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REPORT RAPPORT |
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REPORT RAPPORT |
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DATE:
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26 May 2014 |
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TO:
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Executive Director, Ottawa Police Services Board |
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FROM:
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Chief of Police |
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SUBJECT: |
2014-2024 DEVELOPMENT CHARGE REVIEW –OTTAWA POLICE SERVICE |
RECOMMENDATION
That the Ottawa Police Service Board approve the capital requirements submitted to the City for inclusion in the 2014 City Development Charge.
Municipalities have for many years levied development charges (DCs) on new residential, commercial and industrial development. These charges are intended to finance the cost of capital projects undertaken by the municipality in order to service new growth. In this way the capital cost of growth is bourn by the new residents who enjoy the benefits of the related capital works, and a minimum of these costs are passed onto existing ratepayers.
Last year, the City of Ottawa initiated the preparation of a “Development Charge Background Study” as required under provincial development charge legislation. The completion of a background study is one of the major steps in bringing a revised development charge by-law forward to Council for approval. Based on a population forecast, the study outlines the capital requirements necessary to support the expected growth. It also outlines the “quantum” of the charge that must be levied on each unit or each square foot of commercial/industrial space to finance this growth.
Since June 2013, staff has worked with the City’s development charge team, and its methodology, to determine standards and formulate a capital work plan for inclusion in the charge. The results of this work form part of the charge itself and have been included as part of the documentation used in the public consultation process. The Board must now formally approve the standards and the capital work plan.
DISCUSSION
Executive Summary
The significant aspects of the Ottawa Police Service (OPS) development charge review are summarized below. The study establishes the basis for inclusion of $40.2m of growth funding for the Huntmar and South facilities under the Protective category of the charge.
· The estimated level of the Protective portion of development charge for a single family dwelling ranges from $445 (inside the Greenbelt) to $644 (Rural) to $953 (outside the Greenbelt) depending on where the unit is situated.
Table 1 – City of Ottawa10-year Population Forecast
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Area |
2014 |
2024 |
Increase |
% Change |
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Inside the Greenbelt |
529,497 |
570,377 |
40,880 |
7.7% |
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Urban Centres Outside Greenbelt |
325,753 |
388,588 |
62,835 |
19.2% |
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Rural |
93,630 |
105,090 |
11,460 |
12.2% |
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Total |
948,880 |
1,064,055 |
115,175 |
12.1% |
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Population Growth Forecast
The population forecast underlying the City's Development Charge Study covers a 10-year period from 2014 to 2024. As Table 1 shows, under the forecast the City will grow by 115,175 people from a level of 948,880 in 2014 to 1,064,055 by the year 2024, an overall increase of 12.1%.
This is a similar forecast to the previous study done in 2008-2009 and those used to develop the OPS 17 Year Facility Strategic Plan. Inside the Greenbelt will see a growth rate of 7.7%, with growth climbing to a rate of 12.2% in the rural areas. The largest increase occurs in the urban centres outside the Greenbelt where growth is forecast to be 19.2%.
The New “Protective” Category
Though used in other municipalities in Ontario, the current study marks the first time that the Fire and Police service groups have been combined to form the “Protection” category of the charge. Using this innovative approach, development charges can be effectively maximized and shared between Fire and Police.
Capital Standards
An important component of the study is to determine the capital standards upon which the development charge rate will be based. Under the DC legislation, the municipality can levy for future capital growth based on a "10-year average" standard.
Facility Standard – Annex A
In consultation with Police Facilities and RPAM staff, data has been gathered on the square footage of OPS facilities over the past 10 years. During this period, the average square footage of owned and leased facilities is approximately 418,609 square feet. The average population was 895,968 residents.
The quantity standard for each of the last 10 years is calculated by dividing the facilities square footage by the average population, and multiplying by the quality standard (cost per square foot) of $411.33. As required by DC legislation, this quality standard reflects the calibre and value of existing facilities. Applying the DC amount to the forecasted population increase, of 115,175 yields an eligible DC amount for facilities that totals $22.1 million.
Patrol Vehicle Standard - Annex B
As per the last DC study, patrol vehicles are permitted to be included in the study because their lifespan can be calculated as being 9 to 12 years based on the number of hours that the vehicle is actually in use (24 hrs per day, 7 days a week over the course of the 3 to 4 year useful life).
OPS staff has estimated that the cost to purchase and up-fit a patrol vehicle is $35,000. Over the last ten years, the average number of patrol vehicles in the fleet has been 436 cars, dividing this by the average population creates a quantity standard of 0.4813 cars per 1000 persons. Based on $35,000 per vehicle the combined quality/quantity standard patrol vehicles is $16.85 per capita, applied to the population growth (115,175), provides an eligible DC funding amount of $1.9 million.
Specialty Vehicle Standard – Annex C
Specialty vehicles with a lifespan longer than 7 years have been included in the DC review. These vehicles include the Surveillance Aircraft, the Mobile Command Post, the Tactical Operations Unit, the Explosive Devices Unit, Prisoner Transport trucks, Mail Services vans and other similar vehicles. Under the DC legislation, the municipality can levy for future capital growth based on a "10 year average" standard.
Based on the current complement of Specialty Vehicles, OPS staff has estimated the value of these assets at $2.43 per capita. Applying the forecasted increase in population (115,175) to the cost per capita yields an eligible DC amount for Specialty Vehicles of $280K.
