City of Langford Stormwater Development Cost Charge Bylaw 2022 (Bylaw No. 2022) (Background Reports Attached)

Staff Report to Special Council

DATE

Monday, November 21, 2022

DEPARTMENT

Engineering

SUBJECT

Adoption Report - Bylaw No. 2022, South Langford Stormwater DCC Bylaw

BACKGROUND

The purpose of this report is to support final adoption of Bylaw No. 2022, South Langford Stormwater DCC Bylaw.

COMMENTARY

At the regular meeting of Council on May 2, 2022, Council considered Bylaw No. 2022, South Langford Stormwater DCC bylaw, with an accompanying staff report, which can be found in the attached report dated May 2, 2022.

Council gave Bylaw No. 2022, South Langford Stormwater DCC bylaw, three readings, and the bylaw was forwarded to the Inspector of Municipalities for consideration. The Inspector has approved Bylaw No. 2022, South Langford Stormwater DCC Bylaw.

Staff are recommending that Council now adopt this current Stormwater DCC bylaw to continue to enable the City to protect areas prone to flooding in South Langford by enabling stormwater infrastructure improvements funded through Stormwater Development Cost Charges.

FINANCIAL IMPLICATIONS

Council must approve the yearly taxpayer contribution and include that in the municipal budget. The Stormwater DCC program as proposed will require a yearly taxpayer contribution of $29,174. This is slightly lower than the current annual value of $32K in the 5-Year Financial Plan.

LEGAL IMPLICATIONS

In accordance with the Local Government Act, the Inspector of Municipalities has approved Bylaw No. 2022, South Langford Stormwater Development Cost Charge bylaw.

OPTIONS

Option 1
THAT Council adopt the City of Langford Stormwater Development Cost Charge Bylaw No. 2022, 2022.

AND

THAT Council repeal City of Langford Development Cost Charge Bylaw No. 1700, 2017.

OR Option 2
THAT Council do nothing at this time with respect to the City of Langford Stormwater Development Cost Charge Bylaw No. 2022, 2022.

SUBMITTED BY

Michelle Mahovlich, P.Eng., P.Geo., Director of Engineering and Public Works

Concurrence

• Donna Petrie, Senior Manager of Business Development and Events
• Will Ying-udomrat, Manager of Legislative Services
• Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision
• Michael Dillabaugh, CPA, CA, Director of Finance
• Marie Watmough, Deputy Director of Corporate Services
• Braden Hutchins, Director of Corporate Services
• Darren Kiedyk, Chief Administrative Officer

Attachments

• Staff Report to Council dated May 2, 2022, titled “Stormwater Development Cost Charge Update 2022”
• City of Langford Stormwater Development Cost Charge Bylaw No. 2022, 2022.

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Staff Report to Council (Considered at the May 2, 2022 Regular Council Meeting)

DATE

Monday, May 2, 2022

DEPARTMENT

Engineering

SUBJECT

Stormwater Development Cost Charge Update 2022

BACKGROUND

Development Cost Charge (DCC) bylaws require refreshment from time to time in order to review the relevance of the project list with respect to shifting development patterns, completed DCC projects, and to reflect current construction costs. A revised Stormwater DCC Bylaw for 2022 has been prepared for Council review, comment, and approval.

Development Cost Charges are a way for the City to collect funds to improve infrastructure that will support projected development over a specified time horizon, under the provisions of the Local Government Act. The concept of “Benefiter pays” is the key component of this legislation: Infrastructure costs should be paid by those who will use and benefit from the construction of the works.

Development Cost Charges may be collected by the City for improvements to roads, storm drainage, parkland acquisition, and park improvements. DCCs may be collected as a condition of subdivision for single family and duplex development, and at building permit for multi-family, commercial, institutional, and industrial development. Similarly, the Capital Regional District (CRD) also has DCCs, and the School District applies School Site Acquisition charges, permitted under a different section of the Act.

The City can use the funds collected through a DCC program to pay for improvements identified in the same DCC program; alternatively, the works can be constructed by others as part of their development process in return for credit toward DCC’s payable.

The last time a full review was completed for the Stormwater DCC program was in 2017. The DCC program should be refreshed every 5 years to ensure that the projects are still relevant and that costs are appropriate.

