SUBJECT:

Residents’ petition for the installation of a sanitary sewer in pagÉ Road as a local improvement

OBJET:

pÉtition pour l’installation d’Égouts sanitaires comme amÉnagement local par les rÉsidents du chemin pagÉ

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council approve:

1. A resolution declaring it desirable to undertake construction of a local improvement sanitary sewer on Pagé Road from the limits of Mud Creek in the north to Chemin du Chantier in the south and its notice of intention to apply to the Ontario Municipal Board (OMB) under the provisions of the Local Improvement Act;

2. A by-law, to come into effect upon OMB approval, for undertaking of the works as a local improvement with the costs of the work to be recovered from benefiting property owners, under the provisions of the Local Improvement Act, in accordance with the following conditions:

a) that the assessed property owners be entitled to pay the local improvement charges in lump sum or ten equal annual installments;

b) that initial estimates of special assessment rates, the City share of the costs, reductions and adjustments as presented in the Local Improvement Report attached to this report are accepted subject to final review through the court of revision for the project;

c) that to the extent owners may choose to amortize the charges over a ten year period, debenture authority be established in the estimated maximum amount of $525,000 for this project.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique fasse les recommandations suivantes au Conseil municipal :

1. Appuyer une preposition énonçant qu’il est souhaitable d’entreprendre la construction d’égouts sanitaires comme aménagement local sur le chemin Pagé, des limites de Mud Creek, au nord, au chemin du Chantier, au sud, ainsi que son avis d’intention à la Commission des affaires municipales de l’Ontario de l’appliquer comme telle, en vertu de la Loi sur les aménagements locaux ;

2. Adopter un règlement municipal, en vigueur dès son approbation par le Conseil, pour le début des travaux d’aménagement local, et que l’on recouvre les coûts de ceux-ci auprès des propriétaires bénéficiaires, en vertu de la Loi sur les aménagements locaux, selon les modalités suivantes :

a) que les résidents qui possèdent une propriété évaluée aient la possibilité de payer les frais liés à l’aménagement local en un seul versement ou en dix versements annuels égaux ;

b) que les estimations préliminaires des taux spéciaux d’évaluation, la part des coûts payés par la Ville, les réductions et les redressements, tels que présentés dans le Rapport sur l’aménagement local ci-joint, soient acceptés sous réserve d’un examen final par la commission de révision pour le projet ;

c) que, dans la mesure où les propriétaires peuvent choisir d’amortir les frais sur une période de 10 ans, l’on autorise l’émission d’une débenture pour une somme maximale estimative de 525 000 $ pour ce projet.

BACKGROUND

Local Improvement - Installation of Services in Established Areas

Capital costs associated with the initial construction of items such as sewers, watermains, roads and streetlights are, for the most part, borne by the initial land developer. In the case of residential subdivisions in “newer” fully serviced subdivisions such as those in Orléans, Barrhaven, etc., the developer of these lands then recovers these initial servicing costs (roads, sewers and utilities) through the purchase price of the homes.

In older areas where the initial development did not include services such as sanitary sewers, retrofit improvements can be undertaken through a process referred to as a Local Improvement. In these instances, the costs associated with the retrofit installations are shared by those property owners, who derive benefit from the improvement (this includes the City in the case of City-owned land). This cost assessment is consistent with residential subdivision development, in that those benefiting from the services share in the initial cost of construction. The difference is that servicing costs through a local improvement in an existing area are not combined with the initial sale of the property. The City’s local improvement policy provides for guidelines determining the assessable costs for work to be undertaken. The costs assessed and the rate of assessment to property owners are based on the actual construction costs once complete.

Local improvement installations are typically only undertaken upon majority support of property owners in the affected area and are subject to receipt of a petition supporting the work. Once a petition has been certified for majority support, the project is included as part of the City’s capital budget deliberation process. The City initially pays the costs of the improvement work and then recovers the required funding from the affected landowners as directed by City Council. These costs provide for the main sewer construction and a service connection to the property line. Extension of the service pipe from the property line to the house and internal plumbing conversions are at the property owner’s expense (costs vary from lot to lot).

