Report to: Development Services Committee                               Report Date: March 18, 2008

 

 

SUBJECT:                          Sustainable Development Standards and Guidelines:

                                            -   Request For Proposals

                                            -   Interim Sustainability Measures

 

PREPARED BY:               Valerie Shuttleworth, Director of Planning & Urban Design

                                            Ronji Borooah, Town Architect

                                           

 

RECOMMENDATION:

That the report dated March 18, 2008 titled “Sustainable Development Standards and Guidelines” be received;

 

That Council endorse the Request For Proposals attached as Appendix “A”;

 

That the members of the Environmental Issues Committee act as a steering committee for the duration of the study and finalization of the guidelines;

 

That Council continue to target minimum LEED Silver for all new municipal buildings and additions/renovations to municipal buildings; 

 

That, as an interim measure to remain in place until completion of the Sustainable Development Standards and Guidelines Study, Council confirm LEED silver as the minimum standard for all new medium and high density residential developments;

 

That, as an interim measure to remain in place until completion of the Sustainable Development Standards and Guidelines Study, Council encourage institutional, commercial and industrial developers to apply site development and building construction techniques that reduce heat island effect, minimize storm water run-off, increase infiltration, include rain water harvesting, grey water re-use, cool roofs and green roofs, permeable paving, landscaping, energy efficiency and general water conservation and lead to more energy efficient and environmentally sensitive developments;

 

That, as an interim measure to remain in place until completion of the Sustainable Development Standards and Guidelines Study, Council encourage builders to apply Energy Star standards, as developed by Natural Resources Canada (NR Can), for low density housing;

 

That staff consult with the development industry, through the Developers Round Table, and report back to Development Services Committee on any implementation issues pertaining to the interim measures and the study process;

 

That the transition process for current development applications, as outlined in this report, be endorsed;

 

That, as part of the study, an Official Plan Amendment be prepared to ensure the Town fully utilizes the new provisions of Section 41(4) (2) of the Planning Act, as introduced through Bill 51;

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

Since the early 1990’s, the Town has been moving toward creation of more sustainable neighbourhoods and communities based on the principles of New Urbanism.  With the adoption and application of the Markham Centre Performance Measures document in 2003, the Towns’ sustainability agenda advanced into the precinct and site development area. At the same time, staff, Council and some developers have seen the benefit of constructing buildings through the LEED (Leadership in Energy and Environmental Design) program.

 

The time has come for the Town to proceed to develop Sustainable Development Standards and Guidelines to apply on a Town wide basis.  Staff recommend that the study and guideline development proceed in two phases.  Phase one will result in production of Site Guidelines and an implementation strategy.  Phase one is targeted to be completed by the second quarter of 2009.  Phase 2, Neighbourhood guidelines will follow in 2009.  Terms of Reference for Phase 1 are attached for Committee’s endorsement.

 

Council and staff have also discussed the need for interim sustainability targets to be put in place for the duration of the study.  This has already been initiated for medium and high density residential development.  As a current requirement for receiving servicing allocation, medium and high density development must, among other matters, achieve a minimum of LEED silver rating.  Therefore, no additional interim targets are required for that category of buildings.  This report addresses the need for interim sustainability targets for low density housing and ICI projects. 

 

PURPOSE:

The purpose of this report is two fold.  First, it outlines a study process leading to adoption of Sustainable Development Standards and Guidelines and requests authorization to release Terms of Reference attached as Appendix “A”.  Second, this report proposes adoption of interim measures to advance the Town’s sustainability agenda throughout the duration of the study.

 

BACKGROUND:

 

The Town initiated a “sustainable” direction for growth over a decade ago

Markham’s journey toward sustainability actually began well over a decade ago, long before the term “sustainability” was as common as is it now.  The last growth management exercise undertaken in the early 1990’s, and the choices made around future patterns of growth at that time, marked a turning point in the evolution of the municipality’s development.  Council chose to limit outward growth (urban sprawl) and accommodate significant new growth in intensification areas such as Markham Centre and Times/Galleria.  New Greenfield communities were planned on the principles of New Urbanism, including higher density, mixed use, compact form, a grid network of streets conducive to transit and pedestrian movements, and an emphasis on the public realm (eg. Cornell, Angus Glen, Cathedral community).  From this strategic direction, the Town began its move toward “Smart Growth” and more sustainable communities. 

