which is to ensure that new development assists in funding the infrastructure costs required to service them. While the policy aspects of the program are consistent across the liquid waste function, each sewerage area has a separate unique fee structure based on the anticipated growth and infrastructure requirements of that sewerage area. The DCCs levied by Metro Vancouver on lower mainland developments assist the regional district in paying for regional costs for new liquid waste infrastructure, such as additional trunk lines, pumping stations, and wastewater treatment plant expansions. The Province sets out guidelines for the development of DCC rates. The DCC rate established by Metro Vancouver is based on a 1% assist factor to development, the lowest allowable by the Province. This means that development pays for 99% of infrastructure costs related to growth. At the inception of the program in 1997, DCC rates were set based on the development plans of member municipalities and the necessary infrastructure expansion required to service those developments. The DCC rates have not been updated since inception despite the influx of significant development that has driven the need for system expansions, which in turn has driven the need for funding adjustments. In 2014, Metro Vancouver commenced a review of the future infrastructure needs of each of the sewerage areas and the corresponding DCC rates required to finance the capital requirements. Metro Vancouver staff presented their findings and recommendations in a report to the Metro Vancouver Utilities Committee, the oversight body for the Liquid Waste function, at the Committee’s meeting on November 10, 2016 (Attachment 3). The Utilities Committee considered the proposed increases to the regional DCCs at the meeting and forwarded the new rates for comment to the Metro Vancouver Intergovernment and Finance Committee, and the development community (e.g. Urban Development Institute – UDI). Further consultations and ministerial approvals are planned, including consultation dialogues for the Fraser Sewerage Area scheduled for Thursday, September 21, 2017 at the Sheraton Vancouver Guildford Hotel in Surrey and Monday, October 2, 2017 at the Anvil Centre in New Westminster. The regional DCCs are collected in conjunction with other fees at the time of subdivision approval or building permit issuance where additional lots, units, and/or square footage is created. Exemptions include:

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August 22, 2017 GVS&DD – Fraser Sewerage Area DCC Proposed Increases Page 3

a development of fewer than four new dwelling units;

a development that cannot be serviced by, or will not impose new capital costs on GVSⅅ

a development where a DCC has been previously paid (no new capital cost imposed);

exemptions under Section 220(1)(h) of Community Charter (i.e., place of worship);

a dwelling unit that is less than 29 square metres (312.153 sq. ft.) per Metro Vancouver policy; and

improvements with a building permit value less than $50,000.

The regional DCCs have been collected by the City on behalf of Metro Vancouver since January 1997, and remitted to Metro Vancouver on a semi-annual basis. Metro Vancouver deposits the DCCs in reserves for funding planned capital infrastructure projects in the areas from which the DCCs were collected. COMMENTS AND ANALYSIS: The Fraser Sewage Area (FSA) is the largest of the four sewerage areas, serving 12 municipalities as noted above. The FSA is served by two sewerage treatment plants, one located on Annacis Island in Delta and the other in the Township of Langley. Intuitively, one would expect the larger municipalities to pay more for the capital costs of sewerage treatment infrastructure similar to other agreements where service costs are shared between municipalities. Typically, shared services are allocated to each municipality in a partnership based on their proportional share of population or some other percentage-based metric. For DCCs, each development is treated the same in that sewerage area and charged the same rate regardless of the size of the jurisdiction in which it resides. Metro Vancouver staff anticipate that DCCs will need to increase by an average of 218% for the FSA (270% if interest is included) to adequately fund the required infrastructure (see Attachment 3) which because of significant growth development the extension of trunk lines, new pump stations, new interceptors, as well as river crossing will be required. The matrix below shows the impact the proposed GVS&DD DCCs could have to the average house type (30 year projections not including interest):

Fraser Sewerage Area

Land Use DCC

Proposed DCC

Existing $ increase % increase Units of Charge

Single Family Residential $5,428 $1,731 $3,697 214% per dwelling unit

Townhouse $4,695 $1,515 $3,180 210% per dwelling unit

Apartment $3,531 $1,082 $2,449 226% per dwelling unit

Non Residential $2.67 $0.81 $1.86 229% per ft2 of floor area

For comparison purposes the proposed rates for the other areas are presented below. The rate increases are significantly less for these areas because the majority of their Tier 1 infrastructure (trunk sewer lines, force mains, interceptors, pump stations) is generally well established and sufficient to meet most growth needs. The bulk of redevelopment reflects infill projects that add capacity but do not trigger significant trunk upgrades.

Vancouver Sewerage Area

Land Use DCC

Proposed DCC

Existing $ increase % increase Units of Charge

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August 22, 2017 GVS&DD – Fraser Sewerage Area DCC Proposed Increases Page 4

Single Family Residential $1,811 $944 $867 92% per dwelling unit

Townhouse $1,618 $826 $792 96% per dwelling unit

Apartment $1,072 $590 $482 82% per dwelling unit

Non Residential $0.93 $0.44 $0.49 111% per ft2 of floor area

North Shore Sewerage Area

Land Use DCC

Proposed DCC

Existing $ increase % increase Units of Charge

Single Family Residential $2,300 $1,291 $1,009 78% per dwelling unit

Townhouse $2,076 $1,129 $947 84% per dwelling unit

Apartment $1,416 $807 $609 75% per dwelling unit

Non Residential $1.20 $0.61 $0.59 97% per ft2 of floor area

Lulu Island Sewerage Area

Land Use DCC

Proposed DCC

Existing $ increase % increase Units of Charge

Single Family Residential $2,214 $1,077 $1,137 106% per dwelling unit

Townhouse $1,915 $942 $973 103% per dwelling unit

Apartment $1,388 $673 $715 106% per dwelling unit

Non Residential $1.05 $0.51 $0.54 106% per ft2 of floor area

CONCLUSION: Dialogues on the proposed rates for the Fraser Sewerage Area are scheduled for Thursday, September 21, 2017 at the Sheraton Vancouver Guildford Hotel in Surrey and Monday, October 2, 2017 at the Anvil Centre in New Westminster. Revisions to the rates may be made following the consultation. At this time the effective date is expected to be April 1, 2018.