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Stormwater Development Cost Charge Update 2022

COMMENTARY

STORMWATER DCC AREA

The City is considering an area-specific stormwater DCC bylaw for a particular area of North Langford; however, that area is separate from the works proposed as part of the overall South Langford stormwater management area that is the subject of this report. A new and separate stormwater DCC program would be implemented for the North Langford area in the future.

This report and accompanying Stormwater DCC Bylaw No. 2022 for South Langford meet the goals of Council to revisit the storm drainage plans and refresh the Stormwater DCC bylaw every 5 years to ensure that the stormwater system will continue to meet the needs of the community.

A Map showing contributing lands for the proposed 2022 Storm DCC program is attached as Schedule B to Bylaw No. 2022.

STORMWATER DCC PROJECTS 2017 VERSUS 2022

For historical reference, prior to the 2017 stormwater DCC update, the 2012 stormwater DCC program list had 33 projects. In the five (5) year span between 2012 and 2017 the City successfully:

• Completed 40% of the original 2012 Stormwater DCC program by storage volume
• Provided 30,000 m3 of additional stormwater storage
• Lowered the 200 Year Peak Flows (m3/s) as much as 32.5% (Flatman Pond area) and an average of 10% in the program area or 0.1 to 0.3m
• Lowered peak flows at Bilston Creek near Wild Ridge Way by 0.53m3/s, or 0.16m in height

The 2017 Stormwater DCC program contained eighteen (18) ponds, stormwater drains and channel improvements, however one project had a nil/zero value due to a typographic error leaving seventeen (17) actual projects.

Of the 17 projects in the 2017 Stormwater DCC program, eight (8) have been completed or are considered redundant and are listed below. The project numbers referenced below are those shown in the current Bylaw No. 1700.

• Project 2 – Parkdale Drive/Sooke Road “pond”, has been removed because it is not part of the South Langford catchment area; rather, it would capture upstream drainage from the Westhills development area if it were required.
• Project 3 – Desmond Pond – upgrades were completed in 2020/2021.
• Project 5 – 3609 Dicker Road Pond – the property is inside of the ALR and will not develop, therefore removing from the project list.
• Project 7 – Parkdale/Slegg Channel – the work was completed as part of the Chidlow Connector Project in 2021.
• Project 8 – Summer Breeze Road channel works were completed in 2019.
• Project 14 – 919-931 Walfred storm drain work was completed in 2019.
• Project 15 – 2622-3227 Ernhill – improvements were captured in work done for Project 16 below that is 2621-2633 Ernhill Road, therefore this can be removed.
• Project 16 – 2621-2633 Ernhill Road storm drain improvement project is completed but the Developer who constructed this work is carrying a stormwater DCC credit.

The new proposed 2022 Stormwater DCC program includes nine (9) projects that remain to be completed and one (1) project that is completed but the Developer/Owner holds a DCC credit for the works (Project #8, Bylaw No. 2022). Credits still need to be accounted for in the program. The projects are shown as Schedule A in Bylaw No. 2022.

In the proposed Bylaw No. 2022, the following projects are carried over from Bylaw No. 1700, 2017:

• Projects 1,2,3,5,6,7,8
• Project 4 – Luxton-Bilston improvements were further refined following a geotechnical investigation of the sidewalls of the channel (WSP, December 2020)

The net Stormwater DCC eligible program value is $4,420,868.

Council may wish to note that storm drainage (and other) DCC funds can only be used for capacity improvement, not maintenance.

STAKEHOLDER INPUT

The Best Practices Guide provided by the Ministry of Community, Sport and Cultural Development recommends stakeholder input to the proposed bylaws to ensure that there will be no negative effect to development and affordable housing.

An Ad Hoc Committee comprised of staff and representatives of the West Shore Developers’ Association have had the opportunity to review and comment on the proposed bylaw and has officially endorsed the program.

COLLECTION OF DCCS

Development Cost Charges are collected on a per lot basis at the time of subdivision for Single Family projects, at building permit on a per unit basis for Multi Family projects and per square metre of gross building area for Commercial, Industrial and Institutional projects such as schools.