 

Markham Centre Advisory Group Developed Performance Measures in 2002, updated in 2007

In 2002, the Markham Centre Advisory Group sponsored a series of public workshops focussed on five key themes: Greenlands, Transportation, Built Form, Green Infrastructure and Public/Open Spaces, designed to measure the Town’s success in developing a mixed-use and environmentally sustainable downtown known as Markham Centre. 

 

The resulting Performance Measures Document, which was endorsed by Council in 2003 and incorporated as an appendix to the Markham Centre Secondary Plan, received an award for Sustainable Community Planning from the Federation of Canadian Municipalities (FCM) in 2003.

 

In order to ensure the Performance Measures continue to be current and leading edge, the Town, in 2007, retained a consultant to assist staff in up-dating the document including consideration of LEED criteria (Leadership in Energy and Environmental Design).  A Task Force of Advisory members worked with the consultant and staff to not only address LEED, but also simplify, clarify and up-date the Performance Measures, including ensuring that each Performance Measure had a corresponding performance indicator. 

 

The revised document, which was endorsed by Development Services Committee on November 27, 2007, is more progressive, clearer and easier to apply.  In addition, the measures have been identified on the basis of both Precinct and Site specific levels of applicability.  The Performance Measures Document is an integral component of the review of development applications in Markham Centre.  Benchmarking the Performance Measures against LEED facilitates the design of energy efficient and environmentally sensitive buildings in Markham Centre, while retaining the quality community components that are so integral to the spirit of the original performance measures as a community-based value document.

 

Staff have encouraged and negotiated sustainability measures in development approvals

Since the introduction of the Markham Centre Performance Measures staff have had many discussions with development applicants regarding introduction of a number of sustainable development measures such as green (or white) roofs, permeable paving surfaces, LEED certified buildings, “bird friendly” buildings, bio-swales, to name a few.  These discussions have taken place with developers/builders across Town, and not just in Markham Centre.  Developers have embraced these new ideas to a varying degree of success.  It is clear that Markham Centre developers, in large part due to the history of consistent application of the Performance Measures document, have gained a better understanding of the benefits of “going green” sooner than others in the Town.  The majority of Markham Centre developers are now seeking LEED silver accreditation. 

 

Council has also probed architects and developers and consistently encouraged them to do more in the area of sustainability.  Over time, the development industry is gradually moving toward acceptance and incorporation of more sustainable site development and construction features into new developments.  It is anticipated that, with the introduction of Town wide sustainable development standards and guidelines, success similar to that achieved through the Markham Centre Performance Measures document can also be achieved, over time, Town wide.

 

It is also important that the Town continue to lead by example.  For example, the new Cathedral Fire Station and the East Markham Community Centre are targeted to receive LEED silver certification with options for possible gold certification to be considered. Recent additions and renovations to municipal buildings have incorporated a broad range of sustainability measures, from green roofs to solar hot water heating. 

 

Council strives to gain a better understanding of LEED

Through consideration of the revised Markham Centre Performance Measures document, Council sought a better understanding of the LEED program and requested that our LEED consultant give a presentation to Development Services Committee.  On November 20 2007, Tom Emodi of Young Wright Architects attended Development Services Committee and outlined the current impact of the building industry on the environment. He reviewed the LEED framework and explained the five LEED credit categories:

  1. energy and atmosphere (27%);
  2. indoor air quality (23%);
  3. materials and resources (20%);
  4. sustainable sites (22%); and
  5. water efficiency (8%).

 

Mr. Emodi also explained the approximate average capital cost for a certified green building is around a 2% - 4 % cost premium for LEED certified and Silver, which is typically $3.00 - $5.00 per square foot, and around a 10% cost premium for LEED Gold.  However, he also pointed out that the financial benefits or savings of green design run from $50.00 (certified and silver) to $75.00 (gold and platinum) per square foot in LEED buildings, over their life cycle.

 

Planning Act Changes (Bill 51) Related to Sustainability

In the fall of 2006 the Province of Ontario amended the Planning Act (Bill 51).  The new provisions came into effect January 1, 2007.  These amendments modified many aspects of the land use planning process.  The process enhancements included changes to the site plan control provisions in Section 41 to, in part, promote sustainability and help manage the design of communities.

 

The Planning Act, in Section 41 (4) 2 (d), now provides that Council can approve matters on site plan drawings related “…to exterior design, (underline added) including without limitation the character, scale, appearance and design features of buildings, and their sustainable design (underline added), if an official plan and a (site plan control by-law) both contain provisions relating to such matters are in effect in the municipality.”