Respectfully Submitted by,

_______________________________ Karen Grommada, CPA, CMA Director of Finance Attachment 1 : GVS&DD sewerage areas map Attachment 2 : GVS&DD bylaw related to the liquid waste function of Metro Vancouver Attachment 3 : July 10, 2017 GVS&DD DCC Program Review Update report to Metro Vancouver Performance and Audit Committee

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Attachment 1

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THIS IS A CONSOLIDATION, FOR REFERENCE PURPOSES, OF:

“Greater Vancouver Sewerage and Drainage District Development Cost Charge Bylaw No.

254, 2010” (Adopted April 23, 2010)

“Greater Vancouver Sewerage and Drainage District Development Cost Charge Amending

Bylaw No. 286, 2014” (Adopted November 28, 2014)

“Greater Vancouver Sewerage and Drainage District Development Cost Charge Amending

Bylaw No. 292, 2015” (Adopted November 27, 2015)

As of November 28, 2014

COPIES OF THE ORIGINAL BYLAWS MAY BE INSPECTED AT

BOARD AND INFORMATION SERVICES

METRO VANCOUVER

DEVELOPMENT

COST CHARGE (DCC)CONSOLIDATED

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Attachment 2

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 1 of 17

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT

DEVELOPMENT COST CHARGE BYLAW NO. 254, 2010

WHEREAS:

A. Pursuant to the Greater Vancouver Sewerage and Drainage District Act, the Greater

Vancouver Sewerage and Drainage District (“the GVS&DD”) may, by bylaw, impose

development cost charges on every person who obtains approval of a subdivision or a

building permit authorizing the construction, alteration or extension of a building or

structure from a Member Municipality;

B. Development cost charges provide funds to assist the GVS&DD in paying capital costs

incurred to provide, construct, alter or expand sewerage facilities to service development

within the area of the GVS&DD, excluding the portion of capital costs charged by the

GVS&DD to Member Municipalities under section 54 of the Act;

C. Pursuant to the Act, development cost charges are not payable in certain circumstance and

the GVS&DD may waive or reduce development cost charges for eligible developments;

D. Member Municipalities collect the development cost charges imposed under this Bylaw and

remit them to the GVSⅅ

E. The GVS&DD and a Member Municipality may enter into an agreement under section 58.3

of the Act under which all, some or some portion of the development cost charges under

this Bylaw that would otherwise apply are not required to be collected and remitted by the

Member Municipality and the Member Municipality agrees to pay to the GVS&DD an

amount equal to the development cost charges that the Member Municipality would have

collected under this Bylaw but for such an agreement; and

F. In setting development cost charges under this Bylaw, the GVS&DD has considered:

a. future land use patterns and development and the phasing of works and services;

and

b. how development designed to result in a low environmental impact may affect the

capital costs of infrastructure referred to in section 58.2(2) of the Act.

NOW THEREFORE the Board of the Greater Vancouver Sewerage and Drainage District in

open meeting assembled enacts as follows:

1.0 REPEAL OF BYLAW

1.1 Greater Vancouver Sewerage and Drainage District Development Cost Charge Bylaw No.

187, 1996 is hereby repealed.

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 2 of 17

2.0 CITATION

2.1 The official citation for this Bylaw is “Greater Vancouver Sewerage and Drainage District

Development Cost Charge Bylaw No. 254, 2010”.

2.2 This Bylaw may be cited as the “Development Cost Charge Bylaw”.

3.0 INTERPRETATION

3.1 Definitions. In this Bylaw:

(a) “Apartment Dwelling Unit” means a Dwelling Unit in a building or structure that

consists or may consist of two or more storeys and contains or may contain four or

more Dwelling Units, whereby the building or structure has a principal exterior

entrance used in common for access to the Dwelling Units. Apartment Dwelling Unit

does not include Dwelling Units that are Townhouse Dwelling Units;

(b) “Building Permit” means any permit required by a Member Municipality that

authorizes the construction, alteration or extension of a building or structure;

(c) “Combination Development” means any Development that comprises two or more

of the following uses:

(i) Apartment Dwelling Unit;

(ii) Residential Dwelling Unit;

(iii) Townhouse Dwelling Unit; and

(iv) Non Residential Use;

(d) “Community Charter” means the Community Charter, SBC 2003, c. 26;

(e) “Development” means:

(i) a Subdivision; or

(ii) the construction, alteration or extension of a building or structure for

which a Building Permit is obtained;

(f) “Dwelling Unit” means one or more rooms comprising a self contained unit that is

used or intended to be used for living and sleeping purposes and for which are

Amended by

Bylaw 286,

2014

Replaced by

Bylaw 286,

2014

Added by

Bylaw 286,

2014

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 3 of 17

provided cooking facilities, or the facilities for installation of cooking facilities, and

one or more bathrooms having a sink or wash basin, a water closet, and a shower or

bath;

(g) “Effective Date” means the date this bylaw comes into force and takes effect;

(h) “Floor Area” means:

(i) the floor area of the building or structure (measured from the outside

edge of all exterior walls of the building or structure), less the number of

square feet of the floor area of the building or structure that is used or is

intended to be used for the parking of motor vehicles and the storage of

bicycles; or

(ii) in the case of an alteration or extension of less than the entire building

or structure, the portion of the building or structure to which the

Building Permit applies (measured from the outside edge of any exterior

walls in such portion of the building or structure), less the number of

square feet of the floor area of the building or structure that is used or is

intended to be used for the parking of motor vehicles and the storage of

bicycles;

(i) “For Profit Affordable Rental Housing” means Dwelling Units in a Development

comprising Residential Use or Combination Development that will be rented or

sublet;

(i) at below market rental rates so that the Rent charged does not exceed

the lesser of:

(1) 80% of the average market rent for the Member

Municipality where the Dwelling Unit is located; or

(2) 80% of the average market rent for all of the Member

Municipalities

as identified or reported in Canada Mortgage Housing Corporation’s

most recent rental market survey;

(ii) to persons who have an annual household income that falls:

(1) at or below 80% of the Median Household Income if the

Dwelling Unit has 3 or more bedrooms;

(2) at or below 70% of the Median Household Income if the

Dwelling Unit has 2 bedrooms;

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 4 of 17

(3) at or below 60% of the Median Household Income if the

Dwelling Unit has 1 bedroom;

(4) at or below 50% of the Median Household Income if the

Dwelling Unit is a bachelor suite.

