2015 ASSESSMENT GROWTH BUSINESS CASE OVERVIEW REQUEST BY SERVICE PROGRAM. Funding Required for Growth ($) Program # Service Grouping

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1 2015 ASSESSMENT GROWTH BUSINESS CASE OVERVIEW REQUEST BY SERVICE PROGRAM Case Funding Required for Growth ($) Program # Service Grouping Operating Capital Total FTE ECONOMIC PROSPERITY Business Attraction and Retention 1 Community Improvement - Development Charges Incentive Program - In 2,950,000-2,950,000 - preparation for the new Development Charges (DC) By-law (August 4, 2014), the policy for financing DC exemptions was revised. Going forward, all former DC exemptions will be provided through grants under a Community Improvement Plan (CIP). Under the new financing approach, funding for DC exemptions is required at the time of building permit. Under the old financing method, funding was required at the time of construction for support projects. Because of the shift in timing, additional funding is required to support the DC exemptions. The budget required to support these grants was based on forecasted growth. TOTAL ECONOMIC PROSPERITY 2,950,000-2,950,000 - ENVIRONMENTAL SERVICES Garbage, Recycling and Composting 2 Leaf and Yard Composting (Contracted Service) - Fall leaves and yard 15,000-15,000 - materials are expected to increase by approximately 300 tonnes (1.5%) from the addition of new homes. 3 Recycling Collection (Contracted Service) - An increase of 1,400 curbside 58,000-58,000 - stops and 600 multi-residential stops are required to service collection for newly constructed homes. 4 Garbage Collection - An increase of 1,400 curbside stops and 600 multiresidential 187,000 70, , stops are required to service collection for newly constructed homes. As a result of this growth, an additional garbage truck is required Draft Budget for the City of London - December 8, 2014 Page 1161

2 2015 ASSESSMENT GROWTH BUSINESS CASE OVERVIEW REQUEST BY SERVICE PROGRAM Case Funding Required for Growth ($) Program # Service Grouping Operating Capital Total FTE 5 Garbage Disposal - An increase of 1,400 tonnes of waste is expected from 21,000-21,000 - growth which requires an increase in the contribution to Sanitary Landfill Reserve Fund for capital costs. TOTAL ENVIRONMENTAL SERVICES 281,000 70, , PARKS, RECREATION & NEIGHBOURHOOD SERVICES Neighbourhood & Recreation Services 6 Community Centres - A full time position is required to adequately assist in 89,000-89, the planning and coordination of the new Southwest Recreation Centre. Funding is to support this position which is an integral part of the start-up development of the new facility and preparation of new agreements with partners in the project. The position will continue when the new centre opens to support operations. Parks & Urban Forestry 7 Parks & Horticulture - Additional resources are required to service new parks, 266, , , the Thames Valley Parkway (TVP) and horticultural features acquired through growth of new parks totalling approximately 41 hectares. 8 Urban Forestry (Contracted Service) - Increase of approximately 4,000 new 52,000-52,000 - trees planted in new parks, recently assumed subdivisions, infill and for community planning. These new plantings are maintained by Forestry operations. TOTAL PARKS, RECREATION & NEIGHBOURHOOD SERVICES 407, , , Draft Budget for the City of London - December 8, 2014 Page 1162

3 2015 ASSESSMENT GROWTH BUSINESS CASE OVERVIEW REQUEST BY SERVICE PROGRAM Case Funding Required for Growth ($) Program # Service Grouping Operating Capital Total FTE PLANNING & DEVELOPMENT Development Services 9 Development Services - The Official Plan residential intensification policies 89,036-89, have generated an additional 10 to 15 new site plan applications per year. Beyond 2014, pent up residential and commercial development within the South West Area Plan (SWAP) is projected to generate increased workload to process minor variances, site plans, consents, condominiums, and subdivisions. 10 Development Services - Development Approvals requires additional 88,250-88, resources to address growth related initiatives such as SWAP, intensification, DC Rate Adjustment, and the "London Plan". Overall, the workload resulting from growth related responsibilities and implementation of planning policies is estimated to require an additional 1,322 engineering liaison and coordination working hours & 425 hours in growth related policy initiatives. TOTAL PLANNING & DEVELOPMENT 177, , PROTECTIVE SERVICES Corporate Security & Emergency Management 11 Corporate Security - City of London Corporate Security staff respond to 110, , approximately 3,500 incidents per year, growing at about 300+ incidents annually. As a result of the growth in insured city owned locations and an increase in property acquisitions, corporate security has seen a corresponding growth incidents requiring their service. TOTAL PROTECTIVE SERVICES 110, , Draft Budget for the City of London - December 8, 2014 Page 1163