The department will be providing Committee and Council with a new comprehensive Local Improvement Policy and Practices following final release of the pending Municipal Act regulations governing such undertakings.

Request for Installation of a Sanitary Sewer in Pagé Road

Residents in the northern portion of Pagé Road between Mud Creek and Innes Road were provided connection to the central wastewater system through local improvement process in the mid 1990’s in conjunction with progressive development of the East Urban Community.

Topography for the area is such that lands south of Mud Creek require installation of a pump station and force main to accommodate conveyance of a piped wastewater collection system. Residents of this southern portion of Pagé Road (between Chemin du Chantier and Mud Creek) are currently serviced with central piped water supply, open ditch surface drainage and private wastewater disposal systems (septic tanks), some of which are failing. Although interest has been expressed by property owners regarding provision of local improvement sanitary sewer servicing to this area since the mid 1970’s, major trunk servicing necessary to provide outlet for the local sewers is only now being constructed as part of the East Urban Community development. A map of the subject area is attached (Attachment 1).

The recently proposed construction of the Forest Valley Pump Station and Forcemains in Chemin du Chantier and Pagé Road, are the most significant major infrastructure necessary to provide outlet for a local sewer, servicing residents of Pagé Road between Chemin du Chantier in the south and north to Mud Creek. News of the impending construction of these trunk services in 2002 prompted renewed request by property owners in the southern portion of Pagé Road to coordinate construction of a local sanitary sewer in conjunction with the major development servicing, in order to capitalize on potential cost savings, minimize disruption and inconvenience to residents and impacts to the road surface.

Staff communicated the local improvement process and majority support requirements to residents at an open house in July 2002. Copies of the information provided are attached (Appendix 2). The petition process commenced following the open house and was received by the City in October 2002.

In order to be eligible for commencement under the Local Improvement Act, a petition must be signed by at least two-thirds of the owners having at least 50% of the assessed value of the land. As received, the petition in respect of Pagé Road, has been signed by 20 of 32 owners, which equates to 62.5% of property owners, representing 59.6% of the assessed property values. Using the guideline criteria for majority support as specifically set out in the former Local Improvement Act, the petition does not meet the ‘two-thirds of the owners‘ sufficiency requirements and could not be certified for sufficiency by the City Clerk.

DISCUSSION

Legislative Authority

Until 31 December 2002, municipalities could assess costs associated with the installation of works such as local sewers and watermains to property owners through provisions under the Local Improvement Act and/or the Municipal Act. Notwithstanding proposed new regulations under the new Municipal Act that took effect 01 January 2003, the Province enacted regulation 390/02 (20 December 2002) that provides for continuation of the Local Improvement Act in its current form until 31 March 2003 allowing that any matter or proceeding commenced under that Act before 01 April 2003 be continued and finally disposed of under the provisions of that Act.

Scope of Work

The proposed work is for the installation of approximately 650 metres of 250 mm diameter sanitary sewer sized to accommodate wastewater drainage from only those existing lots fronting on Pagé Road. Included in the works would be private building connection pipes between the main and limits of the right-of-way and any surface reinstatement necessary to make good the areas disturbed throughout construction.

The matter of a sanitary sewer local improvement in Pagé Road, as identified on the petition document, is not eligible for completion under the terms of a successfully petitioned work because its 62.5% property owner rate versus the Acts stipulated 66.7% requirements. The percentage shortfall represents approximately two properties over the length of the proposed work.

It is important to consider that two properties that abut the proposed works are currently identified as future road right-of-way links with Pagé Road. Although these future rights-of-way are currently in private ownership, they will come into City ownership as part of the community development plan implementation. These two properties were included in the calculation for sufficiency of the petition. Given their impending designation as City-owned rights-of-way, the existing developer interests owning these properties would likely not entertain being assessed costs associated with the proposed works. Had they been excluded from the calculation, as is the case for City-owned street intersections, the petition would have fulfilled the 66.7 percent of the property owners signing criteria.

