DocumentsPresentationJan 22, 2024Pages 5–28
CRD Regional Water Supply (RWS) Development Cost Charge (DCC) Program — Presentation
Slide deck presented to the Committee outlining the proposed Capital Regional District Regional Water Supply Development Cost Charge program, including program rationale, proposed rates, project lists, benefit allocations, consultation and timeline.
Key facts
- Proposed implementation: early 2025 (if bylaw adopted and provincial approval obtained)
- Proposed RWS DCC sample rates (per CRD proposed table): Low Density Residential (single family) proposed RWS rate $9,044 per lot; Medium Density ~ $7,914 per unit; High Density ~ $5,087 per unit; Commercial $33.92 per m2
- Total proposed DCC-recoverable program costs shown in slides (multi-hundred million to $1.444B total program number across projects)
- Consultation plan includes meetings with member municipality staff and elected officials, public open houses, CRD Board / RWSC engagement, and CRD project webpage
CRD Regional Water Supply (RWS) Development Cost Charge (DCC) Program — Presentation
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Supporting Corporate Documents and Political Oversight
- Supporting Corporate Documents:
- CRD 2023-2026 Corporate Plan
- CRD Regional Water Supply (RWS) 2017 Strategic Plan
- CRD RWS 2022 Master Plan
- Political Oversight and Direction:
- Water Advisory Committee (WAC)
- Regional Water Supply Commission (RWSC)
- CRD Board
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The CRD Regional Water Supply (RWS) Service
- The CRD’s Regional Water Supply (RWS) Service provides bulk drinking water to the Municipalities and First Nations in the Greater Victoria Area
- The system provides water for residential, industrial, commercial, institutional, and agricultural uses to approximately 400,000 people
- The primary source is the Sooke Lake Reservoir
- Major components of the RWS system include: 3 watersheds, 15 dams, 2 tunnels, 2 disinfection facilities, ~120km of transmission mains
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Presentation Overview
- DCC Overview and Current DCC Rates
- Proposed Regional Water Supply (RWS) DCC:
- Program Development
- Policy Considerations
- Proposed RWS DCC Bylaw: Program and Rates
- Discussion/Questions
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Development Cost Charges (DCCs) — Overview
- Fees to help communities recover the costs of “off-site” infrastructure needed for growth (i.e., capacity)
- Regulated by the province:
- Section 14, Division 19 of the Local Government Act
- Provincial DCC Best Practices Guide
- Development Cost Charge Guide for Elected Officials
- Ministerial approval
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Guiding Principles
- Foster fairness (e.g., “benefiter pay” principle means growth pays for growth)
- Ensure consistency
- Minimize financial risk to the CRD
- Ensure certainty for the development community (e.g., clear policy framework) and that services support growth and development
- Promote transparency and equitability
- Ensure timely processing of development applications
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Who Pays DCCs?
- Applicants for subdivision approval to create single family development sites
- Applicants for building permits to construct multi-family, commercial, industrial, and institutional development
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Current DCC Rates (Example / Reference)
| Total | Sewer Capital Recovery Fee*** | JDF WDS** | Municipal DCCs* | Collection Unit | Development Category |
|---|---|---|---|---|---|
| $24,959.00 | $11,149.00 | $2,922 | $10,888.00 | per Lot | Low Density Residential (single family) |
| $21,042.00 | $11,149.00 | $2,922 | $6,971.00 | per Lot | Low Density Residential (small lot single family) |
| $18,013.50 | $8,485.50 (0.75 SFE) | $2,557 | $6,971.00 | per Unit | Medium Density Multi Family (duplex, townhouse, etc.) |
| $6,709.39 | - | $1,644 | $5,065.39 | per Unit | High Density Multi-Family (apartments) |
| $69.44 | - | $10.74 | $58.70 | per GFA in m2 | Commercial |
| $16.73 | - | $5.82 | $10.91 | per GFA in m2 | Industrial |
| $97.90 | - | $23.74 | $74.16 | per GFA in m2 | Institutional |
- Storm drainage costs vary depending on area, costs listed above reflect the South of Sooke Road area
** The Juan de Fuca Water Distribution Service DCC Bylaw update is underway
*** Charged per R2 equivalent lot; includes the additional $495 Incremental Storage Improvement Fee
SFE = Single Family Equivalent
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DCC Program Development, Capital Costs, and Project List
- DCC projects within the 30-year timeframe were identified from available infrastructure/capital plans and staff input, including the Regional Water Supply 2022 Master Plan and the CRD RWS 2023 Capital Plan. The RWS 2022 Master Plan recommends $2B+ in infrastructure upgrades over the next 30 years.
- Eligible DCC projects were prioritized based on their benefit to future growth and their likelihood of being constructed within the 30-year DCC time horizon. Conversely, renewal is not DCC-eligible.
- Determining project timing and priorities over the 30-year time horizon (2023-2053) based on where growth is occurring.
- Determining the relative benefit of each project to the existing community vs. new development and the proportion of capital costs attributable to new vs. existing development.