4 2015 ASSESSMENT GROWTH BUSINESS CASE OVERVIEW REQUEST BY SERVICE PROGRAM Case Funding Required for Growth ($) Program # Service Grouping Operating Capital Total FTE TRANSPORTATION SERVICES Public Transit 12 Conventional and Specialized (Contracted Service) Transit Services - 556,500 1,273,300 1,829, Funding for conventional transit (FTE impact 10.0) is required to increase service hours to accommodate growth from population and development. Funding for specialized transit is required to accommodate growth in eligible registrants attributable to population growth and demographic changes. Roadways 13 Roadway Maintenance, Road and Sidewalk Snow Control (Both Contracted 285, , , and City Supplied Service) - Funding is required to service the increase of 31 lane kms of road and 23 km of sidewalk from assumed subdivisions, warranted sidewalk program, walkways, ditches, boulevards, downtown maintenance and roadside maintenance. Additional funding is required to provide winter control services to those areas. Capital funding required for life cycle renewal costs for added kilometers of road and sidewalk. 14 Roadway Planning & Design (Both Contracted and City Supplied Service) - 230, , The Transportation Growth program enables development by providing the municipal transportation infrastructure required for the resulting additional traffic generation. The average Transportation Growth Program capital expenditure is set to almost double from $23.3 million annually (past five years) to $42.1 million annually in the coming five years. It is anticipated that an additional 5,692 program delivery hours will be required necessitating at least an additional 2.0 FTEs Draft Budget for the City of London - December 8, 2014 Page 1164

5 2015 ASSESSMENT GROWTH BUSINESS CASE OVERVIEW REQUEST BY SERVICE PROGRAM Case Funding Required for Growth ($) Program # Service Grouping Operating Capital Total FTE 15 Street Light Maintenance (Contracted Service) - Funding is requested for 76,800-76,800 - maintenance and energy costs of street lights added to accommodate growth as new subdivision streets are assumed, 400 street lights. 16 Traffic Signal Maintenance (Contracted Service) - Funding is requested for 13,184-13,184 - maintenance and energy costs of traffic signals added to accommodate growth as new subdivision streets are assumed, 2 traffic signals. 17 School Crossing Guards (Contracted Service) - In accordance with Municipal 29,310-29,310 - Council's approved warrant system for mid-block cross walks and intersections, it is anticipated that 3 new crossing guard locations will be added. TOTAL TRANSPORTATION SERVICES 1,191,656 1,731,976 2,923, CORPORATE, OPERATIONAL & COUNCIL SERVICES Corporate Services 18 Growth Flow Through Costs - As a result of the timing of hiring in 2014, full 378, ,545 - year funding was not required for FTE's attributable to growth for With staffing now in place, full year funding is required for TOTAL CORPORATE, OPERATIONAL & COUNCIL SERVICES 378, ,545 - TOTAL 5,495,831 1,980,976 7,476, Draft Budget for the City of London - December 8, 2014 Page 1165

6 Assessment Growth Business Case #1 Service Grouping Service/Program Background/Description of Change Business Attraction and Retention Community Improvement Implementation of Approved Development Charge Incentive Programs: 2014 Development Charge By-law Exemptions and Community Improvement Plan Grants 1. Background (see additional information below) a) Area Currently Served by Unit of Measure - City-wide b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# $9.8 million Not applicable Not applicable c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Not applicable d) If this is a Contracted Service, what is the Percentage Contracted Out? Not applicable e) Assets Currently Used to Provide Service Not applicable 2. Request a) Growth Area by Unit of Measure - City-wide b) Impact of Growth Staffing Not applicable c) Impact of Growth Costs d) Impact on Assets Used to Provide Service Not applicable Operating $2.95 million Capital Cost of Incremental Assets $0 Total Growth Request $2.95 million 2015 Draft Budget for the City of London - December 8, 2014 Page 1166

7 Background In preparation for the new Development Charges (DC) By-law (August 4, 2014), the policy for financing DC exemptions was revised. DC exemption-type programs will continue to be administered by Building Division (upon application for permit for qualifying development) and tracking will be conducted by Development Finance and Financial Planning and Policy. The Planning Division will report on the efficacy of the Downtown Residential and Industrial DC grant programs. Same program, changing the tool: In September 2013, Council approved the change in tools for accounting for development charge incentives from funding Industrial and Institutional DC exemptions through capital budgets, to a more transparent and equitable method. Going forward, all former DC exemptions will be provided through grants under a Community Improvement Plan (CIP) (consistent with approval of the recommendations of the Strategic Change in Delivery of Development Charge Exemptions and Incentive Policies SPPC, August 26, 2013) (see figure below). The change will have the following benefits: Improved strategic approach to providing incentives; Additional flexibility for program management; Enhanced monitoring and improved transparency; Program evaluation opportunities and improved accountability; and, Establishes equity with private sector timing of funding of investments in growth Draft Budget for the City of London - December 8, 2014 Page 1167

8 Programs have been approved by Council: Following the September 2013 approval, the City Planner tabled proposals for CIP DC grants for the Downtown/Old East Village residential buildings and Industrial buildings, city-wide. These initial proposals included financial limitations on the amount of grant funding that would be made available for the grant programs. After extensive community stakeholder discussions and deliberation by Council, the financial limitations for the programs were removed to stimulate the maximum amount of development qualifying under the programs. The Industrial Lands CIP was approved by Council in June 2013 ( Industrial Lands Community Improvement Plan PEC, June 3, 2014) and CIP changes for the Downtown/Old East Village will be presented for Council approval in Fall DC By-law approval: On June 24, 2014, Council approved the 2014 Development Charges By-law. The By-law contained the continuation of the 50% City Services Reserve Fund institutional discount from the previous DC By-law. In addition, Council determined that the calculated commercial DC rate would be phased in over a 5 year period, with a reduced rate subsidized by taxpayer contributions Draft Budget for the City of London - December 8, 2014 Page 1168

