10. FRONT ENDING AGREEMENT FOR THE EAST URBAN COMMUNITY
STORMWATER MANAGEMENT POND# 1 AND OVER-SIZED TRUNK STORM SEWERS

ACCORD DE FINANCEMENT INITIAL VISANT LE BASSIN DE GESTION DES EAUX PLUVIALES N^O 1 DE LA COLLECTIVITÉ URBAINE EST ET LES ÉGOUTS PLUVIAUX SURDIMENSIONNÉS

Committee RecommendationS

That Council:

1. Authorize the City to enter into a Front Ending Agreement with the Richcraft Group of Companies for cost reimbursement for the design and construction of the East Urban Community (EUC) Storm Water Management Pond #1 located south of Innes Road and east of Page Road, based upon the principles set forth in Document 1, and Council approved Front Ending Policy in Document 2 with the final form and content of the Front Ending Agreement being to the satisfaction of the Deputy City Manager, Planning, Transit, and the Environment Department and the City Solicitor;

2. Approve the expenditure of $6,173,000.00 for land acquisition, update in the design, and the construction of EUC Pond #1 be approved subject to the execution of the Front Ending Agreement;

3. Authorize the City to enter into subdivision agreements which provide for the remuneration of land costs associated with Pond #1 and the reimbursement of trunk storm sewer over-sizing in accordance with the principles set forth in Document 2; and

4. Authorize the City to increase existing internal order 900814 from $4,300,000 to $17,218,000 for the Pond 1 land acquisition, design update, construction, and trunk storm sewer over-sizing tributary to Pond #1.

RecommandationS du comité

Que le Conseil :

1. Autorise la Ville à conclure un accord de financement initial avec Richcraft Group of Companies en vue du remboursement du coût de conception et de construction du bassin n^o 1 de gestion des eaux pluviales de la Collectivité urbaine Est (CUE), situé au sud du chemin Innes et à l'est du chemin Page, en vertu des principes exposés dans le document 1 et de la politique de financement initial approuvée par le Conseil et énonce dans le document 2, la forme et le contenu définitifs de cet accord devant être à la satisfaction du directeur municipal adjoint d'Urbanisme, Transport en commun et Environnement et du chef du contentieux;

2. Approuve des dépenses de 6 173 000,00 $ pour l'acquisition de terrains, l'actualisation de la conception et la construction du bassin n^o 1 de la CUE, sous réserve de l'application de l'accord de financement initial;

3. Autorise la Ville à conclure des accords de lotissement qui prévoient la rémunération des coûts des terrains visés par le bassin n^o 1 et le remboursement de l’égout pluvial principal surdimensionné, conformément aux principes énoncés dans le Document 2; et

4. Autorise la Ville à accroître l’ordre interne 900814 existant, pour le faire passer de 4 300 000 $ à 17 218 000 $ en vue de l’acquisition foncière visant le bassin n^o 1, de l’actualisation de sa conception, de sa construction et de l’aménagement de l’égout pluvial principal surdimensionné affluent du bassin n^o 1.

Documentation

1. Deputy City Manager's report (Planning, Transit and the Environment) dated 31 July 2007 (ACS2007-PTE-APR-0094).

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

31 July 2007 / le 31 juillet 2007

Submitted by/Soumis par : Nancy Schepers,

Deputy City Manager / Directrice municipale adjointe,

Planning, Transit and the Environment / Urbanisme, Transport en commun et Environnement

Contact Person/Personne ressource : Michael Wildman, Acting Manager/Gestionnaire intérimaire, Infrastructure Approvals/Approbation des demandes d’infrastructure

Planning Branch/Direction de l’urbanisme

(613) 580-2424 x 27811, Mike.Wildman@ottawa.ca

Cumberland (19)

Ref N°: ACS2007-PTE-APR-0094

SUBJECT:

FRONT ENDING AGREEMENT FOR THE EAST URBAN COMMUNITY STORMWATER MANAGEMENT POND# 1

AND OVER-SIZED TRUNK STORM SEWERS

OBJET :

ACCORD DE FINANCEMENT INITIAL VISANT LE BASSIN DE GESTION DES EAUX PLUVIALES N^O 1 DE LA COLLECTIVITÉ URBAINE EST ET LES ÉGOUTS PLUVIAUX SURDIMENSIONNÉS

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend Council:

2. Approve the expenditure of $6,173,000.00 for land acquisition, update in the design, and the construction of EUC Pond #1 be approved subject to the execution of the Front Ending Agreement;

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande que le Conseil :

BACKGROUND

The Gloucester East Urban Community (EUC) is bounded by Innes Road, Page Road, Mer Bleue Boulevard and the Via Rail line adjacent to the Mer Bleue Wetland, in the former City of Gloucester. In 1992, the City of Gloucester completed a Master Drainage Plan (MDP) Report, pursuant to the Provincial Class EA process. The MDP report identified a requirement for a stormwater management pond within the Mud Creek Valley, known as Pond #1, to be situated in the central area of the EUC area just south of Innes Road near the Hydro One Electric Power Corridor and east of Page Road.

