2019 City-Wide Development Charges Background Study Version for Public Consultation HEMSON C o n s u l t i n g L t d. March 15, 2019 Table of Contents List of Acronyms .......................................................................................... 1 Executive Summary ...................................................................................... 2 A. Purpose of 2019 Development Charges (DC) Background Study .. 2 B. City-Wide and Area-Specific DCs Have Been Calculated ............... 3 C. Development Forecast .................................................................... 4 D. Public Transit Ridership Forecast ................................................... 5 E. Calculated Development Charges .................................................. 5 F. Cost of Growth Analysis .................................................................. 6 G. Development Charges Administration & Policy Considerations ...... 7 I Purpose of 2019 Development Charges Background Study ............. 8 A. Introduction and Background .......................................................... 8 B. Legislative Context .......................................................................... 9 C. The 2019 DC Study is Intended to be an Interim Update ................ 9 D. Consultation And Approval Process ................................................ 9 E. Key Steps In Determining DCs for Future Development-Related Projects ......................................................................................... 10 F. Long-Term Capital and Operating Impacts and Asset Management Plan Legislative Requirements ...................................................... 15 G. Specific Requirements for Public Transit Services ........................ 16 II City-Wide and Area-Specific Development Charges are Proposed 18 A. Proposed Methodology Aligns Development-Related Costs and Benefits ......................................................................................... 18 B. City-Wide and Area-Specific Development Charges are Calculated ...................................................................................................... 18 III Development Forecast & Public Transit Ridership Forecast .......... 21 A. Applicable Planning Horizons and Benefitting Periods ................. 21 B. Key Assumptions .......................................................................... 21 C. Residential and Non-Residential Development Forecast .............. 21 D. Public Transit Ridership Forecast ................................................. 24 IV Summary of Historical Service Levels for Applicable Services ...... 25 V The Development-Related Capital Forecast and Planned Level of Service for Public Transit Services ................................................... 28 A. A Development-Related Capital Forecast is Provided for Council’s Approval ........................................................................................ 28 B. Planned Level of Service for Public Transit ................................... 28 C. The Development-Related Capital Forecast for All City Services . 29 VI Calculated Development Charges ..................................................... 32 HEMSON A. Overview of Development Charges Calculations .......................... 32 B. Total DC Recoverable Share of the Net Capital Forecast ............. 32 C. City-Wide Residential ($/Capita) and Non-Residential ($/Square Metre) DCs .................................................................................... 34 D. Proposed Development Charges: City-Wide and Area-Specific Residential and Non-Residential DCs (IGB, OGB and Rural) ....... 34 E. Comparison of Proposed and Existing DCs for City-Wide and Area- Specific DCs (IGB, OGB and Rural).............................................. 43 F. Calculated Area-Specific DCs: Special Area Charges .................. 43 VII Cost of Growth Analysis ..................................................................... 50 A. Public Transit ................................................................................ 50 B. All Other Services (Excluding Public Transit) ................................ 50 C. Projects are Deemed to be Financially Sustainable ...................... 51 VIII Development Charges Administration & Policy Considerations .... 52 A. Development Charges Consultation and Approval Process .......... 52 B. City-Wide vs. Area-Specific Charges ............................................ 52 C. Other Policy Considerations .......................................................... 52 D. Summary of Preliminary Recommendations ................................. 53 HEMSON List of Appendices A.1 Development Forecast .......................................................................... 55 A.2 Public Transit Ridership Forecast ......................................................... 88 B. Public Transit Technical Appendix ........................................................ 97 C.1 Protection ............................................................................................ 115 C.2 Parks Development ............................................................................. 130 C.3 Recreation Facilities ............................................................................ 141 C.4 Libraries .............................................................................................. 152 C.5 Paramedic Services ............................................................................ 163 C.6 Affordable Housing .............................................................................. 175 C.7 Corporate Studies ............................................................................... 183 D.1 Millennium Park (District Park) ............................................................ 194 D.2 Village of Manotick (Sanitary Sewer & Water) ..................................... 201 D.3 Village of Richmond (Sanitary Sewer) ................................................. 214 D.4 Provence Avenue (Sanitary Sewer & Roads) ...................................... 223 D.5 Flag Station Road (Roads) .................................................................. 231 D.6 Trillium Line Extension (Public Transit) ............................................... 239 E.1 Roads and Related ............................................................................. 252 E.2 Sanitary (Waste Water) ....................................................................... 275 E.3 Water .................................................................................................. 286 E.4 Stormwater Drainage .......................................................................... 296 F. Reserve Fund Balances ...................................................................... 302 G. Public Transit Services Cost of Growth Analysis ................................. 307 H. Cost of Growth Analysis – All Services Excluding Public Transit ........ 344 I. 2019 Draft DC By-law (Available Under Separate Cover) ................... 394 HEMSON 1 I LIST OF ACRONYMS AMP Asset Management Plan BTE Benefit to Existing BRT Bus Rapid Transit COG Cost of Growth DCA Development Charges Act DC Development Charges LRT Light Rapid Transit LRFP Long Range Financial Plan IGB Inside the Greenbelt IMP Infrastructure Master Plan OGB Outside the Greenbelt PPB Post-period Benefit PPU Persons Per Unit SWM Stormwater Management TMP Transportation Master Plan HEMSON 2 Executive Summary A. Purpose of 2019 Development Charges (DC) Background Study 1. Legislative Context This City of Ottawa 2019 City-wide Development Charges (DC) Background Study (herein referred to at the “2019 DC Study”) is presented as part of the process to lead to the approval of new DC by-laws in compliance with the Development Charges Act, 1997 (DCA). The study is prepared in accordance with the DCA and associated regulations, including the amendments that came into force on January 1, 2016. 2. The 2019 City-wide DC Background Study is intended to be an Interim Update The analysis contained herein is generally consistent with the projects and calculation methodologies included in the 2014 and 2017 DC Background Studies. The City has not completed a comprehensive update to the 2013 Transportation Master Plan (TMP) and Infrastructure Master Plan (IMP), and as such the capital costs and development forecasts are generally consistent with these documents which were used as the basis for the City’s past DC Background Studies. It is anticipated that the City’s next DC Background Study will be completed once relevant master plans and capital planning documents have been updated. 3. Key Steps in Determining Future Development-Related Projects In accordance with the DCA and associated regulation, several key steps are required to calculate development charges. This includes preparing a development forecast, establishing historical service levels, determining the increase needs for services arising from development and appropriate shares of costs, attribution to development types (i.e. residential and non-residential). For some services, the final adjustment to the calculated rate of a cash flow analysis. 4. DC Eligible and Ineligible Costs Development charges are intended to pay for the initial round of capital costs needed to service new development over an identified planning period. This is based on the overlaying principle that “growth pays for growth”. However, the DCA and associated regulation includes several statutory adjustments and HEMSON