9 DC Act required exemptions: In addition to Council s development charge incentives, the Development Charges Act requires several exemptions that must be funded by taxpayer-supported contributions. These include the following: Buildings owned by a school board; Municipal buildings; and, Industrial additions <50% (the City extends this exemption to cover all industrial building additions). Budget estimates based on forecasted growth: Staff has based the required funding for this business case on the Councilapproved Altus growth forecasts for the industrial and institutional incentives. Funding for the commercial DC rate phase-in is based on space forecasts prepared by the Building Division, which are higher than the Altus commercial space projections (and therefore, reflects a more conservative approach to incentive funding). For the Downtown/Old East Village DC grant, the budget estimates are based on an average annual apartment growth in the Downtown and Old East Village areas over the past 5 years. It should be noted that these budget figures are estimates the Council-approved direction for the programs requires the City to pay for the DCs for any qualifying development. Therefore, actual cost of the programs will vary, depending on the amount of annual growth in the DC discounted categories Downtown Residential, Industrial, Institutional, and Commercial. Budget estimates for the programs are as follows: 2015 Growth (Units/sqm) 2015 Budget 2016 Growth (Units/sqm) 2016 Budget 2017 Growth (Units/sqm) 2017 Budget 2018 Growth (Units/sqm) 2018 Budget Industrial DC Incentives 45,855 $7.7 M 45,855 $7.7 M 45,855 $7.7 M 45,855 $7.7 M Downtown/Old East Village 158 $2.4 M 158 $2.4 M 158 $2.4 M 158 $2.4 M DC Incentives Institutional DC Incentives 34,977 $3.7 M 34,977 $3.7 M 34,977 $3.7 M 34,977 $3.7 M Commercial DC Rate 18,000 $824 K 18,000 $604 K 18,000 $402 K 18,000 $201 K Phase-in Total $14.6 M $14.4 M $14.2 M $14.0 M These budget figures are not entirely incremental to previous needs. Rather, there is a combination of both: A shift in amounts previously funded from taxpayer and water/sewer user rate financing sources that were directed to funding the Industrial, and Institutional exemptions through capital levy and contributions to Industrial Oversizing Reserve Fund; 2015 Draft Budget for the City of London - December 8, 2014 Page 1169

10 An increase in the investment in infrastructure to serve Industrial and Institutional development (both in terms of areas being serviced and cost of growth infrastructure); An increase in the cost of the program to incent residential development in the Downtown and Old East Village programs. Budget Estimate for DC Incentives: $14.60 M Capital Funding Through Old Financing Method (Carry Forward): $9.30 M Required Contribution to DC Incentive Reserve Funds: $5.30 M 2015 Budget Request Assessment Growth Business Case Funding Request: $2.95 M Contribution Shortfall (Program Funding Risk): $2.35 M If requests for building permits in 2015 exactly match the growth projections included in the DC Background Study, then the Corporation will not be able to transfer the entire required funding to the DC reserve funds in The shortfall would be $1.85 million. However, given the amount of budgeted capital funding being carried forward, the lumpy nature of development and slower than anticipated growth due to challenges in the local economy, Staff are of the opinion that fully funding contributions to the DC incentive reserve funds for 2015 will not be required. According to the 2014 DC By-law (section 26.4) and the proposed program guidelines for the Downtown and Old East Community Improvement Plans, the Corporation can delay funding the DC reserve funds for DC exemptions until funding is available. Development Finance and Financial Planning & Policy will monitor the balances and adjust future year contributions to the DC Incentive reserve funds accordingly Draft Budget for the City of London - December 8, 2014 Page 1170

11 There are a number of factors that confound comparison of this budget request to previous budgets: Industrial CIP Grants/DC exemption (as outlined in the Industrial Lands CIP PEC Report): The previous funding approach paid for the growth share of industrial capital projects at the time of construction. Several of the City s industrial parks were developed many years before building construction occurred; as such, major investments were made in previous years as upfront costs associated with the DC exemption, with fewer major industrial infrastructure projects constructed in recent years. Reductions in contributions to capital levy should be apparent. Going forward, the City s contributions towards incenting industrial growth will coincide with when industrial building construction occurs. Industrial infrastructure projects benefitted from grants/stimulus funding from senior governments over the past five years. The 2014 DC rate calculations did not include any certainty of similar grants for future industrial projects. Costs for growth incentives would be reduced in the long term, should the City receive funding from senior levels of government. Estimates of the cost of the previous industrial exemption program costs (provided in the Industrial CIP Report to PEC) do not include all taxpayer-supported debt associated with these projects, some of which is still outstanding. As these debt obligations are extinguished, tax supported debt payments will decline, resulting in favourable impacts on future budgets. In contrast, the CIP grant based on the industrial DC rate already includes costs associated with debt that was incorporated into the industrial DC rate calculations. The projected cost of the DC grant program reflects increased construction costs associated with major roads, sanitary sewers, stormwater management facilities, etc. Additionally, future industrial growth is anticipated in areas of the city lacking full municipal services, resulting in high costs of extending these services Draft Budget for the City of London - December 8, 2014 Page 1171