Officer Up-fit Standard – Annex D
Protective equipment is required by new officers to safely perform their duties. Development Charge funding has been identified to up-fit officers with protective vests, weapons and batons.
OPS staff has estimated the cost to equip officers with the listed items at $1,500 per new officer. Based on the average sworn complement and average population over the last 10 years, the quantity standard is 1.4438 officers per 1000 residents, creating combined quantity/quality standard of a $2.17 per capita. Applying this cost to the population growth increase yields an eligible DC amount for Officer Up-Fit of $249K.
Portable Radio – Annex E
Similarly, portable radios will be required to provide a communications platform for new officer in the performance of their duties.
OPS staff has estimated the cost to equip these officers with radios at $6,000 per officer. Applying this cost to the quantity standard of 1.2959 radios per 1000 residents creates a combined quantity/quality standard of $7.78 per capita, yielding an eligible DC amount for Portable Radios of $896K.
Protective Service Level Cap
The Service Level Cap is the maximum amount of funding that the Protective Service category is eligible for under the Development Charge, given the standards and the growth forecast. It totals $60.2 m. Table 2 shows how each category of asset contributes to the total amount.
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Table 2 – Protective Service Level Cap |
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Asset Type |
Police Eligible DC Amount ($m) |
Fire Eligible DC Amount ($m) |
Protective Service Level Cap ($m) |
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Buildings |
$22.1 |
$23.2 |
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Vehicles |
1.9 |
9.8 |
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Equipment |
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1.7 |
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Specialty Vehicles |
0.3 |
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New Officer Upfit |
0.3 |
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Portable Radios |
0.9 |
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Total |
$25.5 |
$34.7 |
$60.2 |
Eligible Projects: City-Wide vs Area-Specific (Annexes F and G)
Another component of the study is to identify the specific capital projects which are eligible for development charge funding, determine the growth related portion of the project and categorize them as either Area-Specific or City-Wide, depending on the benefits offered.
City-Wide Development Charge projects are those of benefit to the entire City. The growth component of these projects is cost-shared at the same rate throughout all regions of the City.
The only project included in the City-Wide Charge in this study is the South Divisional Facility, which has been re-categorized from Area-Specific based on the change in planned functionality of this building (Annex F). In addition to supporting the activities of the Patrol Services Directorate in the south area of Ottawa, it will now also serve the city-wide functions of the Emergency Operations and Support Services Directorates. A total of $30.2 m has been included in the charge for this project as shown in Table 3.
Area Specific Development Charge projects represent those offering a benefit to or serving a specific geographical area of the City of Ottawa. The only project included in an Area-Specific Charge in this study is the Huntmar Facility (Annex G). A total of $10.0 m has been included in the charge for this project as shown in Table 3.
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Table 3 - Summary of DC Funding |
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Projects |
Growth Cost Eligible for DC Funding ($m) |
Police - City Wide |
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South Divisional Facility |
$22.5 |
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South Divisional Facility Debt Payments Principal |
3.4 |
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South Divisional Facility Debt Payments Interest |
4.3 |
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Sub-Total |
$30.2 |
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Police - Area Specific |
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Facility Acquisition West Debt Payments Principal |
8.7 |
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Facility Acquisition West Debt Payments Interest |
1.3 |
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Sub-Total |
$10.0 |
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Police |
$40.2 |
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Fire |
$12.0 |
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Protective |
$52.2 |
Total DC Funding
The capital standards, the growth forecast and the growth projects qualifying for funding result in an overall Protective development charge requirement of $52.2m. Of the total, $40.2m results from the needs of Ottawa Police. Fire accounts for the remainder of $12.0m.
The approach of combining the Fire and Police standards into one called Protective has been very beneficial to OPS. Under this approach OPS qualifies for access to $40.2m of development charge funding for the growth projects, which is roughly $15m higher than under the old approach. Adjustments will be made to the 2015 capital budget submission for the South Divisional Facility to reflect this change.
The Protective component will become a more significant part of the DC in this study. The estimated level for a single family dwelling ranges generally from $445 (inside the Greenbelt) to $644 (Rural) to $953 (outside the Greenbelt) depending on where the unit is situated.
City staff have undertaken a comprehensive public consultation process as required under the legislation. The key dates are outlined below. The development community has been extensively involved in a review of the assumptions underlying the charge, including those submitted by the Ottawa Police Service. The study has been tabled and public meetings have been held to seek input from all stakeholders. The City committee review process has also provided opportunities for public input. The by-law enacting the new charge is scheduled for adoption by Council on 11 June 2014.
The South Division Facility capital project cited within the Development Charge study will be included in the capital budget and forecast that is submitted annually to the Board for review and approval, with funding sources aligned to reflect the contribution from development charges.
This study marks the first time that Police and Fire Services have been combined into one category under the DC study. City staff championed the introduction of this approach which helps to effectively maximize and share development charges between the two services. They are to be commended for their innovation and ingenuity.
Board approval of this report formally confirms the standards used in the DC study and is the basis on which key growth related capital projects can be included in the 2014 City of Ottawa Development Charge. Based on the growth assumptions described in this report, development charges could contribute up to $40.1 million of funding over the next ten-years to support the financing plans for the Huntmar Station and the South Division Facility.
(original signed by)
Charles Bordeleau
Chief of Police
Attach. (1)
Responsible for Report: Director General Debra Frazer