However, Section 41 (4.1) 3. of the Planning Act specifically excludes from site plan control: “The manner of construction and standards of construction.”  Consequently, municipalities are left with no statutory authority to require compliance with sustainable building construction practices such as LEED that deal with the interior of buildings to evaluate their sustainability.  However, we can create and adopt sustainability polices for the exterior of buildings, for example green or white roofs, and cladding materials.

LEED credits, in large part, come from construction methods, building systems and equipment.  Many of these items are interior to the building and only regulated under the Ontario Building Code (OBC).  While a number of building code changes related to energy efficiency are being phased in, most measures we are discussing remain beyond current OBC requirements. However, as of December 31, 2011, the Building Code will require new houses to meet standards that are substantially in accordance with EnerGuide 80 and also require that new non-residential and larger residential buildings meet standards that are substantially in accordance with energy efficiency levels that are 25% higher than the Model National Energy Code for Buildings (which will be similar to LEED).

 

Until the OBC is changed, the Town can continue to negotiate with developers and builders to construct buildings that meet LEED criteria and link servicing allocation and municipal approvals to sustainability objectives.  Official Plan policy and conditions of approval can reinforce Town objectives, but Official Plan policies and Site Plan requirements to compel a builder/developer to construct a LEED building remain beyond our statutory authority under the Planning Act and the Building Code.

 

In the April 3, 2007 Report to Development Services Committee re Bill 51, Planning staff made a number of recommendations, including that staff report back to Development Services Committee regarding the merits of amending the Town’s Official Plan and Site Plan Control By-law to add policies regarding a building’s external design details. The Official Plan and Site Plan Control By-law should be amended to add specific policies regarding external design detail, to address matters such as sustainable design, character and appearance.

 

As part of the “Sustainable Development Standards and Guidelines” Study, staff will, together with the chosen consultant, develop sustainability polices related to the exterior design of all new buildings constructed in the Town.

 

As well, section 41(4)(2)(e) allows the municipality to address sustainable design elements on any adjoining highway, including “trees, shrubs, hedges, planting or other ground cover, permeable paving materials, street furniture, curb ramps, waste and recycling containers and bicycle parking facilities…..”   These requirements will also be determined and documented through the Sustainable Development Standards and Guidelines Study.

 

OPTIONS/ DISCUSSION:

 

Sustainable Development Standards and Guidelines Study to proceed in Two Phases

The Town of Markham Sustainable Development Guidelines Study will proceed through two phases.  Phase 1 of the study will focus on sustainable development at the Block and Site level (Site), for developments other than low density.  Phase 2 of the study will address sustainable development issues at the Neighbourhood and Community design level (Neighbourhood), including low density development.

 

The majority of the individual applications the Town of Markham receives are for development at the block and site level.  Applications at the neighbourhood level are much less frequent, and typically require an Official Plan Amendment, Secondary Plan, Community Design Plan and plan of subdivision process (e.g. OPA 5 greenfield areas).  With the majority of the OPA 5 community design work and draft plan approvals in place, there are relatively few current applications at the Neighbourhood level.  Therefore, there is little immediate pressure for Neighbourhood Guidelines.  However, there is an immediate need for Guidelines at the Site level.  It is recommended that Guidelines be prepared at the Site level as Phase 1, starting in 2008.  Neighbourhood Guidelines, as Phase 2, can start in 2009.  The Terms of Reference attached to this report are for the Phase One portion of the study.  Staff will report on Phase 2 in the context of the 2009 Capital Budget process.

 

Phase 1: Site Guidelines in 2008/2009

The preparation of Site Guidelines will benefit from the results of work already completed in this field.  The Markham Centre Performance Measures Document has been approved by Council, and contains measures that have equivalents in the LEED-NC (New Construction) and LEED-ND (Neighbourhood Development) documents.  The LEED-NC document is internationally recognized, familiar to the local development industry, and has been used extensively in the preparation of sustainable development guidelines (with local modifications) by many municipalities in Canada and the USA.  These two documents are examples of existing guidelines that can form the basis for the Phase 1 study, without the need for basic research or “reinventing the wheel”.

 

Phase 2: Neighbourhood Guidelines in 2009/2010

The current status of work regarding sustainable guidelines is that these guidelines exist at the Site level, e.g. LEED-NC, and have been in use for some years; but there are no current guidelines at the Neighbourhood level that are nationally recognized, or in general use.  The USGBC (U. S. Green Building Council) has developed a draft set of LEED-ND (Neighbourhood Development) guidelines, which are being tested through a pilot program started in 2007 and involving 238 projects in 6 countries.  This pilot program should yield preliminary results in 2008, with a proposed launch of the LEED-ND Guidelines in 2009.  The CaGBC (Canadian Green Building Council) is currently modifying the USGBC draft LEED-ND document into a Canadian version, which should have preliminary results in 2009.  It is recommended that the results of these studies be used as a basis for the preparation of Town of Markham Neighbourhood Guidelines, which can start after these results are available in 2009.