12 Downtown/Old East Village CIP grants: This is the only part of the program that can be directly compared to previous contributions, as the basis for funding the exemptions in this DC exemption area remains unchanged. The provision for funding for this part of the program will have increased over the previous year for two reasons: Increased DC rate: Development charge rates for one and two bedroom apartment buildings have increased since the previous DC Study; as a result, the program costs will increase. Increased volume: Strong interest is anticipated for residential development in the Downtown and Old East Village as a result of changing demographics and market interest in this area. Institutional DC discount: Like the funding of the Industrial share of growth works, growth costs associated with the institutional DC discounts in the previous DC By-law are difficult to determine based on the method of financing the incentive (payment of institutional growth share for capital projects). The new basis of accounting for growth costs represents a paradigm shift. There is no apples to apples comparison of past Institutional exemption costs and this budget provision for a contribution to a reserve fund. Commercial DC rate phase-in: The commercial rate phase-in is a completely new program that did not exist in the previous DC By-law. It is a new program that requires new funding. In summary: This initiative is the result of already approved changes to how the City accounts for exemptions and discounts in the funding of its growth program. This budget provision is for a contribution to reserve funds. The funds will only be spent if the incentive programs have their desired effects of incenting development in the various target areas (Downtown Residential, Industrial, Institutional and Commercial development). This program represents a paradigm shift in how the City accounts for the cost of growth for types of development that are exempted or discounted from paying development charges. There is no basis for an apples to apples comparison of this contribution and the past basis of budgeting for growth costs associated through individual capital budgets, which exempted and discounted growth Draft Budget for the City of London - December 8, 2014 Page 1172

13 Improved performance measurement: In the past, the City has not had performance measures associated with its DC exemptions. This is one of the principal reasons for moving from DC exemptions to Community Improvement Plan grants. The recently approved Industrial CIP contains a requirement for staff to report annually to Council on the following measures: Number of applications; DC grant amount ($); Value of construction project ($); Hectares of land development/redeveloped; Square footage of industrial space created by type and sector; Increase in assessed value of participating property; and, Increase in municipal and education property taxes of participating property. As the CIPs are completed for the remaining DC exemptions, performance measures and reporting will be similarly introduced to better inform Council and the public of the results of their investment in incenting desired forms of development. Business cases in future years will provide results associated with the performance measures for the CIP DC grant programs. In the absence of performance measures, staff will report on the cost of the program and quantity of development supported (i.e., for Institutional and Commercial development discounts). Risk of underfunding the program: The DC incentive programs are open-ended obligations to pay the value of DCs for qualifying development (e.g., new industrial buildings, residential units in the Downtown, commercial rate phase-in, etc.). Staff have used the best available data to estimate anticipated growth and the resulting program costs. If the DC incentive programs are underfunded, however, there is risk that a post-budget approval financing source will need to be located to pay for subsidized development charges. At the same time however, depletion of the existing reserve fund would be an indication of a vibrant economic response to the incentives. Implications of exceeding the growth forecast: Although the growth forecast is an annual straight line forecast, growth benefiting from these programs tends to be lumpy in nature. There are likely to be years with large amounts of development, followed by years that have limited activity. The annual contributions to the reserve funds should result in a build-up of funding in order to cover costs associated with peak program demand years. Should growth continue to exceed the forecast, however, additional post-budget approval financing sources will be required to cover the City s obligation to pay for DCs for qualifying forms of development Draft Budget for the City of London - December 8, 2014 Page 1173

14 Assessment Growth Business Case #2 Service Grouping Service/Program Background/Description of Change Garbage, Composting and Recycling Leaf and Yard Composting The City collects yard materials and fall leaves from homes. These materials can also be dropped off at the EnviroDepots. The amount of these materials is expected to grow by 1% to 2% per year based on both the natural vegetative growth within the city and as new homes are constructed. These materials are composted under contract. 1. Background a) Area Currently Served by Unit of Measure Composting of yard materials and fall leafs is provided to 119,000 curbside homes. Approximately 18,000 tonnes of material are composted annually. b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# $1,437,000 (excluding collection) c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $50 per tonne (contracted price) Not applicable Unit of Measure FTE d) If this is a Contracted Service, what is the Percentage Contracted Out? 90% of this service is contracted out. e) Assets Currently Used to Provide Service None 2015 Draft Budget for the City of London - December 8, 2014 Page 1174