(j) “Fraser Sewerage Area” means the area established from time to time by the

GVS&DD under the Act as the Fraser Sewerage Area;

(k) “GVS&DD” means the Greater Vancouver Sewerage and Drainage District;

(l) “Greater Vancouver Sewerage and Drainage District Act” or “Act” means the

Greater Vancouver Sewerage and Drainage District Act, SBC 1956, c. 59;

(m) “Land Title Act” means the Land Title Act, RSBC 1996, c.250;

"Laneway House" has the definition ascribed to such term in the bylaws of the

Member Municipality where the laneway house is located, or, in the absence of

such a definition, means a detached building or structure containing one Dwelling

Unit and constructed in the yard of a site on which is situate a Single Family

Residential Dwelling;

(n) “Local Government Act” means the Local Government Act, RSBC 1996, c. 323;

(o) “Lulu Island West Sewerage Area” means the area established from time to time by

the GVS&DD under the Act as the Lulu Island West Sewerage Area;

(p) “Median Household Income” means the median household income for the Greater

Vancouver Regional District or Vancouver Census Metropolitan Area as reported by

Statistics Canada in its most recent census;

(q) “Member Municipality” means a municipality that is a member of the GVSⅅ

(r) “Minister” means the member of the Executive Council appointed under the

Constitution Act charged by order of the Lieutenant Governor in Council with the

administration of the Local Government Act;

(s) “Municipal Charges” means development cost charges imposed by a Member

Municipality under either the Local Government Act, Community Charter or the

Vancouver Charter;

(t) “Not For Profit Rental Housing” means those Dwelling Units in a Development

comprising a Residential Use or Combination Development that are or will be:

Added by

Bylaw 292,

2015

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 5 of 17

(i) operated as rental housing for tenants who meet eligibility criteria

related to income, number of occupants, health or other similar criteria;

and

(ii) owned, leased or otherwise held by a Public Housing Body;

but does not include:

(iii) a community care facility under the Community Care and Assisted Living

Act, SBC 2002, c. 75;

(iv) a continuing care facility under the Continuing Care Act, RSBC 1996, c.

70;

(v) a public or private hospital under the Hospital Act, RSBC 1996, c. 200;

(vi) a Provincial mental health facility, an observation unit or a psychiatric

unit designated under theMental Health Act, RSBC 1996, c. 288; or

(vii) a housing based health facility that provides hospitality support services

and personal health care;

(u) “Non Residential Use” means any building or structure or any portion of any

building or structure that is not Apartment Dwelling Unit, Residential Dwelling Unit

or Townhouse Dwelling Unity but for greater certainty, does not include any portion

of any Residential Use building or structure that is not part of a Dwelling Unit and is

used or is intended to be used solely for the purpose of gaining access to and from

Dwelling Units, solely for the maintenance of the building or structure or solely by

the occupants of the Dwelling Units in the building or structure;

(v) “North Shore Sewerage Area” means the area established from time to time by the

GVS&DD under the Act as the North Shore Sewerage Area;

(w) “Parcel” means any lot, block or other area in which land is held or into which it is

legally subdivided and for greater certainty, without limiting the foregoing, including

a strata lot under the Strata Property Act;

(x) “Public Housing Body” means the British Columbia Housing Management

Commission, the Canada Mortgage and Housing Corporation, the City of Vancouver,

the City of Vancouver Public Housing Corporation, the Metro Vancouver Housing

Corporation, any housing society or not for profit municipal housing corporation

that has an agreement regarding the operation of residential property with:

(i) the government of British Columbia;

(ii) the British Columbia Housing Management Commission;

Amended by

Bylaw 286,

2014

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 6 of 17

(iii) the Canada Mortgage and Housing Corporation;

(y) “Rate Schedules” means the schedules of development cost charge rates for each

Sewerage Area that are attached as Schedules A, B, C and D to this Bylaw;

(z) “Rent” means money paid or agreed to be paid, or value or a right given or agreed

to be given, by or on behalf of a tenant to a landlord in return for the right to rent a

Dwelling Unit, for the use of common areas and for services or facilities and includes

any and all strata fees, regardless of whether such fees are paid directly to the

landlord, but does not include any of the following:

(i) a security deposit;

(ii) a pet damage deposit;

(iii) a fee prescribed under section 97 (2) (k) of the Residential Tenancy Act;

(aa) “Residential Tenancy Act” means the Residential Tenancy Act, SBC 2002, c. 78;

(bb) “Residential Use” means Apartment Dwelling Unit, Residential Dwelling Unit,

Townhouse Dwelling Unit and Townhouse Residential Use;

(cc) “Residential Dwelling Unit” means a Dwelling Unit in a building or structure that

contains or may contain up to three Dwelling Units;

"Secondary Suite" has the definition ascribed to such term in the bylaws of the

Member Municipality where the secondary suite is located, or, in the absence of

such a definition, means the smaller Dwelling Unit contained within a Single Family

Residential Dwelling;

(dd) “Sewerage Area” means any of the GVS&DD’s four sewerage areas, being the

Vancouver Sewerage Area, the North Shore Sewerage Area, the Lulu Island West

Sewerage Area and the Fraser Sewerage Area;

(ee) “Sewage Facility” means any work, service or plant of the GVS&DD for conveying,

disposing of or treating sewage or waste water;

"Single Family Residential Dwelling" means a detached building or structure that

contains one principal Dwelling Unit and may contain one smaller Dwelling Unit;

(ff) “Strata Property Act” means the Strata Property Act, SBC 1998, c. 43;

(gg) “Subdivision” includes a division of land into two or more Parcels, whether by plan,

apt descriptive words or otherwise under the Land Title Act or the Strata Property

Act, the consolidation of two or more Parcels of land, and phased strata plans;

Added by

Bylaw 286,

2014

Replaced by

Bylaw 286,

2014

Added by

Bylaw 292,

2015

Added by

Bylaw 292,

2015

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 7 of 17

(hh) “Townhouse Dwelling Unit” means a Dwelling Unit in a building or structure that

contains or may contain four or more Dwelling Units, whereby each Dwelling Unit

has a direct exterior entrance;

(ii) “Vancouver Charter” means the Vancouver Charter, SBC 1953, c. 55;

(jj) “Vancouver Sewerage Area” means the area established from time to time by the

GVS&DD under the Act as the Vancouver Sewerage Area;

4.0 DEVELOPMENT COST CHARGES

4.1 Application of Development Cost Charges. Subject to sections 4.2 and 4.3, every person

who obtains:

(a) approval of a Subdivision from a Member Municipality; or

(b) a Building Permit from a Member Municipality;

must pay the applicable development cost charges set out in this Bylaw to that Member

Municipality on behalf of the GVS&DD prior to the approval of the Subdivision or the

issuance of the Building Permit.