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DCC Rate Calculation Process
- Determine Capital Costs and Project Timing
- Determine Benefit Factors
- Determine DCC Assist Factor
- Calculate DCC Rates
- Estimate Growth
= Technical inputs
= Policy inputs
= Calculated values
Inputs considered:
- Population Growth
- Master Plans
- Strategic Plans
- Capital Plans
- Building Permit Data
- CRD Board decision
"Extent to which projects are driven by growth" — 50% / 50% (technical vs policy inputs shown on slide)
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Assist Factor
- The Local Government Act requires the CRD to “assist” development for DCCs
- The assist amount would be funded through the Regional Water Supply rate; CRD member municipalities are not responsible for funding the Assist Factor
- The Assist Factor can vary from 1% (least assistance) to 99% (most assistance)
- Assist Factors are typically between 1% and 10%
- Proposed RWS DCC rates assume the minimum 1% Assist Factor
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Capital Costs and Benefit Allocations (Selected Projects)
| Project | CRD Costs (i.e., CRD Responsibility) | DCC Recoverable (i.e., Developer Responsibility) | Benefit to New vs. Existing Development | Total Program Costs |
|---|---|---|---|---|
| Sooke Lake Reservoir Deep Northern Intake | $48.8M | $25.9M | 35% | $74.7M |
| Leech Watershed | $0.3M | $28.2M | 100% | $28.5M |
| Water Filtration Plant | $535.3M | $283.8M | 35% | $819.1M |
| Transmission Mains | $318.2M | $168.7M | 35% | $487.0M |
| Smith Hill Storage Tank | $15.8M | $15.5M | 50% | $31.3M |
| Studies/Modelling | $2.5M | $1.3M | 35% | $3.8M |
| TOTAL | $920.9M | $523.4M | 35-100% | $1,444.4M |
Note: The 1% Assist Factor is equivalent to $5.3M; the CRD will recover this cost through the Regional Water Supply rate
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Proposed RWS DCC Rates (Summary)
| Total DCC Rate | Sewer Capital Recovery Fee*** | JDF WDS Rate** | Municipal DCC* | RWS Proposed Rate | Collection Unit | Development Category |
|---|---|---|---|---|---|---|
| $34,003.00 | $11,149.00 | $2,922 | $10,888.00 | $9,044 | per Lot | Low Density Residential (Single Family) |
| $30,086.00 | $11,149.00 | $2,922 | $6,971.00 | $9,044 | per Lot | Low Density Residential (Small Lot Single Family) |
| $25,927.50 | $8,485.50 (0.75 SFE) | $2,557 | $6,971.00 | $7,914 | per Unit | Medium Density Multi Family (e.g., Duplex, Townhouse) |
| $11,796.39 | $0 | $1,644 | $5,065.39 | $5,087 | per Unit | High Density Multi-Family (Apartments) |
| $103.36 | $0 | $10.74 | $58.70 | $33.92 | per GFA in m2 | Commercial |
| $33.69 | $0 | $5.82 | $10.91 | $16.96 | per GFA in m2 | Industrial |
| $171.38 | $0 | $23.74 | $74.16 | $73.48 | per GFA in m2 | Institutional |
- Storm drainage costs vary depending on area, costs listed above reflect the South of Sooke Road area
** The Juan de Fuca Water Distribution Service DCC Bylaw update is underway
*** Charged per R2 equivalent lot; includes the additional $495 Incremental Storage Improvement Fee
SFE = Single Family Equivalent
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Detached Dwelling Comparison (Per Unit)
Langford’s DCC rate above includes the Sewer Capital Recovery Fee of $11,149.00
Values shown (per unit, by municipality):
- Victoria (2022): $15,915.19
- View Royal (2023): $21,772.00
- Colwood (2021): $22,058.96
- Nanaimo (2022): $25,843.51
- Langford (2022): $34,003.00
- Kelowna (2022): $35,082.00
- Abbotsford (2021): $35,645.00
- New Westminster - Mainland Area (2022): $38,481.00
- New Westminster - Queensborough Area (2022): $45,865.00
- Coquitlam (2023): $79,080.00
Breakdown categories shown in chart:
- Roads DCC
- Drainage DCC
- Sewer DCC
- Water DCC
- Park DCC
- Regional DCC
- Proposed Regional Water Supply (RWS) DCC
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Consultation and Engagement
- Meetings with Staff from Member Municipalities to Confirm Growth Estimates
- Meetings with Elected Officials in Member Municipalities
- Consultation with CRD Board, RWS Commission*, and Staff
- Facilitate open houses for the public and development community meetings to provide notification and seek feedback on draft rates
- Use the CRD’s website to provide information and updates for the general public as the project progresses
We are here!
*Regional Water Supply Commission
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Implementation and Next Steps
- If adopted, the DCC program has a proposed implementation date of early 2025
- 12-month in-stream application protection from updated DCC rates
- Many applicants will not be impacted until early 2026
- CRD will re-evaluate and update the program every 5 years to account for changes in growth, project costs, and any grants received
Process:
- Present Draft DCC Bylaw to CRD Board
- Three Readings of DCC Bylaw
- Provincial Approval (Inspector of Municipalities)
- Bylaw Adoption
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More Information
THANK YOU!
For more information about the proposed RWS DCC, please visit:
https://www.crd.bc.ca/project/proposed-regional-water-supply-development-cost-charge-program
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Document Images
(7)
Title slide / presentation cover graphic
Slide depicting applicants and application types
Table slide showing current DCC rates
Slide summarizing DCC project selection and eligibility
Flowchart slide showing DCC calculation steps
Slide explaining Assist Factor
Table slide showing capital costs and benefit allocations
Extracted from: Agenda(33 pages total)