15 2. Request a) Growth Area by Unit of Measure Yard materials and fall leaves are expected to increase approximately 300 tonnes (1.5% of 18,000 tonnes) in Composting of yard materials and fall leaves is a contracted service. Contracted price is approximately $50 per tonne for yard materials and fall leaves. b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs 0 0 $0 Operating (Growth area x unit of measure cost of service) $15,000 Capital Cost of Incremental Assets Not applicable Total Growth Request $15,000 d) Impact on Assets Used to Provide Service Not applicable 2015 Draft Budget for the City of London - December 8, 2014 Page 1175

16 Assessment Growth Business Case #3 Service Grouping Service/Program Background/Description of Change Garbage, Composting and Recycling Recycling Collection Every year collection of recyclables must be expanded to include newly constructed homes that receive curbside collection and multi-residential units that receive multiresidential collection. These materials are collected under contract. 1. Background a) Area Currently Served by Unit of Measure Currently providing recycling collection to 119,000 curbside collection stops and 52,000 multi-residential collection stops. b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Gross Cost FT# FTE# $5,050, c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $37 per curbside stop and $10.80 per multi-residential unit Not applicable Unit of Measure FTE d) If this is a Contracted Service, what is the Percentage Contracted Out? 100% of this service is contracted out. e) Assets Currently Used to Provide Service None 2015 Draft Budget for the City of London - December 8, 2014 Page 1176

17 2. Request a) Growth Area by Unit of Measure Expect to add approximately 1,400 curbside stops and 600 multi-residential stops in Contracted price for collection is $37.00 per curbside stop and $10.80 per multi-residential stop. b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs 0 0 $0 Operating (Growth area x unit of measure cost of service) $58,000 Capital Cost of Incremental Assets Not applicable Total Growth Request $58,000 d) Impact on Assets Used to Provide Service Not applicable 2015 Draft Budget for the City of London - December 8, 2014 Page 1177

18 Assessment Growth Business Case #4 Service Grouping Service/Program Background/Description of Change Garbage, Composting and Recycling Garbage Collection Every year collection of garbage, yard materials and fall leaves must be expanded to include newly constructed homes that receive curbside collection and multi-residential units that receive multi-residential collection. These materials are primarily collected by City forces. 1. Background a) Area Currently Served by Unit of Measure Currently providing garbage collection to 119,000 curbside collection stops and 52,000 multi-residential collection stops. b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# $7,760, c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $43 per curbside stop and $33 per multi-residential unit 2,300 housing units per FTE d) If this is a Contracted Service, what is the Percentage Contracted Out? 3% of this service is contracted out. e) Assets Currently Used to Provide Service Garbage collection vehicles. Unit of Measure FTE 2015 Draft Budget for the City of London - December 8, 2014 Page 1178

19 2. Request a) Growth Area by Unit of Measure Expect to add approximately 1,400 curbside stops and 600 multi-residential stops in The incremental additional cost of adding one curbside stop is estimated to be $43 and adding one multi-residential stop is $33. An additional garbage truck is added to the fleet on a periodic basis in order to service new stops. It has been over ten years since the garbage truck fleet has been expanded. Funds were initially set aside to purchase a rear load packer in Purchase of the rear load packer was delayed because of optimization of the curbside collection system. The number of overhead loading packers will need to be increased in 2015 because of growth in multi-residential collection. Additional funds ($70,000) are required because overhead loading packers are more expensive than rear load packers and inflation has increased the costs of all trucks b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs $20,000 Operating (Growth area x unit of measure cost of service) $ 80,000 $107,000 internal rental rate Capital Cost of Incremental Assets $ 70,000 Total Growth Request $257,000 d) Impact on Assets Used to Provide Service Additional packer added to fleet Draft Budget for the City of London - December 8, 2014 Page 1179

20 Assessment Growth Business Case #5 Service Grouping Service/Program Background/Description of Change Garbage, Composting and Recycling Disposal at W12A Every year long term disposal capacity requirements increase because of newly constructed homes that receive curbside collection, multi-residential units that receive multi-residential collection and waste from City operations serving these areas (e.g., more street sweepings). There is a need to increase the contribution to the Sanitary Landfill Reserve Fund to cover capital costs associated with this growth. 1. Background a) Area Currently Served by Unit of Measure Currently providing garbage disposal services to 119,000 curbside collection stops and 52,000 multi-residential collection stops. Each year approximately 2,000 stops are added which generate about 1,000 tonnes of garbage (0.5 tonnes of garbage per stop). City operations typically bring approximately 35,000 tonnes of waste to the landfill each year and is expected to grow about 400 tonnes per year (1.2% per year). b) Current Cost and Labour for Service or Program Provided Total (Annual) Capital Cost FT# FTE# Varies Not applicable Not applicable c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $15 per tonne Not applicable Unit of Measure FTE d) If this is a Contracted Service, what is the Percentage Contracted Out? 100% of the capital projects at the W12A landfill are contracted out. 65% of the operating budget is expended on contracted or private services at the landfill Draft Budget for the City of London - December 8, 2014 Page 1180