DCC CREDIT

If a developer or land owner constructs works as a condition of development approval that form part of the Stormwater DCC projects list, they may be eligible for DCC credit up to the dollar value of DCC’s payable for that project.

The credit may be in the form of charges not payable at the time of building permit, or in the form of a rebate. The City created a Road and Storm Drainage DCC Credit Policy (POL-0003-ENG) in 2012 that provides a guide to staff and developers with respect to enabling DCC credits. The policy was recently amended to address instances of developer bankruptcy.

FINANCIAL IMPLICATIONS

The intent of a DCC program is that improvements required to support future development are paid for by that development. Any benefit to existing users is expressed as a percentage of the cost of the works and deducted from the total cost of the projects.

The proposed Stormwater DCC program has a 10% assist factor which has been consistent since at least 2012. The proposed rates in Bylaw No. 2022, 2022 are 13% lower than the current Bylaw No. 1700, due primarily to project completions to date.

Council must approve the projected yearly taxpayer contribution and include that in the municipal budget. The DCC program as proposed will require a yearly taxpayer contribution of $29,174 in the Stormwater DCC program. This is slightly lower than the current value ($32K) in the 5-year financial plan.

LEGAL IMPLICATIONS

The bylaw requires approval by the Inspector of Municipalities for the Province prior to bylaw adoption.

OPTIONS

Option 1
THAT Council

1. Consider giving the first three readings to the City of Langford Stormwater Development Cost Charge Bylaw No. 2022, 2022.
   AND
2. Consider repealing City of Langford Development Cost Charge Bylaw No. 1700, 2017.
   AND
3. Direct staff to refresh the Stormwater DCC program at least every 5 years.

OR Option 2
THAT Council decline to pursue changes to the Roads and Stormwater DCC bylaw currently.

SUBMITTED BY

Michelle Mahovlich, P.Eng., P.Geo., Director of Engineering and Public Works

Concurrence

• Donna Petrie, Manager of Business Development and Events
• Will Ying-udomrat, Manager of Legislative Services
• Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision
• Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering and Public Works
• Michael Dillabaugh, CPA, CA, Director of Finance
• Marie Watmough, Acting Director of Corporate Services
• Darren Kiedyk, Chief Administrative Officer

Attachment: City of Langford Stormwater Development Cost Charge Bylaw No. 2022, 2022.

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CITY OF LANGFORD — BYLAW NO. 2022

A BYLAW TO IMPOSE STORMWATER DEVELOPMENT COST CHARGES.

WHEREAS

(a) Council may impose development cost charges under Section 559 of the Local Government Act.

(b) Development Cost Charges (DCCs) may be imposed for the sole purpose of providing funds to assist the City in paying the capital cost of providing, constructing, altering or expanding sewage, water, drainage and highway facilities and providing or improving park land, or any of them, in order to serve, directly or indirectly, the development for which the charges are imposed.

(c) In the consideration of Council, the charges imposed under this bylaw: (i) are not excessive in relation to the capital cost of prevailing standards of service in the City;
(ii) will not deter development in the City;
(iii) will not discourage the construction of reasonably priced housing or the provision of reasonably priced serviced land;

(d) In the opinion of Council, the charges imposed under this bylaw are: (i) related to capital costs attributable to projects included in the City's capital expenditure bylaw, including projects described in Schedule “A” attached to and forming part of this Bylaw;
(ii) related to capital projects consistent with the City's Official Community Plan.

Now therefore, the Council of the City of Langford, in open meeting assembled, hereby enacts as follows:

Interpretation (Section 1)

In this Bylaw:

