STAFF REPORT

December 29, 1999

To: Budget Advisory Committee

From: Acting Commissioner of Urban Development Services

Subject: Official Plan: 2000 and 2001 Transition Funding Allocation

Purpose:

On December 10, 1999 the Budget Advisory Committee requested that the Acting Commissioner of Urban Development Services report back to Budget Advisory Committee on January 10, 1999 with a business case to support the change in scope for the new Official Plan with respect to the additional funding requirements for the years 2000 and 2001.

Financial Implications and Impact Statement:

Funding in the amount of $530,000 is being requested for 2000; $395,000 for 2001; in addition to the $472,000 carryover from the 1999 approved budget.

Recommendations:

It is recommended that:

(1) Council authorize the carryover of approximately $472,000 of which $362,000 is contractually committed;

(2) Council approve funding in the amount of $530,000 for 2000 and an additional $395,000 for 2001 from transition funding for the preparation of a new Official Plan; and

(3) The appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Background:

On February 1, 1999, Council approved funds in the amount of $700,000 from Transition funding for the preparation of a new Official Plan. The new Official Plan qualifies as a transition project because the need for a new Plan arises as a result of amalgamation. There are clear benefits to having an Official Plan that addresses the new city as a single municipality. The existing Official Plans, contain over 2000 pages of differing policies and do not provide either a clear direction or a workable planning framework for the amalgamated City. The benefits of a new Official Plan include:

· the development of strategic policies that will position the City to attract our share of the projected regional population growth;

· positioning the City to capture economic growth in order to compete in the global economy and sustain a high quality of life;

· providing a guide to make the best and most effective use of public and private investment in the City;

· allowing more effective use of our limited staff resources: a new plan providing for a consistent policy direction will enable staff to move easily from one location to another; and

· fewer site specific official plan amendment applications.

It is important to stress that the new Plan is not merely a consolidation of the existing plans, but rather will be a new Plan that will help to position the City to capture growth and reinvestment over the next 20 to 30 years. The new Plan will put in place Council's agenda for its future.

The total project flows over a three year timeframe. However, in preparing the Official Plan budget for 1999, Staff requested transition funds for 1999 only, anticipating to again request funds for 2000 and 2001. Staff is now advised that the total funding requirements for the Official Plan should have been made as one request. As a result this revised request includes the full cost of production and consultation of the Plan over the remaining two years the project is projected to take to complete.

Comments:

1999 Budget Allocation for the New Official Plan

In March of 1999, Council adopted "The Framework for the New Official Plan" which provided the general direction for the Official Plan process. The Official Plan process was officially launched on April 7, 1999, with a City sponsored public forum entitled "Shaping Toronto's Future". Since the launch, the process has proceeded on multiple fronts including an active public awareness and community consultation strategy, a research program and the initiation of a number of major background studies.

Of the $700,000 originally budgeted, approximately $228,000 has been spent. Final invoices are pending which will increase the amount actually spent in 1999. Of the remaining $472,000, $362,000 is committed towards consultant contracts negotiated in November and December of 1999, but for which billing will not commence until 2000. This leaves a balance of approximately $110,000 that has been allocated to ongoing public communications and consultation in 2000. Therefore, Staff seeks Council's approval to carry forward the unspent $472,000 into the 2000 Official Plan budget.

The necessity to carryover a portion of the 1999 budget allocation is explained by a combination of factors relating to staffing, timing and the nature of how the Official Plan process has evolved.

The 1999 Official Plan budget was prepared in November 1998, before Council adopted the "Framework for the New Official Plan" and well before Staff could benefit from the advice and direction from the Council Reference Group. As such, the work program has evolved since Council approved the 1999 Budget request. In order to properly understand the complexity of a number of issues facing the City, additional consultant studies and research has been required than originally projected.

This has been further complicated by the delay in staffing the Official Plan Team. The Official Plan Team reached its full staffing complement in October 1999. The longer than expected period of understaffing severely challenged the Team's ability to meet it's originally identified timelines. Understaffing has had a twofold impact. First, it necessitated the need to contract out more work that would have been done internally had Staff resources been available. Second, it delayed initiation of certain consultant's studies since, by their innovative nature, the types of studies proposed for the Official Plan require a great degree of Staff preparation, participation and project monitoring. Several of the studies initiated in 1999 will actually be completed in 2000, meaning that the associated community consultation will have to take place in 2000.