21 e) Assets Currently Used to Provide Service The cost to replace capacity at the W12A landfill and cover long term perpetual care costs is estimated to be $15 per tonne. 2. Request a) Growth Area by Unit of Measure Growth in the City is expected to add approximately 1,400 tonnes of waste in 2015 and require an increase in contributions to the Sanitary Landfill Reserve Fund of $21,000 (1,400 tonnes X $15/tonne). Operating costs are not impacted by this small amount of waste that arrives (i.e., the amount of 5 or 6 tonnes per day) is absorbed into the existing operations therefore no increase in operating dollars are required, rather a contribution to the reserve fund is required. b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs 0 0 $0 Operating (Growth area x unit of measure cost of service) $21,000 Capital Cost of Incremental Assets $0 Total Growth Request $21,000 d) Impact on Assets Used to Provide Service Growth in City has been taken into account when estimating remaining life of landfill Draft Budget for the City of London - December 8, 2014 Page 1181

22 Assessment Growth Business Case #6 Service Grouping Service/Program Background/Description of Change Neighbourhood & Recreation Services Community Centres A full time position is required to adequately assist in the planning and coordination of the new recreation centre planned for southwest London (RC2755). Land has now been acquired and planning work begins in late Fall of This position will be an integral part of the start-up development of the new facility that is required in preparation of the opening of the facility. Preparations include: design planning; public consultations; programming research and design; negotiated agreements with partners in the project. The position will continue when the new centre opens to support operations that specific role being shaped by what management/operational model the City chooses to pursue for the Facility. 1. Background a) Area Currently Served by Unit of Measure One full time position is required to support operations for each Recreation Centre as well as start-up development of the new facility. b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# Not applicable Not applicable Not applicable c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $89,000 (including salary/benefits) 1.0 FTE Unit of Measure FTE 2015 Draft Budget for the City of London - December 8, 2014 Page 1182

23 d) If this is a Contracted Service, what is the Percentage Contracted Out? This is not a contracted service. e) Assets Currently Used to Provide Service Office space, equipment, furniture, computer. This position will support the new Centre when it is fully operational and this specific role will be shaped by what management/operational model the City chooses to pursue for the Facility 2. Request a) Growth Area by Unit of Measure i. The need for a multi-functional South West (SW) Recreation Facility was first identified in the 2003 Parks and Recreation Strategic Master Plan as a short-term priority and re-affirmed in the 2009 Master Plan. ii. Currently there is no indoor swimming pool or larger scale community centre gym and community space complex serving the southwest sector of the City. The Master Plan also calls for the retirement or redevelopment of two current pads of ice in favour of adding a double pad arena as a component of the SW Recreation Centre. iii. This complex facility as conceived will merge pool, gyms, community space, arena with other co-located services as required to serve as both a district destination facility and a local community gathering place. iv. This position will support planning for the facility including participation in facility design, functional plan development, partnership building, sponsorship explorations, programming plans and public consultations. In 2015, this position will be significantly involved in the facility design process informed by functional plan work, the researching transportation/accessibility options, and expected programs and services. This position will also be instrumental in discussions/planning with potential partners around operational agreements and will help support any sponsorship opportunities arising from the project. As time moves on in the pre-opening phase of the building (an opening in 2016 is the Master Plan goal), this position will be engaged in: operational budget development; detailed program plans (recreation programs, rental opportunities, community access plans, special events etc.); detailed operational plans including plans for cleaning. Nearer to opening this position will participate in grand opening planning, marketing strategies to promote opportunities at the facility, and participate in the ongoing management of the facility (either directly - if operated by the City; or as a liaison with the managing partner if such an arrangement is negotiated. v. It should be noted that planning and preparations for the South East Recreation Centre, will be following closely after development of the SW Centre Draft Budget for the City of London - December 8, 2014 Page 1183

24 b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs $89,000 Operating (Growth area x unit of measure cost of service) $89,000 Capital Cost of Incremental Assets $0 Total Growth Request $89,000 d) Impact on Assets Used to Provide Service This position requires a workstation, computer/software and associated furniture Draft Budget for the City of London - December 8, 2014 Page 1184

25 Assessment Growth Business Case #7 Service Grouping Service/Program Background/Description of Change Parks & Urban Forestry Parks & Horticulture The current budget for parks property management is based upon a service level frequency achieved in the In order to maintain the 2014 level of service additional resources are required to service new parks, Thames Valley Parkway and horticultural features acquired through growth and council approved capital projects. A total of 41 hectares (Ha) have been added to the system across the city. Any increase to the amount of maintained park property acquired through growth without the respective funding will erode the current service levels throughout the city. 1. Background a) Area Currently Served by Unit of Measure 1015 Ha of Maintained Parkland b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# $5,850,954 Not applicable c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost Unit of Measure FTE $5, d) If this is a Contracted Service, what is the Percentage Contracted Out? This is not a contracted service Draft Budget for the City of London - December 8, 2014 Page 1185

26 e) Assets Currently Used to Provide Service Internal fleet resources will be increased to account for the additional property management expenses. 2. Request a) Growth Area by Unit of Measure 41 Ha, plus operational costs of capital projects (horticultural roadway planters) previously approved by council. b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs $130,609 Operating (Growth area x unit of measure cost of service) $236,344+$30,000=$266,344 Capital Cost of Incremental Assets $179,000 Total Growth Request $445,344 d) Impact on Assets Used to Provide Service Increase in fleet capacity for park maintenance and horticulture maintenance Draft Budget for the City of London - December 8, 2014 Page 1186