4.1.1 No Exemption. Without limiting the generality of section 4.1, a Building Permit in section

4.1(b) includes a permit authorizing the construction, alteration or extension of any building

or structure that will, after the construction, alteration, or extension, contain one or more

Dwelling Units and be put to no other use than the Residential Use in those Dwelling Units.

4.1.2 Secondary Suites. Notwithstanding anything to the contrary contained in this Bylaw,

development cost charges are not payable under this Bylaw for the construction, alteration

or extension of one Secondary Suite in a Single Family Residential Dwelling or for the

construction, alteration or extension of a Laneway House.

4.2 Exemptions from Development Cost Charges. Development cost charges are not payable

under this Bylaw if:

(a) the Development is not and will not be capable of being serviced by a Sewerage

Facility of the GVS&DD or by a Sewerage Facility of a Member Municipality that is

connected to a Sewerage Facility of the GVSⅅ

(b) the Development will not impose new capital cost burdens on the GVSⅅ

(c) 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 GVSⅅ

Added by

Bylaw 286,

2014

Added by

Bylaw 286,

2014

Added by

Bylaw 292,

2015

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 8 of 17

(d) the Building Permit authorizes the construction, alteration or extension of a building

or structure or part of a building or structure that is, or will be, after the

construction, alteration or extension, exempt from taxation under subsection

220(1)(h) of the Community Charter;

(e) deleted

(f) the value of the work authorized by the Building Permit does not exceed $50,000 or

such other amount which the Minister may prescribe by regulation; or

(g) the Building Permit authorizes the construction, alteration or extension of self

contained Dwelling Units in a building in which:

(i) each Dwelling Unit is no larger in area than 29 square metres [312.153

square feet]; and

(ii) each Dwelling Unit is to be put to no use other than Residential Use in

those Dwelling Units.

4.3 Waiver of Development Cost Charges. The GVS&DD will waive or refund to the applicable

Member Municipality on behalf of the registered owner, development cost charges that are

otherwise payable under this Bylaw for:

(a) Dwelling Units that meet the definition of For Profit Affordable Rental Housing if the

following conditions are satisfied before an occupancy permit is issued for them:

(i) occupancy of the Dwelling Units is subsequent to the Effective Date; and

(1) the owner covenants with the GVS&DD to use the

Dwelling Units as For Profit Affordable Rental Housing for

at least 20 years and the covenant is registered under

section 219 of the Land Title Act; or

(2) the owner, if the Development is subject to the Strata

Property Act, has filed a Rental Disclosure Statement

pursuant to section 139 of that Act that sets out a rental

period of at least 20 years and the owner covenants with

the GVS&DD to use the Dwelling Units as For Profit

Affordable Rental Housing for at least 20 years and the

covenant is registered under section 219 of the Land Title

Act; or

(3) the owner enters into a lease agreement with a Public

Housing Body pursuant to which the Public Housing Body

Deleted by

Bylaw 286,

2014

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 9 of 17

agrees to sublet and operate the Dwelling Units as Not

For Profit Rental Housing for at least 20 years;

(b) Dwelling Units that meet the definition of Not For Profit Rental Housing before an

occupancy permit is issued for them and whose occupancy is subsequent to the

Effective Date.

4.4 Calculation of Development Cost Charges. Development cost charges imposed under this

Bylaw will be calculated in accordance with the rates set out in the Rate Schedules. The

rates set out in the Rate Schedules may be different in relation to one or more of the

following:

(a) different Sewerage Areas;

(b) different classes of Sewerage Facilities;

(c) different areas within a Sewerage Area;

(d) different uses;

(e) different capital costs as they relate to different classes of Development; or

(f) different sizes or different numbers of lots or units in a Development.

4.5 Combination Development. Without restricting the generality of section 4.4, the

development cost charges for a Combination Development will be calculated separately for

the portion of the Combination Development attributable to each of Apartment Dwelling

Unit, Residential Dwelling Unit, Townhouse Dwelling Unit and Non Residential Use and will

be the sum of the development cost charges for each such use, calculated according to the

Rate Schedules.

4.6 Payment, Collection and Remittance of Development Cost Charges. Development cost

charges imposed under this Bylaw must be paid to the Member Municipality of the GVS&DD

approving the Subdivision or issuing the Building Permit, as the case may be, as follows:

(a) at the same time as any Municipal Charges as may be levied on the Development

under a bylaw of the Member Municipality are payable to the Member Municipality;

or

(b) if no Municipal Charges will be levied on the Development under a bylaw of the

Member Municipality, as follows:

Amended by

Bylaw 286,

2014

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 10 of 17

(i) where an application is made only for Subdivision, prior to the issuance

of the approval of the Subdivision by the Member Municipality; or

(ii) where an application is made only for a Building Permit or for both

Subdivision and for a Building Permit, prior to the issuance of the

Building Permit by the Member Municipality.

4.7 Payment of Development Cost Charges by Instalments. The development cost charges

imposed under this Bylaw may not be paid by instalments unless a regulation under either

subsection 58.2(6) of the Act or subsection 933(6) of the Local Government Act applies to

the Development and authorizes the payment of development cost charges in instalments.

5.0 COLLECTION AND REMITTANCE OF DEVELOPMENT COST CHARGES

5.1 Collection of Development Cost Charges by Member Municipalities. Subject to section 6.1,

each Member Municipality must:

(a) collect the development cost charges imposed on a Development under this Bylaw;

and

(b) not issue approval of a Subdivision or issue a Building Permit for any Development

unless the development cost charges imposed under this Bylaw have been paid

in accordance with Part 4.0.

