Sunday, January 03, 2010

FOR THE RECORD: DCC's Bylaw Voted on Dec 14, 2009. (No changes to Nov.9 Presentation)

On Dec. 14, 2009 the Vernon Council by a 5-2 vote decided not to adjust the DCC Project List to account for the true costs for the Sewer Plant, the expansion past 2016 for the Biosolids Plant and the new provision to access current taxpayers reserves to pay for any non-profit affordable housing. This motion to send it back to staff was defeated and by a 4-3 vote the DCC Bylaw was sent as presented to the Province for their approval and blessing. It is expected that this bylaw will come back from the Province approved in February or March and it will receive final reading by the Vernon Council.

The decision not to adjust the Project List had the following effects:
  • Wastewater Reclamation Plant: Existing Sewer Plant that cost $29,000,000 plus interest of $23,141,631 or a total of $52.141 million was a 50 % DCC project to collect $26,070,815 and was changed to a total of $27,326,900 at 30% or a payment of only $8.198,070 from future growth. (a $18 million change from developer pay to sewer user payor !)
  • Project # 58 Regional Composting Facility Expansion: Expansion is costed to 2016 only. No cost attributed from 2017 to 2031. This is a 100% DCC Benefit item. The expansion to 2016 cost $2 million. My layman's estimate for period 2017-2031 is $2.5 to $3 Million. (A potential $3 million change from developer pay to sewer user payor !)
  • Development Cost Charges for “Low Income Housing” is waived.”: This is a retention of the 2008 clause that was put in the bylaw. A method of costing that charge out within the bylaw was in the 2008 bylaw but was changed so that the DCC reserves would be paid for those DCC's waived for this purpose from the Taxpayer's Affordable Housing Reserve as necessary. (The previous method had simply reduced the DCC's payable by a small fixed amount to ensure that the community rather than developers paid for this waiver.)
The DCC Bylaw as approved by the Province will probably pass when it comes back in early Spring. However if it does I will introduce a motion that the DCC bylaw be reexamined on a yearly basis (i.e. by Dec. 2010) to address any minor changes such as project cost adjustments etc. A yearly examination of the DCC bylaw is one of the recommendations from the consultant used to develop the DCC Bylaw with a major revisit each 5 years. Should the motion pass then I will ask that the Sewer Plant, Biosolids Plant and the Low Income Housing waiver be addressed.
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Most of my objections that I presented in full at the Dec. 14 meeting can be found at DCC's Bylaw to be Voted on Dec 14, 2009. (No substantial changes to Nov.9 Presentation).

My main objections to the DCC Bylaw were given to both staff and council from late September to Dec. 14 but were not accepted by the staff or consultant and rejected by some of my fellow council members. It was easily summed up in an article by Richard Rolke in the local paper when I was quoted as “Development should pay for itself so the projects on the list should be accurate and complete,”

The net effect of not making these changes can be summed up from a quote in a radio news item by Kiss's Pete McIntyre: "So every time you sit on the throne, you can remember you're rates are a little bit higher than they should be."

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