27 Assessment Growth Business Case #8 Service Grouping Service/Program Background/Description of Change Parks & Urban Forestry Forestry Operations Increase in the number of new trees planted in Parks and recently assumed subdivisions. These plantings are added to the overall number of trees planted on public property and are maintained by Forestry Operations. This funding is required to ensure adequate tree health care and to mitigate the risk of hazards due to non-maintained trees. 1. Background a) Area Currently Served by Unit of Measure Over 180,000 boulevard trees b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# $2.5 million c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $13 per tree Not applicable Unit of Measure FTE d) If this is a Contracted Service, what is the Percentage Contracted Out? Based on 2014 approved budget, 15% is contracted out. e) Assets Currently Used to Provide Service City internal fleet and contracted services 2015 Draft Budget for the City of London - December 8, 2014 Page 1187

28 2. Request a) Growth Area by Unit of Measure 4,000 trees 400 for new subdivisions, 2000 infill, 1100 EAB, 300 for new parks and 200 estimated for community planning b) Impact of Growth - Staffing Staffing FT# Staffing FTE# Staffing FTE $ Not applicable Not applicable Not applicable c) Impact of Growth Costs Operating (Growth area x unit of measure cost of service) $52,000 Capital Cost of Incremental Assets $0 Total Growth Request $52,000 d) Impact on Assets Used to Provide Service Contracted services 2015 Draft Budget for the City of London - December 8, 2014 Page 1188

29 Assessment Growth Business Case #9 Service Grouping Service/Program Background/Description of Change Development Services Development Services Hiring of Additional Full Time (FT) Position 1. Background a) Area Currently Served by Unit of Measure Development Services processes applications and implements municipal servicing and design standards for Planning Act processes in the City of London including: plans of subdivision and subdivision agreements; site plan applications and development agreements; condominium applications; consent applications; minor variance applications; and boulevard parking applications. This budget request is for one (1) additional FT position in the Development Services unit of Development & Compliance Services, to meet increased development related activity expected for 2015 and beyond. Planning initiatives are expected to increase application volumes and Development Planning workload in 2015 and beyond: Processing site plan applications and development agreements for residential intensification proposals (including single detached, semi-detached and duplex dwellings), initiated as a result of revised policies in Official Plan Amendment 438. For some applications, this includes public site plan meetings and reports to Planning and Environment Committee. The Official Plan (OP) residential intensification policies have generated an additional 10 to 15 new site plan applications per year. This level of activity is expected to continue since intensification is promoted in the Official Plan as a means of encouraging the efficient use of land and compact urban form. Approval of the Southwest Area Plan (SWAP) by the Ontario Municipal Board on April 29, 2014, which establishes land use designations and policies to guide future development applications in the southwest area of the City. The SWAP encompasses approximately 2,700 hectares including a substantial area where development was previously constrained by an Urban Reserve designation and zoning. This area is now designated for various forms of development and the volume of Planning applications is expected to increase significantly as a result of SWAP coming into force and effect Draft Budget for the City of London - December 8, 2014 Page 1189

30 The new land use designations will facilitate development on approximately 850 hectares that was previously designated and zoned Urban Reserve. Currently, all applications for draft plan of subdivision approvals, condominium approvals, consents, minor variances and site plans are administered, under management direction, by a complement of four (4) Senior Planners, two (2) Planner II s, two (2) Landscape Planners and two (2) Site Plan Officers, each working 1700 hours annually. Total (Annual) Operating Cost FT# FTE# $3,751, b) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $85,336 (including salary/benefits/overhead) 1700 hours Unit of Measure FTE c) If this is a Contracted Service, what is the Percentage Contracted Out? This is not a contracted service. d) Assets Currently Used to Provide Service Office space, equipment, furniture, computer, memberships etc. 2. Request a) Growth Area by Unit of Measure The OP residential intensification policies have generated an additional 10 to 15 new site plan applications per year or 120 person hours. Beyond 2014, pent up residential and commercial development within SWAP is projected to generate an increase over and above current application activity levels. While the level of activity will vary from year to year based on economic conditions and other factors, the projected average annual increase in the number of applications generated each year (above current levels) is identified on the following page: 2015 Draft Budget for the City of London - December 8, 2014 Page 1190

31 Planning Process Expected Increase Average Time per Increased Workload application: Minor Variance 12 new applications 4 hours 48 person hours Site Plan (intensification) 12 new applications 10 hours 540 person hours Site Plan (standard) 45 hours Consents 5 new applications 21 hours 105 person hours Condominiums 3 new applications 35 hours 105 person hours Subdivisions 5 new applications 210 hours 1050 person hours The volume of additional work that is expected to be generated as a result of SWAP will require a minimum of one additional full time position (1848 hours) to ensure that application processes are maintained in a timely, professional manner, and within the statutory timelines prescribed under the Planning Act. b) Impact of Growth Staffing Staffing FT# Staffing FTE# Staffing FTE $ c) Impact of Growth Costs $82,536 (including salary of $64,406 and benefits of $18,130) Operating (Growth area x unit of measure cost of service) $82,536 Work station, computer & associated furniture: PC - $1,100 Phone - $250 Desk, overhead - $4,000 Chair - $600 Software - $550 Total (one-time) cost: $6,500 Capital Cost of Incremental Assets $0 Total Growth Request $89,036 d) Impact on Assets Used to Provide Service This position requires a workstation, computer/software and associated furniture Draft Budget for the City of London - December 8, 2014 Page 1191