5.2 Separate Account. Subject to section 6.1, each Member Municipality must establish and

maintain a separate account for the development cost charge monies collected under this

Bylaw and deposit and hold these monies in that separate account, in trust for the GVS&DD,

until the monies are remitted to the GVS&DD under section 5.4.

5.3 Remittance of Development Cost Charges by Municipalities. Each Member Municipality,

within 30 days after June 30 and December 31 of each year, must remit to the GVS&DD the

total amount of development cost charges collected by the Member Municipality under this

Bylaw during the six month period previous to such date, or an amount equal to such

development cost charges if the Member Municipality did not collect development cost

charges under this Bylaw, together with the statement referred to in section 5.4.

5.4 Statements. Each Member Municipality must provide statements to the GVS&DD, in

respect of each Sewerage Area within the Member Municipality, pursuant to section 5.3, for

every six month period comprising January 1 to June 30 and July 1 to December 31, setting

out:63

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 11 of 17

(a) the number and type of use of all Residential Use Parcels or Dwelling Units on which

development cost charges were levied by it under this Bylaw;

(b) the aggregate floor area of all Non Residential Use buildings or structures on which

development cost charges were levied by it under this Bylaw (calculated in

accordance with the Rate Schedules);

(c) the legal description and civic address of each Parcel on which development cost

charges were levied by it under this Bylaw, whether such development cost charges

were levied in respect of a Subdivision or a Building Permit;

(d) the date and amount of each payment of development cost charges levied by it

under this Bylaw and where section 4.7 applies to permit development cost charges

levied under this Bylaw to be paid by instalments, the amount of instalment

payments remaining to be paid to it and the dates for payment of such remaining

instalments;

(e) the total amount of all development cost charges levied by it under this Bylaw and

the total amount of all remaining instalment payments;

(f) the number, legal description, civic address and type of use of all Parcels in respect

of which Subdivisions were approved where no development cost charges were

levied by it under this Bylaw; and

(g) the number and type of use of all Dwelling Units and the aggregate floor area of all

Non Residential Use buildings or structures (calculated in accordance with the Rate

Schedules) in respect of which Building Permits were required where no

development cost charges were levied by it under this Bylaw.

5.5 Records. Each Member Municipality shall retain, for a period of four years, sufficient

records to support the statements and payments referred to in sections 5.3 and 5.4.

5.6 Inspection and Review of Municipal Records. The GVS&DD may, at any time, subject to

first giving reasonable notice to any Member Municipality, inspect any and all records of the

Member Municipality relating to the information required under section 5.4, the

calculation, collection and remittance by the Member Municipality of development cost

charges levied under this Bylaw, and the calculation and remittance by the Member

Municipality of any payments required under Part 6.0. Each Member Municipality shall

permit any employee or agent of the GVS&DD to inspect the records referred to above and

to make and take away copies of those records.

6.0 REPLACEMENT OF DEVELOPMENT COST CHARGES64

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 12 of 17

6.1 Municipal Agreements. Despite any other provision of this Bylaw, the GVS&DD may enter

into an agreement or agreements with any Member Municipality under which:

(a) all, some or some portion of the development cost charges under this Bylaw that

would otherwise apply are not required to be collected and remitted by the

Member Municipality; and

(b) the Member Municipality agrees to pay to the GVS&DD an amount equal to the

development cost charges that the Member Municipality would have collected

under this Bylaw but for such an agreement, in the manner and at the times set out

in the agreement, or otherwise in the same manner and at the same times that

development cost charges would otherwise have been payable.

6.2 Failure to Remit Development Cost Charges. If a Member Municipality fails, for any reason,

other than under an agreement under section 6.1, to collect any development cost charges

payable under this Bylaw or to remit to the GVS&DD any development cost charges

collected by it, the Member Municipality must pay to the GVS&DD on demand an amount

equal to the development cost charges that the Member Municipality should have collected

or remitted under this Bylaw.

7.0 INTERPRETATION

7.1 Severability. If a portion of this Bylaw is held to be invalid it shall be severed and the

remainder of the Bylaw shall remain in effect.

7.2 Schedules. Schedules “A”, “B”, “C” and “D” are attached to and form part of this Bylaw.

8.0 EFFECTIVE DATE

8.1 The effective date of this Bylaw is [date of adoption].

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 13 of 17

SCHEDULE A

FRASER SEWERAGE AREA – DEVELOPMENT COST CHARGE RATES

Description

1. Residential Dwelling Unit

2. Townhouse Dwelling Unit

3. Apartment Dwelling Unit

4. Non Residential Use

Rate

$1,731 per Dwelling Unit

$1,515 per Dwelling Unit

$1,082 per Dwelling Unit

$0.811 multiplied by the number of square

feet of Floor Area.

66

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 14 of 17

SCHEDULE B

LULU ISLAND WEST SEWERAGE AREA – DEVELOPMENT COST CHARGE RATES

Description

1. Residential Dwelling Unit

2. Townhouse Dwelling Unit

3. Apartment Dwelling Unit

4. Non Residential Use

Rate

$1,077 per Dwelling Unit

$942 per Dwelling Unit

$673 per Dwelling Unit

$0.505 multiplied by the number of square

feet of Floor Area.

67

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 15 of 17

SCHEDULE C

NORTH SHORE SEWERAGE AREA – DEVELOPMENT COST CHARGE RATES

Description

1. Residential Dwelling Unit

2. Townhouse Dwelling Unit

3. Apartment Dwelling Unit

4. Non Residential Use

Rate

$1,291 per Dwelling Unit

$1,129 per Dwelling Unit

$807 per Dwelling Unit

$0.605 multiplied by the number of square

feet of Floor Area.

68

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Greater Vancouver Sewerage and Drainage District Development Cost Charge

Bylaw No. 254, 2010 Page 16 of 17

SCHEDULE D

VANCOUVER SEWERAGE AREA – DEVELOPMENT COST CHARGE RATES

Description

1. Residential Dwelling Unit

2. Townhouse Dwelling Unit

3. Apartment Dwelling Unit

4. Non Residential Use

Rate

$944 per Dwelling Unit

$826 per Dwelling Unit

$590 per Dwelling Unit

$0.443 multiplied by the number of square

feet of Floor Area.