• "Building" means any structure used or intended for supporting or sheltering any use or persons, animals, or property.
• "City" means the City of Langford or the geographical area within the boundaries of the City of Langford, as the context requires.
• "Commercial" means any commercial use as permitted under the City's zoning bylaw.
• "Dwelling unit" means two or more habitable rooms constituting a self-contained unit with a separate entrance and used or intended to be used together for living and sleeping purposes for not more than one family and containing a separate and properly ventilated kitchen with a sink and not more than one set of cooking facilities and a bathroom with a water closet, washbasin and a bath or shower, and includes all seniors housing.
• "Industrial" means a use permitted in an industrial zone under the City's zoning bylaw.
• “Institutional” means any use that is not commercial, industrial, public utility or residential.
• "Multi-family" means a use containing four or more dwelling units.
• "Residential" means a use containing up to and including three dwelling units.
• "Public Utility" means a private business organization that is subject to governmental regulation because it provides an essential service or commodity such as water, electricity, sewage collection, transportation, or communication to the consuming public or a public or private recreational building located on City land providing space to the general public for the purposes of recreation.
• "Structure" means anything constructed, erected, or placed, the use of which requires location on the ground or attachment to something having location on the ground; excludes concrete or asphalt or similar surfacing of a lot, fences, signs and underground sewage disposal facilities.
• "Townhouse" means: a) A building divided into two or more dwelling units with each dwelling unit having direct access to the exterior at grade or;
  b) Two or more detached dwellings constructed on the same lot.

Charges (Section 2–5)

2. a) Development cost charges for storm drainage are imposed only on DCC Contributing Lands indicated by shading on Schedule “B”.

b) Every person who obtains approval of a subdivision, including a subdivision for the purpose of leasing land for a term exceeding 3 years, in a zoning district which permits the use of land for residential purposes shall pay to the City the development cost charges set out in Schedule "C" attached to and forming part of this bylaw, and the approving officer shall not approve such a subdivision until such development cost charges have been paid.

c) Every person who obtains a building permit for a building or structure for a residential, commercial, institutional, industrial, or public utility development use, including a building containing fewer than four dwelling units, shall pay to the City the development cost charges set out in Schedule "C" and the building inspector shall not issue such a building permit until such development cost charges have been paid.

3. a) The charges imposed under Section 2(b) shall be paid in respect of the number of lots created in addition to the number of lots existing at the time of subdivision, and based on two dwelling units for each additional lot on which the zoning bylaw permits the construction of duplexes.

b) The charges imposed under Section 2(c) shall be calculated based on the information contained in the building permit application, and may, in the sole discretion of the City, be adjusted as necessary with reference to the building constructed, and any additional amount shall be paid prior to the issuance of an occupancy permit.

4. A charge is payable in respect of every event under Schedule C, provided that: a) a charge is not payable under this Section where a charge under this bylaw has been paid previously for the same event in respect of the same development.
   b) a credit shall be deducted from the amount that would otherwise have been imposed under this Section in respect of a parcel for development cost charges previously paid to the City for the same development on the same parcel under this bylaw.

5. Under no circumstances shall any charges collected under this bylaw be refunded. When an approved subdivision plan is not deposited or no construction is commenced pursuant to an approved building permit, charges collected shall be credited toward charges payable in respect of a future charging event under Schedule C.

Exemptions (Section 6)

No charge is payable under this bylaw where: a) the building permit authorizes the construction, alteration or extension of a building or part of a building that is, or will be, after the construction, alteration or extension, exempt from taxation under s. 220(1)(h) or s. 224(2)(f) of the Community Charter; or
b) the value of the work authorized by the permit does not exceed $50,000 or any other amount prescribed by regulation under s. 561(9) of the Local Government Act.

Severance (Section 7)

In the event a portion of this bylaw is set aside by a court of competent jurisdiction, the portion is deemed to be severed from the bylaw such that the remaining portions of the bylaw continue in force and effect.

Citation (Section 8)

This bylaw may be cited for all purposes as the "City of Langford Stormwater Development Cost Charge Bylaw No. 2022, 2022."

Repeal (Section 9)

City of Langford Development Cost Charge Bylaw No. 1700, 2017 is repealed.

READ a first time this 18th day of July, 2022.
READ a second time this 18th day of July, 2022.
READ a third time this this 18th day of July, 2022.
APPROVED BY The Inspector of Municipalities, pursuant to s. 560 of the Local Government Act on this 3rd day of October 2022.

ADOPTED this day of , 2022.

MAYOR
(Certified Correct)

CORPORATE OFFICER

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SCHEDULE C — DEVELOPMENT COST CHARGES (Bylaw No. 2022)

The charges to be levied and paid are the amounts specified in Columns B and C of Tables 1 in respect of the class of development specified in Column “A”.

Table 1 – Storm Drainage

• gfa = gross floor area