Acknowledging the proposed use of these two properties and that soliciting their support signatures would require the City’s concurrence to pay their share of the costs, the Department is satisfied that residents leading the petition have appropriately circulated the document and that the majority of the current property owners that would be subject to cost recovery, support the installation of the local sanitary sewer. In making this statement, the Department considered the following key issues detailing the benefit in proceeding with the construction of a sanitary sewer on Pagé Road, in conjunction with the proposed installation of the Forest Valley Pump Station and Forcemains:

1. The Forest Valley Pump Station project, which has approved capital funding to proceed in 2003, relates to the construction of a pumping station on Chemin du Chantier, with twin sewage forcemains to be located on Pagé Road. Benefits in reduced construction costs (to be paid by the benefiting owners) and reduced disruption to the community are achieved by constructing the Pagé Road sanitary sewer concurrent with the twin force main construction.

2. Currently, the area subject to petition is on individual private services for sanitary waste disposal. As septic systems reach their useful life and begin to fail, health concerns present themselves and there are some cases in this community of aging septic systems that should be replaced immediately. The installation of a sanitary sewer permanently eliminates this recurring source of potential health issues in the urban area.

3. The urban area abuts the north limit of this community. With the future development of the surrounding area, the urban area on full central services will eventually surround this section of Pagé Road. Without an upgrade to sanitary sewer servicing, this area has the potential to become an isolated area of privately serviced properties within the urban area.

4. Two properties that abut the proposed works, currently identified on the East Urban Community Secondary Development Plan, Phases 1 & 2, approved by former Gloucester City Council on 15 December 2000, are indicated to be future road right-of-way links with Pagé Road. Although these future rights-of-way are currently in private ownership, they will come into City ownership as part of the current community development plan implementation. These properties were included in the calculation for sufficiency of the petition, however, had they not been included in the calculation, the petition would have fulfilled the 66.7% of the property owners signing criteria. Assessed costs attributable to this frontage could arguably be considered as part of the City share for intersection crossings.

5. Twenty of thirty-two property owners subject to assessment of costs have currently signed the petition in favor of the work (Attachment 3). In addition, a twenty-first property owner has recently indicated support for the project and willingness to sign the petition, which could potentially bring the ‘two-thirds of the owners‘ sufficiency requirement of the former Local Improvement Act from 62% to 66%.

6. There is a need to proceed to final design and tender for the work in order to capitalize on a coordinated tender with the proposed trunk sewer installations. Timing for tender and construction of the major development servicing is dependent upon final negotiation of development control conditions, and as such, commissioning of the sewer system is not likely until late 2003 or early 2004.

7. Proceeding with a request to the OMB for undertaking of the local improvement provides for an assessment of the merits of the works that is independent of any proponent/opponent interests that could influence petition results.

SUMMARY

Under the Local Improvement Act, a municipality may pass a by-law for undertaking local improvement works under four scenarios:

· upon successful petitioning by proponents of the works;

· upon Council initiative without petition and subject to petition against the work that would prohibit the work for 2 years;

· upon OMB approval without petition and subject to opponents appeal to the board;

· upon determination of the board of health, the works are necessary for sanitary conditions in the public interest and subject to petition for relief to the OMB.

The matter of a sanitary sewer local improvement in Pagé Road, as identified on the petition document, is not eligible for completion under the terms of a successfully petitioned work because its 65.6% property owner rate versus the Acts stipulated 66.7% requirements. The percentage shortfall represents approximately two properties over the length of the proposed work.

There are economics of scale and significant technical merits to undertaking the construction of the local sanitary sewer for existing residences in coordination with the larger development works project.

Given the potential for tender of the Forest Valley Pump Station project in 2003, and the petition sufficiency shortfall, proceedings with a request to OMB to undertake the local sanitary sewer work as a local improvement work appears to be the most effective means of addressing this project.