69

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To: Finance and Intergovernment Committee

From: Performance and Audit Committee

Date: July 10, 2017 Meeting Date: July 19, 2017

Subject: GVS&DD Development Cost Charge Program Review

At its July 7, 2017 meeting, the Performance and Audit Committee considered the report dated

June 23, 2017, titled “GVS&DD Development Cost Charge Program Review – Update”.

The Committee subsequently passed the recommendation below with the following comments:

That the Performance and Audit Committee endorse, in principal, the updated GVS&DD

Development Charge rates and consultation plan as presented in the report dated June 23,

2017, titled “GVS&DD Development Cost Charge Program Review Update”.

The Performance and Audit Committee considered a number of factors and inquired about the

following:

· rationale behind higher household rates in the North Shore municipalities

· explanation of the term “household impact” in the attached table and its relevance to the

revised DCC rates

· ensuring UDI is included in stakeholder consultation and that at least four sub-regional

meeting be held

· reason behind the policy not being reviewed for an extended period of time

· whether secondary suites and laneway houses incur DCC charges

· rationale behind DCC charges being calculated at a flat rate rather based on square footage

Staff responded that the four sewer areas each have a different cost profile due to differences in

population, growth rate, and prior infrastructure investments – including the timing of

infrastructure built prior to DCC program implementation in 1997.

Staff clarified that secondary suites and laneway houses do not incur DCC charges under the current

bylaw and this provision is not proposed to be changed.

Staff advised that the DCC rate categories are not proposed to change as municipalities have

specifically requested that the structure remain the same to ensure consistency across the region

with the application of regional DCC rates.

Attachment:

“GVS&DD Development Cost Charge Program Review - Update”, dated June 23, 2017 (Doc #: 21468673)

22594578

5.3

70

Attachment 3

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21468673

To: Finance and Intergovernment Committee

From: Phil Trotzuk, Chief Financial Officer / General Manager, Financial Services

Date: June 23, 2017 Meeting Date: July 19, 2017

Subject: GVS&DD Development Cost Charge Program Review Update

RECOMMENDATION

That the GVS&DD Board:

a) endorse, in principle, the proposed changes to the Development Cost Charge Program with the

rates as presented in Attachment 1 of the report dated June 23, 2017, titled “GVS&DD

Development Cost Charge Program Review Update”; and

b) direct staff to proceed with public and stakeholder consultation as presented in the report dated

June 23, 2017, titled “GVS&DD Development Cost Charge Program Review Update”.

PURPOSE

To present options and recommendations on the development cost charge (DCC) program rate

adjustments for purposes of proceeding with consultation with the Province and community

stakeholders.

BACKGROUND

The GVS&DD DCC program has been under review since 2014. In November of 2016 the initial results

of the review, including the DCC program policy framework, proposed rate adjustments, and the

transition plan for implementation of the program amendments for purposes of consultation was

presented to the Utilities Committee and the Finance and Intergovernment Committee.

At the November 25, 2016 meeting of the GVS&DD Board, the following motion was passed:

That the GVS&DD Board direct staff to proceed with public and stakeholder

consultation on the proposed changes to the Development Cost Charge Program

following the adoption of the 5-year financial plan in March 2017, and direct staff to

report back, prior to the consultation, on phasing of and potential strategies to

mitigate the impact of the rate increases.

Five year financial plan forecasts and scenarios were presented to the Board at a workshop in

February 2017 and will be formally presented in October in conjunction with the 2018 annual budget.

This report summarizes the options examined to mitigate the increase in the DCC rates, along with

the impact of those options on the liquid waste levy, the overall 5-year financial plan and the

household impact.

EXISTING DCC RATES

DCC rates established by sewer area are per unit for residential and per square foot for non-

residential. The existing DCC rates, in effect since 1997, are as follows: 71

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GVS&DD Development Cost Charge Program Review Update

Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017

Page 2 of 5

Sewer Area Single-Family Townhouse Apartment Non-Residential

Vancouver $ 944 $ 826 $ 590 $0.443 sq ft

Lulu Island $1,077 $ 942 $ 673 $0.505 sq ft

North Shore $1,291 $1,129 $ 807 $0.605 sq ft

Fraser $1,731 $1,515 $1,082 $0.811 sq ft

As these rates were established almost 20 years ago, cost and growth conditions have changed

significantly and they will not be sufficient to sustain funding requirements for the growth in the

region, particularly in the Fraser Sewerage Area. The chart below illustrates expected DCC reserve

balances for the next 10 years with the rates currently in place.

PROPOSED DCC RATES

A 30 year model was developed which projects the DCC’s required to fund the Liquid Waste

infrastructure expansion for population growth, in conjunction with the planned development within

a given sewer area. This development includes the following types of land use: single-family

detached, townhouses, apartments, and non-residential development. The DCC requirements are

based on funding long-term debt for the growth related infrastructure expenditures and includes

future funding on existing debt as well as funding for projected debt.

The proposed DCC rates presented at the November 25th GVS&DD Board meeting were calculated

assuming the requirement of funding the principal portion only on growth related long-term debt

based on the current financial model over the next 30 years. The calculated rates are as follows:

Sewer Area Single-Family Townhouse Apartment Non-Residential

Vancouver $1,811 $1,618 $1,072 $0.93 sq ft

Lulu Island $2,214 $1,915 $1,388 $1.05 sq ft

North Shore $2,300 $2,076 $1,416 $1.20 sq ft

Fraser $5,428 $4,695 $3,530 $2.67 sq ft

Attachment 1 illustrates these rates in comparison to the existing rates and also provides the

anticipated household impact of the sewer levy for the years 2017 to 2026. Also shown is a chart

illustrating anticipated DCC reserve balances.

72

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GVS&DD Development Cost Charge Program Review Update

Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017

Page 3 of 5

These rates represent that best estimate of the funding required for growth related infrastructure

and adheres to the principle of growth paying for growth. While these DCC’s represent only a very

small portion of the cost of new housing, these rates are a significant increase over the existing rates.

It is imperative that the DCC rates be reviewed every three to five years in order to adjust for cost

increases as necessary and avoid implementing such significant increases in the future.