32 Assessment Growth Business Case #10 Service Grouping Service/Program Background/Description of Change Development Services Development Services Create new full time (FT) position in the existing EIT Program in Development Services 1. Background This budget request is in response to expanding development activity expected for 2015 and beyond combined with a strategic push to provide a high level of service for future growth applications. A FT position will provide cost-effective engineering coordination and liaison support to the existing two Development Engineering Managers to help manage expected increases in workload and achieve expectations for level of service for development approvals. This Business Case requests the necessary funding to support an additional FT position located in the Development Services Division. The Managing Director of Engineering Services has been consulted on this proposal and there is support to incorporate this new FT position into the existing Engineering-In-Training Program to allow future engineers to rotate through the Development Services Division. The position would be filled on a full-time basis with a new FT rotating into the position every 9 to 12 months. While an additional FT position is intended to provide additional engineering support to the existing two engineering managers, there are numerous big-picture secondary benefits to Development Services and the corporation. This proposal will provide future engineers with valuable exposure to the pressures and priorities unique to managing development related issues. The benefits of this proposal will be observed across service areas, including: improved divisional understanding of Development Services role as the face of development; improved understanding of approval process and the points where divisional comments are critical to establish an approval framework; improved divisional trust to support Development Services advancing applications based on established approval framework; 2015 Draft Budget for the City of London - December 8, 2014 Page 1192

33 building better working relationships between Development Services and the engineering divisions; and supporting corporate succession planning as staffing forecasts indicate the City will experience numerous engineering retirements starting within the next few years. The engineering work undertaken in Development Services touches on all of the servicing and planning disciplines with a need to see the bigger picture and ensure development infrastructure in the City is well-integrated and sustainable; excellent experience for any engineer seeking a successful career with the City of London. a) Area Currently Served by Unit of Measure The files managed in Development Services represent applications under the Planning Act, and while our planning staff act as the custodian for files, there is a significant component of in house engineering support required to successfully advance files to approval. Presently, the engineering coordination and liaison function is managed by two Engineering Managers. Under existing conditions, these two managers maintain a significant workload between leading engineering review teams, dealing with file issues, and managing staffing matters as well as their own portfolios of growth related policy initiatives. Current Measure of Service: 2 full time Engineering Managers = 1,700 hours x 2 = 3,400 hours 75% = Current Engineering Manager hours applied to development applications = 2,550 hours 25% = Approximate time absorbed by growth related policy initiatives = 850 hours b) Current Cost and Labour for Service or Program Provided Total (Annual) Operating Cost FT# FTE# $3,751, c) Unit of Measure Cost of Service (Current Cost/Labour divided by Current Area) Unit of Measure Cost $84,800 (salary/fringe/overhead) 1700 hours Unit of Measure FTE 2015 Draft Budget for the City of London - December 8, 2014 Page 1193

34 d) If this is a Contracted Service, what is the Percentage Contracted Out? No component of this service is contracted out. e) Assets Currently Used to Provide Service Office space, equipment, furniture, vehicle, professional memberships etc. (not included in value noted above) 2. Request a) Growth Area by Unit of Measure Growth is not exclusively related to land expansion. Pressures to support growth have continued to increase even though there has been little expansion to Urban Growth Boundary. Contributing factors to increased strain on development approvals include: SWAP: The recently OMB approved Southwest Area Plan has now established new land use designations for various forms of development previously constrained by an Urban Reserve designation and zoning. This will facilitate a wave of greenfield development applications by developers anxious to take advantage of newly designated land uses. (approximately 850 ha now designated for various forms of development) Intensification: A call for infill and intensification within the Built Area through Provincial policy and revised policies associated with OP Amendment 438 have resulted in an increase in the number of site plan applications and development agreements per year. This level of activity is expected to continue as intensification is promoted in the new draft OP Update The London Plan as a means of encouraging efficient use of land and compact urban form. DC Rate Adjustment: Approval of the 2014 DC Background Study with a 5yr stepped implementation of the increased commercial DC rate anticipated to drive increased pressure for commercial site plans over the next few years as applicants rush to beat rate increases. The London Plan : This plan represents a major shift in planning policy context and will require changes in the implementation of future processes. Compiled, these factors create a need for additional staffing just to maintain a consistent level of service expected from Council and the industry. The table on the following page outlines the engineering management hours associated with providing engineering coordination, liaison and support for the increase in development applications associated with the above growth factors Draft Budget for the City of London - December 8, 2014 Page 1194