Section 8 of the Act sets out the following requirements be fulfilled, in order to proceed with Board approval:

Council resolution declaring that it is desirable to undertake the work as a local improvement;

Publication of a Notice of Intention to apply to the Board to undertake the work as a local improvement once a week for two weeks with provision that any owner objecting to the work may file notice of such with the Clerk for a period starting 21 days from the first date of publication;

Passing of a by-law authorizing the work subject to the by-law not coming into effect until Board approval.

Accordingly, in order to provide for a coordinated design and implementation to capitalize on economies of scale, the Department is requesting Committee and Council endorsement to proceed with the works as a local improvement through application to the OMB for its approval of such and approval of a by-law for the works.

CONSULTATION

City staff hosted an open house session in July 2002 to discuss the local improvement sewer installation, its implications to property owners and the petition requirements. In addition, background information with respect to the works to be constructed, the estimated cost and resulting charge was provided to the lead petitioner circulating the petition.

The Local Improvement process is one that is led by the representatives of the landowners who desire the improvement to be constructed. The requirement to have the consent of two-thirds of the owners ensures that a high degree of support is achieved before the work proceeds. The petition indicates that the Pagé Road community is within 4.2% of achieving consent of two-thirds of the property owners and does have greater than 50% of the assessment. The two abutting properties that are future rights-of-way are a technicality in the calculation for sufficiency.

Notification requirements as prescribed under Section 8 of the Local Improvement Act will also be undertaken prior to construction of the proposed works.

A court of revision will also be held following construction with notice of the proposed cost assessment to each of the affected owners before finalizing the special assessment roll for the project.

FINANCIAL IMPLICATIONS

The total cost of these works is estimated to be $525,000. Under the Act, the City is responsible for that share of the cost of the work, resulting from road right-of-way and City-owned property frontage along the proposed route, from reductions in respect of those properties in the Local Improvement Area which are corner lots and/or irregularly shaped lots and/or lots unsuitable for building purposes and that require adjustment on a fair and equitable basis and for those items specifically designated as the municipality’s share under the Act.

The estimated cost of the City’s portion of the local improvement charge for the Pagé Road sanitary sewer is approximately $81,000. The estimated cost to the benefiting property owners is approximately $444,000. The 2003 capital budget has allocated $525,000 to this project, with an identified recovery of $425,000 through local improvement charges.

Affected property owners will have an opportunity to pay their assessed charges in lump sum payment within a period of 21 days following establishment of the special assessment roll. Following this timeframe, the charges will be added as a special assessment charge to the owners tax bill annually for ten equal annual payments inclusive of carrying charges. To the extent owners may choose to have the charges amortized over the ten year period, debenture authority will be required for the project. Debenture costs are added to the assessment costs to the resident if the longer-term option is taken.

ATTACHMENTS

Attachment 1 – Site Map

Attachment 2 – Open House Session

Attachment 3 – Petition for Works

Attachment 4 – Local Improvement Report

Attachment 5 – Notice of Intention

DISPOSITION

Transportation, Utilities and Public Works will return to Committee and Council to complete the court of revision process and establish final charges. The Transportation, Utilities and Public Works Department will administer construction. Implementation of the local improvement process will be in conjunction with Legal Services and Financial Services.

Attachment 1

Attachment 2
Attachment 3

ATTACHMENT 4

Local Improvement Report

1.0 Proposed Works

The City of Ottawa received a petition from residents requesting the construction of a local sanitary sewer in Pagé Road, between Chemin du Chantier and Mud Creek. The City considers it desirable to undertake the work of the sanitary sewer in Pagé Road, as identified on the petition document, as a local improvement through application to OMB for approval for the undertaking under the terms of the Local Improvement Act and subject to passage of a by-law authorizing the work as a local improvement.