Varying the Assist Factor

Initially, the DCC Review Committee recommended a phase-in period of three years due to the

significance of the increase in rates, particularly in the Fraser Sewer Area (FSA). Expanding upon this

concept, options for varying the assist factor, primarily within the Fraser Sewerage, were analyzed

for additional consideration. An outcome of varying the assist factor in the FSA to reduce the DCC

rate resulted in the DCC rate aligning more closely with the proposed rates in the other three areas

(Vancouver, North Shore, and Lulu Island). However, this change also resulted in the FSA household

rate increasing to offset this loss in DCC revenue. Under this option, the FSA household rate would

become closer to the household rates in the three other sewer areas, which are higher primarily due

to the fact that much of the growth infrastructure in those sewerage areas was constructed prior to

the implementation of the DCC program.

In three of the four sewerage areas (Vancouver, Lulu Island and North Shore), the majority of the Tier

1 infrastructure (trunk sewer lines, forcemains, interceptors, pump stations) is generally well

established and sufficient to meet most growth needs. The bulk of development reflects infill projects

that add capacity but do not trigger significant trunk upgrades. In fact, in two of the sewerage areas

(North Shore and Lulu Island) there are no Tier 1 infrastructure projects within the planned DCC

program. The FSA, however, is unique in that it includes significant growth development which

requires the extension of trunk lines, new pump stations, new interceptors, as well as a river crossing.

There are over 70 Tier 1 projects in the FSA DCC program. Despite the fact that significant growth is

anticipated within this sewer area, the resulting burden on this one portion of the region is

comparatively substantial.

To illustrate the impact of varying the assist factor, the table below shows DCC rates with a 50% Assist

Factor for Tier 1 Projects in the Fraser Sewerage Area.

Sewer Area Single-Family Townhouse Apartment Non-Residential

Vancouver $1,811 $1,618 $1,072 $0.93 sq ft

Lulu Island $2,214 $1,915 $1,388 $1.05 sq ft

North Shore $2,300 $2,076 $1,416 $1.20 sq ft

Fraser $4,453 $3,852 $2,897 $2.19 sq ft

As noted above, although there would be a decrease in the DCC charges for the FSA, there would be

a corresponding increase in the levy with an estimated household impact of $6 (3.5% increase over

the prior year) to pay for the growth projects not being covered by the DCC’s collected.

Several options for varying the assist factor were presented to RAAC on May 25th. The original

proposal retaining the 1% assist factor across all four sewerage areas, without any phase in period,

was the preferred approach.

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GVS&DD Development Cost Charge Program Review Update

Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017

Page 4 of 5

WAIVER OF DCC’S FOR AFFORDABLE HOUSING

The language for the waiver of DCC’s with respect to affordable housing development is under review

concurrently by the Housing Policy and Planning group. While it’s expected to add clarity and be more

effective than the waiver language in the existing bylaw, changes to the waiver language is not

expected to materially alter DCC revenue available for funding growth GVS&DD infrastructure

projects.

CONSULTATION PROCESS

The consultation process to date has involved feedback from the regional advisory committees of

administrators, engineers, planning and finance. Good feedback was received and there was general

support for the policy framework, the initial proposed DCC rates and the transition plan. Next steps

in the consultation process include expanded dialogue with the Province, meetings with affected

stakeholders including the Urban Development Institute and Greater Vancouver Home Builders

Association, regional Boards of Trade and Chambers of Commerce, and the initiation of broad public

outreach.

The proposed Communications and Engagement process, to be initiated in late August through early

November, is outlined as follows:

1. Meetings with stakeholders

· Host a series of public meetings in each of the four sewerage areas (1 each in Lulu, Vancouver,

and North Shore, and 2 in Fraser) at which Metro Vancouver representatives from Finance

and Liquid Waste Services will explain the proposed DCC Program and answer questions from

the audience. (Late August through October)

2. Dedicated Web Page:

· Create an online portal that includes detailed information the DCC Program and its

anticipated impact on overall development costs.

3. E-mail Distribution Lists

· Distribution of materials through the appropriate Metro Vancouver databases

4. Meeting(s) with the Province of BC

· Ongoing throughout consultation process. (September through Early November)

Further, TransLink is currently in the process of examining the feasibility of DCC funding for certain

transportation projects. As it is important to recognize the impact of the cost of regional charges,

Metro Vancouver and TransLink have committed to work together, where practical, on joint public

consultation.

IMPLEMENTATION TIMELINE

It is expected that the consultation process will wrap up in November, with the results and a new DCC

bylaw being brought forward before the end of the year. Staff will consult with municipalities to

establish an effective date of bylaw implementation that considers the implications to existing

processes and communications materials provided to prospective developers. At this time the

effective date is expected to be April 1, 2018.

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GVS&DD Development Cost Charge Program Review Update

Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017

Page 5 of 5

ALTERNATIVES

1. That the GVS&DD Board:

a) endorse, in principle, the proposed changes to the Development Cost Charge Program with

the rates as presented in Attachment 1 of the report dated June 23, 2017, titled “GVS&DD

Development Cost Charge Program Review Update”; and

b) direct staff to proceed with public and stakeholder consultation as presented in the report

dated June 23, 2017, titled “GVS&DD Development Cost Charge Program Review Update”.

2. That the Finance and Intergovernment Committee receive for information the report dated June

23, 2017, titled “GVS&DD Development Cost Charge Program Review Update” and provide

alternate direction.

FINANCIAL IMPLICATIONS

Alternative 1: If the Finance and Intergovernment Committee approves alternative 1, the report will

be forwarded to the GVS&DD Board for approval. The cost of the public and stakeholder engagement

and consultation process will be funded through the liquid waste function budget. Details of the DCC

sewerage area rate structure, projected household impact and growth projects by sewerage area are

included in Attachments 1 and 2.

Alternative 2: If the Finance and Intergovernment Committee approves alternative 2, further analysis

may be required to determine the resulting financial impacts.

SUMMARY / CONCLUSION

The GVS&DD DCC program has been under review since 2014 and in November 2016 the initial review

results were presented to the Utilities Committee and the Finance and Intergovernment Committee.

