Metro Vancouver Development Cost Charge Program Review

​What is the DCC Review?

In 1997, Metro Vancouver implemented a Development Cost Charge (DCC) Program in the Liquid Waste function of the Greater Vancouver Sewerage and Drainage District (GVS&DD), the purpose of which was to ensure that new development in the region would fund the cost of the liquid waste infrastructure expansion required to service that development. The policy aspects of the program were developed to be consistent across liquid waste operations, with each sewer area assigned a separate and unique fee structure based on the requirements of that specific sewer area.

At the introduction of the DCC program, rates were set based on the development plans of member municipalities and the necessary infrastructure expansion required to service that development. Since that time, DCC rates have not been updated, despite the significant growth in development throughout the Metro Vancouver region, the increasing need for system expansion, and the rising cost of liquid waste infrastructure.

Metro Vancouver has recalculated the DCC rates taking into consideration growth, system and cost conditions, resulting in a required increase to help pay for expanded liquid waste infrastructure necessary to serve the growing population in the region. Following a public consultation process during the months of September and October on the proposed new rates, and the subsequent pass of the new DCC bylaw by GVS&DD, Metro Vancouver is now seeking provincial approval for the proposed new rates.

What are the new proposed rates?

The current DCC rates (per unit for residential and per square foot for non-residential) are as follows:

Sewer Area Single-Family Townhouse Apartment Non-Residential
Vancouver$944$826$590$0.443 sq ft
​Lulu Island​$1,077​$942​$673​$0.505 sq ft
​North Shore​$1,291​$1,129​$807​$0.605 sq ft
​Fraser​$1,731​$1,515​$1,082​$0.811 sq ft

 

The proposed new rates are:

Sewer Area Single-Family Townhouse Apartment Non-Residential
Vancouver$1,811$1,618$1,072$0.93 sq ft
​Lulu Island​$2,214​$1,915​$1,388​$1.05 sq ft
​North Shore​$2,300​$2,076​$1,416​$1.20 sq ft
​Fraser​$5,428​$4,695​$3,530​$2.67 sq ft

 

The proposed changes focus on the principle that 'growth pays for growth'. The existing DCC rates were established almost 20 years ago and significant changes to cost and growth conditions mean they are not sufficient to sustain funding requirements for growth, particularly in the Fraser Sewerage Area. 

The proposed new rates also recognize that the four sewer areas -- Vancouver, Lulu Island, North Shore and Fraser -- each have a different cost profile as a result of population, growth rate, and prior infrastructure investments. The Fraser Sewerage Area, for instance, includes significant growth development, which requires the extension of trunk lines, new pump stations, new interceptors and a river crossing.

Current Status

A bylaw amending the DCC rates was given three readings by the GVS&DD Board at its October 27, 2017 meeting.  Following provincial approval and final adoption of the amending bylaw by the Board, the new DCC rates will come into effect May 1, 2018.

Community Input

Public consultations on the proposed new DCC rates were held in each of the region's four sewerage areas (North Shore, Vancouver, Lulu and Fraser – see below for schedule) during September and October 2017. These sessions were open to the public, although they were tailored to the development community and elected officials/municipal staff.

Public consultation sessions:

Sewerage Area Selected Date Hotel
North ShoreTuesday, September 19thPinnacle Hotel at the Pier
​Vancouver​Wednesday, September 20th​Sheraton Wall Centre
​Fraser (South)​Thursday, September 21st​Sheraton Vancouver Guildford
​Fraser (North)​Monday, October 2nd​Anvil Centre
​Lulu​Tuesday, October 3rd​Executive Airport Plaza Hotel Richmond
​Webinar​Wednesday, October 4th, 11:30 to 1pm​Online

Other Resources

For the Finance and Intergovernment Committee report on the DCC Program Review that was presented in July, please go to: http://www.metrovancouver.org/boards/IntergovernmentFinance/FIC_Jul_19_2017_Agenda.pdf

For the GVS&DD report on the new DCC Bylaw that was presented on October 27, 2017, please go to: http://www.metrovancouver.org/boards/GVSDD/SD_2017-Oct-27_AGE.pdf

DCC Review Consultation Storyboards

DCC Review Consultation Presentation

Further Information

For more information on the DCC Program Review Project, please contact Dean Rear at dean.rear@metrovancouver.org or 604-436-6838.