In construction of the local sanitary sewer in Pagé Road, the following works will be undertaken:

1. Installation of a sanitary sewer and all related appurtenances, including maintenance access points within the road right-of-way;

2. Installation of private sanitary sewer building connections and related appurtenances between the main and the limits of the rights-of-way;

3. Reinstatement of the areas disturbed by the construction activities.

2.0 Design Considerations

Construction of the Forest Valley Pump Station project, which has approved capital funding to proceed in 2003, is the most significant major infrastructure necessary to provide outlet for a local sewer servicing residents of Pagé Road between Chemin du Chantier in the south and northerly to Mud Creek. The Forest Valley project is being constructed for developer interest in the area and provides for a major pump station on Chemin du Chantier and twin forcemains in Pagé Road that provide wastewater collection capacity to portions of the East Urban Community development area.

There are economies of scale and significant technical merits to undertaking the construction of a local gravity sewer for existing residences in coordination with the larger development works project. The proposed 650 metre, 250 mm diameter gravity sanitary sewer between Mud Creek in the North and the collector sewer being constructed in Chemin du Chantier to the south, has been designed to accommodate wastewater drainage from only those existing lots fronting Pagé Road. No over sizing or allowances have been made for any lands or portions of land intended to drain to the major collector facilities identified in the master servicing and drainage studies supporting the East Urban Community Secondary Development Plan, Phases 1 & 2, approved by former Gloucester City Council on 15 December 2000.

This specifically relates to those parts of Lot 6, Concession 3, Ottawa Front and West Part Lot 5, Concession 3, Ottawa Front designated as future City road rights-of-way and no connections will be permitted to the 250 mm diameter sewer from these lands.

Design is to current MOE requirements and City standards.

3.0 Frontages and Assessments

The total frontage in the Local Improvement Area shown on the attached site plan is approximately 1113 metres. Pursuant to Sections 23 and 28 of the Act, the assessable frontage for these works has been calculated to total approximately 942 metres.

4.0 Estimated Costs

The estimated costs of the work is for the installation of approximately 650 metres of sanitary sewer and all associated appurtenances such as maintenance access points, servicing sleeves etc. that are necessary for provision of the wastewater service. A separate charge for each and every private service connection provided will be assessed to respective owners.

4.1 Apportionment of Costs

The property owner portion of the cost shall be assessed on the basis of a fixed per metre frontage rate. Based on total frontage of 1113 metres abutting the work, the estimated per metre frontage charge rate for the project is $472 /m.

Pursuant to Sections 23 and 28 of the Act, the City's portion of the cost of the proposed works includes:

One third of the cost of the sewer greater than 675 mm (nil);

· the cost of the work incurred at street intersections ( 120.8 metres);

· that portion of the cost equal to an amount based on the property frontage or flankage, whichever is applicable, for those properties in the Local Improvement Area which are designated as future City Rights-of-Way in the East Urban Community Secondary Development Plan, Phases 1 & 2, approved by former Gloucester City Council on 15 December 2000 (those parts of Lot 6, Concession 3, Ottawa Front and West Part Lot 5, Concession 3, Ottawa Front) and abut the route of the proposed work (50metres);

· that portion of the cost equal to an amount based on the property frontage or flankage, which ever is applicable, for those properties in the Local Improvement Area which are corner lots and/or irregularly shaped lots and/or lots unsuitable for building purposes and that require adjustment on a fair and equitable basis (nil).

The apportionment to the benefiting properties has been estimated as follows:

The City’s share of the cost is estimated to be $81,000.

Final assessment and apportionments will be based on the actual costs of the works once complete. Pursuant to section 43 of the Act, a court of revision will be convened following construction to review the special assessment roll prepared for the project and hear any property owner complaints regarding the assessment. The court of revision has the authority to review such complaints and determine any corrections deemed necessary in respect to names, to lot measurements, to reductions and allowances, to the rate per metre and to the statement of actual costs of the works it considers necessary to ensure assessment is on a fair and equitable basis.

These changes shall not alter the proportion of costs between property owner and the City established in the bylaw for the works but they form the basis to establish the final special assessment roll for the project.

5.0 Payment

The costs summarized are estimates only. Final assessment and apportionments will be based on the actual costs of the works once complete. A court of revision will be convened following construction pursuant to Section 43 of the Act that will establish the final special assessment roll for the project.