 

Need for Interim Guidelines to be in place for duration of study

The Phase 1 Study for Site Guidelines is at the Request for Proposals (RFP) preparation stage (see Appendix “A”, attached).  The RFP is ready for review and approval by Council.  The RFP process and the selection of a consultant will take 2-3 months.  The study will start in May-June 2008 and should be completed by May 2009.  Council has suggested Interim Guidelines need to be adopted until the Phase 1 Study is completed.

 

The Town receives applications for several building types and categories.  The three broad categories are: medium and high-rise residential; low-rise residential; and ICI (industrial, commercial, institutional) uses.  It is recommended that interim guidelines be different for each category, as described further below.

 

York Region adopted a “Sustainable Development through LEED Program”

Markham Council, on October 17, 2006 endorsed a principle that “where, through construction of a LEED building, servicing capacity is saved, any such saving, when realized as additional servicing allocation capacity by the Region, should be allocated to the developer of the LEED building that “created” the additional capacity for use on the site that created the capacity or another site owned by the same developer”.  Partly in response to this Markham Council resolution, in June of 2007, York Region adopted a “Sustainable Development through LEED” program, in relation to servicing allocation.  The program is intended to apply to medium and high-density residential development, and provides a servicing allocation bonus based on a minimum of LEED-NC Silver standards, with additional modifications to suit regional criteria, such as water conservation; location next to transit; location within Regional Centre, Corridor or Local Centre; density target of 2.5 FSI; and 3-stream waste management. 

 

The Town of Markham has already required that medium and high-density residential units receiving 2011 allocation be based on developments that comply with the York Region Sustainable Guidelines.  In approving the February 5, 2008 staff recommendations related to servicing allocation, Council added a condition that “the medium and high density developments be required to participate in the Regional “Sustainable Development Through LEED” program, including, as a minimum, LEED Silver certification and 3-stream waste separation, as a condition of servicing allocation”.  Therefore, any medium and high density development proceeding through the approval process, receiving allocation and moving to site plan approval in the coming months, is already required to obtain a minimum of a LEED silver rating.  No additional interim measure for medium and high density developments is required at this time. 

 

Interim Guidelines for Different Building Categories

            Upcoming medium and high-rise residential development will be regulated by the York Region “Sustainable Development Through LEED” guidelines, as a condition of servicing allocation and site plan approval.  The Guidelines are based on the LEED-NC program, which has been designed for this building type and category.

 

            Low density residential development will in future be subject to the LEED Neighbourhood Design program, currently in development.  However, in the interim, the Energy Star program has been widely recognized and is being applied in a number of other municipalities.  Energy Star addresses issues of energy efficiency and water conservation for houses, appliances and fixtures.  It is recommended that the Energy Star program be considered as an acceptable interim guideline for low-rise residential development. 

 

The ICI (industrial, commercial, institutional) category includes several building types, from single storey industrial and retail structures to mid- and high-rise office buildings.  The current LEED-NC category was designed to address sustainable design for mid- and high-rise commercial buildings.  However, the typical ICI development in the Town is a low-rise retail building or plaza.  Large industrial or office commercial buildings are infrequent, and are very competitive across the GTA in terms of costs and leasing/sales rates.

 

It is recommended that, rather than looking to achieve strict conformance to LEED-NC or Energy Star for ICI developments, staff continue to promote many of the measures contained in LEED and Energy Star, such as minimizing heat island effect, minimizing storm water run-off, increasing infiltration, rain water harvesting, grey water re-use, cool roofs and green roofs, permeable paving, landscaping, energy efficiency and general water conservation with our ICI applicants.  These measures will be discussed and applied on a project-by-project basis, depending on the size and tenure of the project.  Imposition of a fixed standard at this time, without the benefit of a thorough study, evaluation and consultation process could prove to be a disincentive in an already slow and competitive ICI market.