At the direction of the Board, since that time further work has been undertaken to build the proposed

DCC rates into Metro Vancouver’s long term financial plan which will be considered this fall as part

of the 2018 annual budget and five year financial plan process.

Although a variety of options were considered in the development of the proposed DCC rate

structure, the Board principle that ‘growth pays for growth’ has guided the recommendations

presented in this report. The current proposed DCC rates as detailed in Attachment 1 represent the

best estimate of DCC funding required for growth related infrastructure and adheres to the principle

of growth paying for growth. It is recommended that the Board approve the recommendations as

presented in alternative one, and that staff proceed to consultation with the public and key

stakeholders on the proposed DCC rate structure.

Attachments:

1. Proposed DCC Rates

2. Growth Projects by Sewerage Area

21468673

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21468673

ATTACHMENT 1

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Growth Projects by Sewerage Area

2018 - 2037

Project Estimated Cost

Vancouver Sewerage AreaCollingwood Trunk Sewer 5,090,000$ Hastings Sanitary Trunk Sewer 13,300,000 Hastings Sanitary Trunk Sewer No. 2 30,000,000 Hastings-Cassiar Intake Connection 750,000

49,140,000$

North Shore Sewerage Area

North Vancouver Interceptor - Lynn Branch Pre-build 3,500,000$

Lulu Island Sewerage Area

Lulu Island WWTP Digester No 3 53,300,000$

Fraser Sewerage AreaAIWWTP Effluent Pump Station 61,000,000$ AIWWTP Site Construction Layout 600,000 Albert Street Trunk Sewer 4,600,000 Annacis Outfall System 375,000,000 Annacis Stage 5 Expansion Phase 1 & 2 595,500,000 Burnaby Lake North Interceptor Cariboo to Piper Section 41,000,000 Burnaby Lake North Interceptor Phillips to Sperling Section 42,341,163 Burnaby Lake North Interceptor Piper to Philips Section 62,100,000 Burnaby South Slope Interceptor Main Branch 9,500,000 Burnaby South Slope Interceptor West Branch Extension 13,200,000 Cloverdale PS Upgrade 31,100,000 Cloverdale Trunk Sewer Upgrade 28,975,000 Glenbrook Combined Trunk Kingsway Sanitary Section 3,400,000 Golden Ears Forcemain and River Crossing 114,000,000 Golden Ears Pump Station 38,100,000 Langley Pump Station Upgrade 14,300,000 Lozells Sanitary Trunk Golf Course Section 22,150,000 Marshend Pump Station Capacity Upgrade 9,900,000 NLWWTP Ground Improvements Phase A 24,000,000 NLWWTP Ground Improvements Phase B 18,000,000 NLWWTP Liquid Stream Phase A 356,000,000 NLWWTP Liquid Stream Phase B 256,000,000 NLWWTP Solids Handling 126,000,000 North Road Trunk Sewer 7,000,000 North Road Trunk Sewer Phase 2 3,938,000 NSI 104th Ave Extension 6,800,000 NSI Flow Management 39,500,000 NWLWWTP Options 5,000,000 NWLWWTP Phase 1 44,728,793 Port Moody PS Upgrade 9,150,000 Port Moody South Interceptor Upgrade 3,450,000 Queensborough Pump Station Replacement 6,500,000 Rosemary Heights Pressure Sewer Upgrade 10,750,000 Sapperton Forcemain Pump Station Connections 5,500,000 Sapperton Pump Station 76,400,000 South Surrey Interceptor Johnston Section 65,350,000 Sperling PS Increase Pump Capacity 3,000,000 SSI - King George Section - Odor Control Facility (OCF) and Grit Chamber 13,500,000 Stoney Creek Trunk Upgrade 10,200,000 Surrey Central Valley Upgrade 60,800,000

2,618,332,956$

ATTACHMENT 2

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August 24, 2017

Honourable Marc Garneau Honourable Amarjeet Sohi

Minister of Transport Minister of Infrastructure and Communities

330 Sparks Street 180 Kent Street, Suite 1100

Ottawa, Ontario K1A 0N5 Ottawa, Ontario K1P 0B6

Dear Minister Garneau and Minister Sohi,

Re: Greater Vancouver Gateway 2030 – Expression of Interest Submissions

The City of Port Coquitlam has been actively engaged by the Gateway Transportation

Collaboration Forum regarding the Greater Vancouver Gateway 2030 Program. We believe that

the Greater Vancouver Gateway 2030 projects are important investments in the region’s

transportation network. By removing bottlenecks, they will help in addressing the community

impacts of growing trade and population increase, while strengthening greater Vancouver’s

position as the preferred gateway for Canada’s trade with the Asia-Pacific.

In 2013, the City of Port Coquitlam adopted a Master Transportation Plan to guide the

development of our pedestrian, bicycle, transit, and road networks over the next 30 to 40 years.

The three crossings in and around our community (Pitt River Road, Kingsway and Westwood)

are specifically identified within our plan as requiring grade separation, as each of these

crossings is frequently blocked by train crossings throughout both the day and night. Grade

separation will improve local and regional traffic flows, road safety for our citizens, as well as

enable businesses within our community to benefit from the increased trade the program will

bring to Canada.

We fully support the submission of Expressions of Interest to the National Trade Corridors Fund

for both the Pitt River Road and Westwood Street Overpass projects. We continue to engage

with the Gateway Transportation Collaboration Forum regarding the Kingsway Avenue

Overpass Project, as there will be significant community impacts to any changes to this crossing

which we wish to fully understand prior to supporting a specific application.

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- 2 -

We look forward to continuing to work with the Gateway Transportation Collaboration Forum

on future projects within and adjacent to the City of Port Coquitlam.

Sincerely,

Kristen Meersman, P.Eng, MBA

Director of Engineering and Public Works

City of Port Coquitlam

Cc:

Ron McKinnon, MP, Coquitlam-Port Coquitlam

Michael Keenan, Deputy Minister of Transport

Michael Henderson, Greater Vancouver Gateway Council

Brad Glazer, Ministry of Transportation and Infrastructure

Peter Xotta, Vancouver Fraser Port Authority

Geoff Cross, TransLink

Trevor Heryet, Transport Canada

Alex Izett, GVG 2030 Program Team

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