Owners will be provided an opportunity to pay in lump sum the amount of the assessed costs for a period of 21 days upon completion of the special assessment roll following which any unpaid assessed costs will appear as a special assessment charge on that owner’s tax bill annually for ten equal annual payments, inclusive of carrying charges.

The life of the works is estimated to be in excess of 50 years. Ten-year debentures in the maximum amount of $525,000 will be issued for the costs of the works. Based upon the ten-year debenture period at 8%, the estimated equal annual costs for the established frontage rate of $472 is $541.80/metre frontage.

ATTACHMENT 5

Notice of Intention

**Notice of Intention under subsection 8 (3) of the Local Improvement Act for the installation of a Local Improvement Sanitary Sewer in Page Road**

Take notice that

1. The council of the Corporation of the City of Ottawa intends to construct as a local improvement sanitary sewer on Page Road between 3096 Page Road and 2687 Page Road and intends to specially assess a part of the cost upon the land abutting directly on the work

2. The estimated cost of the work is $525,000.⁰⁰, of which $81,000.⁰⁰ is to be paid by the Corporation. The estimated cost per metre frontage is $472.⁰⁰. The special assessment is to be paid in ten equal annual instalments.

3. Application will be made by the Corporation to the Ontario Municipal Board for its approval of the undertaking of the work and,

a) where this Form is published under subsection 8 (3) of the Local Improvement Act, any owner may within twenty-one days after the first publication of this notice file with the clerk his objection to the work being undertaken; or

b) where this Form is mailed and published under subsection 8 (4) of the said Act, any owner may within twenty-one days after the publication or mailing of the notice, whichever is later, file with the clerk the owner’s objection to the work being undertaken.

4. The Board may approve of the work being undertaken, but before doing so it may appoint a time and place when any objections to the work will be considered.

Dated at Ottawa this 18 day of March 2003 Pierre G. Page

Clerk, City of Ottawa

This noticed was first published March 29, 2003

**Avis d’intention conformément au paragraphe 8 (3) de la Loi sur les aménagements locaux pour l’installation des égouts sanitaires dans le Chemin Pagé**

Avis vous est donné que :

1. Le conseil de la ville d’Ottawa à l’intention de construire à titre d’aménagement local les égouts sanitaires dans le chemin Pagé entre le 3096 chemin Pagé et le 2687 chemin Pagé et à l’intention d’assujettir à un impôt extraordinaire, en vue de payer une partie du coût, les biens-fonds attenant directement à l’ouvrage.

2. Le coût estimatif de l’ouvrage est de 525,000$, dont 81,000$ doit être payés par la municipalité. Le coût estimatif par mètre de longueur de façade est de 472$. L’impôt extraordinaire doit être payé en dix versements annuels égaux.

3. La municipalité présentera une requête à la Commission des affaires municipales de l’Ontario pour lui demander son approbation à ce que l’ouvrage soit entrepris et :

a) si la présente formule est publiée conformément au paragraphe 8 (3) de la Loi sur les aménagements locaux, tout propriétaire peut, dans les vingt et un jours de la première publication du présent avis, déposer auprès du secrétaire un avis d’opposition à ce que l’ouvrage soit entrepris ;

b) si la présente formule est mise à la poste et publiée conformément au paragraphe 8 (4) de la loi, tout propriétaire peut, dans les vingt et un jours de la date de publication ou de la date de mise à la poste de l’avis, si cette dernière date est postérieure, déposer auprès du secrétaire un avis d’opposition à ce que l’ouvrage soit entrepris.

4. La Commission peut donner son approbation à ce que l’ouvrage soit entrepris et elle peut, auparavant, fixer la date, l’heure et le lieu de l’audience où seront étudiées les oppositions à l’ouvrage.

Fait le 18 mars 2003 Pierre G. Page

Secrétaire de la ville d’Ottawa

Cet avis a été publie premièrement le 29 mars 2003