 

Toronto Green Development Standards: Comparison

The Toronto Green Development Standards (GDS) were adopted by Toronto Council in 2007.  These Standards are voluntary, because there is no statutory power to make them mandatory.  The City’s Legal staff is reviewing Bill 53 (the City of Toronto Act) to see how they can use it to implement GDS as a mandatory requirement.  Currently, the GDS is handed out as a checklist for developers to use in preparing their applications, with a request that they conform to the Standards.  The typical application in the City for any significant development requires a rezoning.  This is the mechanism used by the City to ask for conformance to the Standards.  So far, about 50% of the respondents have indicated a willingness to comply at least partially with the checklist.  The Planning department staff review the checklist during the approvals process.  Toronto Planning staff has used the Official Plan Amendment, Rezoning and Site Plan Approval processes to achieve some of the objectives of the GDS.  Compliance is secured through Section 37 (bonusing) agreements.  However, the City does not have a mechanism for monitoring or enforcing the Standards after the application is approved for construction.

 

Consultation with Industry

Town of Markham staff are following the clear direction of Council in bringing forward the interim measures outlined in this report.  However, to achieve successful implementation it is necessary to work in partnership with members of the development industry.  It is recommended that Council and staff continue to promote Sustainable Development Standards and Guidelines (interim and ultimate) with the industry, and that the development industry be consulted throughout the implementation program. In order to achieve buy-in from the industry, standards and guidelines need to be clear, provide certainty, predictability and a level playing field for all developers and builders in Town.  It is suggested that staff advise the industry regarding the interim measures at the next Developers Round Table meeting (tentatively scheduled for April), and report back to Development Services Committee.

 

As well, the schedule and timing for roll-out of the larger study program and consultation with the industry during that program/study will also be discussed.  Formalized consultation with the industry, similar to the Make It Happen Task Force, would be appropriate in the course of the study.

 

Transition process for applications progress is proposed.

As with any new initiative, staff has reviewed the need for appropriate transitioning of the new interim measures.  It is important to allow the development industry and applications in process some reasonable amount of time to accept and work through the interim measures.  A rigid application of the new interim measures, in the absence of any statutory authority, is not advisable.  A process of discussion, education and acceptance must continue. The following are proposed transition guidelines which will be also be discussed with the industry at the next developers round table meeting:

 

1        For medium and high density residential site plan approval applications:

·        Applications that are in process, but not yet site plan endorsed should comply, unless compelling reasons or hardship can be demonstrated;

·        Applications that are in process that are endorsed, but not yet site plan approved should apply to the extent possible.  Compliance will depend on the status of building permit drawings and contractual arrangements with suppliers and tenants/purchasers;

·        Applications that have received site plan approval shall proceed as approved (it should be noted that many of the recent developments in this category are achieving some form of LEED accreditation/sustainability measures in any event);

·        All new, incoming applications should comply.

 

2        For low density residential draft plans of subdivision:

·        Applications that are in process, but not yet draft approved should comply with Energy Star requirements at the building permit stage, unless compelling reasons or hardship can be demonstrated;

·        Applications that are in process that are draft approved should comply if possible.  Compliance will depend on the status of building permit drawings and contractual arrangements with suppliers and purchasers;

·        Applications that have received draft plan approval and are registered or close to being registered shall proceed as approved;

·        All new, incoming applications should comply.

 

3        For ICI development:

  • staff will continue to promote many of the measures contained in LEED and Energy Star, such as minimizing heat island effect, minimizing storm water run-off, increasing infiltration, rain water harvesting, grey water re-use, cool roofs and green roofs, permeable paving, landscaping, energy efficiency and general water conservation with our ICI applicants, depending on the size and tenure of the project.

 

Staff will also report back to Development Services Committee on any implementation issues arising from the proposed transition guidelines, following the developer round table meeting.

 

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

Not applicable.

 

ENVIRONMENTAL CONSIDERATIONS:

The completion of Sustainable Development Standards and Guidelines will advance the Town’s environmental agenda.

 

ACCESSIBILITY CONSIDERATIONS:

Not applicable.

 

ENGAGE 21ST CONSIDERATIONS:

Sustainable Development Standards and Guidelines align with the following key Town of Markham Corporate Goals: Environmental Focus, Infrastructure Management, Managed Growth and Quality Community.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable.

 

RECOMMENDED BY:  

 

 

 

 

 

________________________________           ________________________________

Valerie Shuttleworth, M.C.I.P., R.P.P.                 Jim Baird, M.C.I.P., R.P.P.

Director of Planning and Urban Design                 Commissioner of Development Services

ATTACHMENTS:

 

“Appendix A”             - Request for Proposals

                                  - Sustainable Development Standards and Guidelines

 

 

 

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