The following chart demonstrates the approved 1999 budget and where Staff originally anticipated expenditures to occur and the actual and committed budget expenditures per area.

Estimated 1999 Actual/Committed

Expenditures 1999 Expenditures

Communications/Consultations: $400,000 *$130,000

Research/Consultants: $250,000 *$441,000

Council Roundtables: $ 50,000 *$ 19,000

Total: $700,000 *$590,000

* Figures are approximate

$110,000 - unspent funding

2000 Budget Allocation for the New Official Plan

Staff is requesting an additional $530,000 as part of the 2000 budget allocation exclusive of the 1999 carryover. The monies required for 2000 are for costs associated with the further development of the new Plan. The budget requirements are as follows:

Communication and Public Consultation: $150,000

Advertising: $ 35,000

Major Public Events and Forums: $ 75,000

Publications: $100,000

Consultants/Surveys/Research: $150,000

Council Workshops/Reference Groups: $ 20,000

Total: $530,000

The monies proposed to be allocated will enable Staff to continue and to expand the public consultation process and broad mandate for policy development in accordance with the framework approved by Council. It is envisioned that major reports will be released in 2000 for discussion purposes, which will require consultation. Staff is currently preparing a Status Report on the direction of the Plan to be presented to Council in March. In order to facilitate discussion with stakeholders, Staff will need to conduct strategic consultations. Staff will also continue to prepare newsletters/brochures to convey the direction of the Plan to the public and to solicit public feedback.

It is also anticipated that a portion of the funding dedicated to the 2000 budget will be directed at consultants to prepare additional reports, particularly pertaining to transportation. Transportation has been identified as a leading issue for the new Official Plan, particularly with regard to priority setting activities of the Greater Toronto Services Board for GTA wide transportation policies and funding initiatives. In addition, the increasing importance of efficient truck movement for the economic competitiveness of the City and the GTA must be recognized.

2001 Budget Allocation for the New Official Plan

Staff is requesting a further $395,000 as part of the 2001 budget allocation. The monies required for 2001 are for external costs of the new Plan. The budget requirements are as follows:

Communication and Public Consultation: $250,000

Advertising: $ 35,000

Major Public Events and Forums: $ 50,000

Publications: $ 40,000

Council Workshops/Reference Groups: $ 20,000

Total: $395,000

Finalization of the new Plan is anticipated to be dealt with by the new Council in January/February 2001. Extensive public consultation, advertising and the preparation of a newsletter advising residents, the business community and stakeholders of the Plan will be required.

In addition, Implementation and Action Plans will be developed to implement the directions of the new Plan. A significant amount of work will be dedicated to developing Action Plans which are intended to effectively position the City to respond to change as community conditions evolve over the life of the Plan.

If the Plan is not fully funded as a transition project over the next two years:

· we will be unable to carry out the broad consultation directed by Council;

· we will have to forego external consultation and expertise required to expedite the process and learn from others;

· we will lose the momentum that has been generated around this project, particularly the interest shown by a wide range of stakeholders;

· we will lose the ability to adequately set priorities for the effective expenditure of capital funds to support development and encourage investment in the City;

· we will be unable to address pressing regional issues which may threaten our ability to position the City to attract economic reinvestment; and

· we will be unable to identify meaningful indicators to measure progress toward meeting the strategic objectives of improving the City's quality of life.

Conclusions:

Council has recognized the benefits of developing a new Official Plan and has already approved its funding as a transition project. In order for the Official Plan Team to continue its extensive public consultation program and broad analysis of issues, as previously directed by Council, an additional $925,000 in transition funds are required for 2000-2001. In addition, Council approval is required for the carryover of transition funds not expended on the Official Plan process in 1999.

Contact:

Kerri A. Voumvakis

Manager Official Plan and Zoning

Metro Hall

Telephone: (416) 392-8126

Fax: (416) 397-4080

Paul J. Bedford James Ridge

Executive Director and Chief Planner Acting Commissioner

Urban Development Services