In 2000, the City of Gloucester completed a Schedule B Class Environmental Assessment and design, which further refined details of Pond #1. In 2001, Council approved $4,300,000.00 in Capital Account 900814 to proceed with the land acquisition and construction of Pond #1. Since 2001, the City has undertaken negotiations and acquired some of the lands for the construction of the pond. The majority of required lands will be conveyed through Planning Act dedications. One of the constraints to allowing development to proceed within the EUC was the lack of a sanitary outlet. In 2006/07, the City completed the construction of the Forest Valley Sanitary Pump Station, which provided sanitary servicing to lands which are tributary to EUC Pond #1, thus sparking development interest in that area. Pond #1 will provide a storm outlet for a large area of approximately 335ha within the EUC. The City will be the constructor of Pond #1 due to a number of factors such as fragmented ownership, geotechnical issues, and the coordination of a large trunk watermain that is also required to be constructed underneath the pond.

The construction of EUC Pond #1 is a Development Charge item which is subject to By-Law No. 2004-310, and amending By-law 2006-203, Area E-3, being a by-law for the imposition of development charges for Gloucester East Urban Community Stormwater Facilities as approved on July 14, 2004 and amended in April 26, 2006. A copy of the Development Charge Area E-3 collection area is shown in Document 3.

DISCUSSION

General

The Richcraft Group of Companies has submitted a Plan of Subdivision for approval within the catchment area of Storm Water Management Pond # 1. As part of the conditions of draft plan approval, the developer is required to front end the cost of construction of Storm Water Management Pond #1 and Over-Sized Trunk Storm Sewers in accordance with the approved EUC Infrastructure Servicing Study Update.

By-Law Amendment

Storm Water Management Pond # 1 is subject to Development Charge By-Law 2004-310, and amending By-Law 2006-203, which requires the developers to enter into a Front Ending Agreement with the City to build the storm water management pond. In addition, consideration was given to an amendment to the Area Specific Development Charge to determine whether an adjustment to the rate was required to support the increase in the cost of construction since the passing of the original Development Charge By-law. As a result of the annual indexing of the Area Specific Stormwater Development Charge it was determined that an adjustment to the Development Charge rate is not required at this time.

Front Ending

The estimated cost for the update to the design, and construction of EUC Stormwater Management Pond #1 is $5,060,000. The Front Ender is prepared to front end the total cost to update the design, and the construction of the stormwater management pond. The Front Ender would be paid back based on the principles set out in Document 1 and pursuant to the Council approved front ending policy in Document 2.

Through the plan of subdivision process, owners will be compensated for the value of the land where the stormwater management pond will be situated, subject to a land appraisal approved by the City. The value for all of the land required for Pond #1 is set at an upset limit of $1,113,000.00. This amount includes an amount for the Front Ender's land which is considered to be developable, as well as other lands required to be purchased by the City for the construction of Pond #1. In addition, through the plan of subdivision process, owners will be compensated for the value of any eligible Trunk Storm Sewer Over-sizing in accordance with the reimbursement schedule within the Area-Specific Stormwater Development Charge By-law.

CONSULTATION

The Richcraft Group of Companies is a benefiting owner of the tributary area of EUC Stormwater Management Pond #1 who has agreed to act as the sole Front Ender in accordance with the principles set forth in Document 1 and Document 2. The public meeting will occur at the Corporate Services and Economic Development Committee on September 4, 2007. A notice of the proposed Front Ending Agreement was advertised in Le Droit and Citizen newspapers on August 17, 2007 and August 31, 2007.

FINANCIAL IMPLICATIONS

The total estimated cost for the design, construction, and land acquisition for EUC Stormwater Management Pond #1 is $6,173,000. The estimated cost for the Over-Sized Trunk Storm sewers tributary to Pond 1 is $11,045,000. These sewers serve a very large area of both residential and non-residential lands and will be constructed as needed to support growth. Subject to Council approval, the Front Ender would be paid back pursuant to the principles set out in Document 1 and the Council Approved Front Ending Policy as noted in Document 2.

The total estimated costs to design, construct, and acquire land for Stormwater Management Pond #1, and the total cost for over-sized trunk storm sewers tributary to Pond #1 are summarized in the following table:

Column 1 Development Charge Item	Column 2 Development Charge Up-Set Limit	Column 3 Criteria for Repayment
Land	$1,113,000	Upset limit based on land appraisal
Construction of Pond 1	$5,060,000	Repayment based on actual value to an upset limit of $5,060,000
Over-Sized Trunk Storm Sewers Tributary to Pond 1	$11,045,000	Upset limit based on reimbursement table within By-law 2004-310 as amended.
Total	$17,218,000

The estimated annual operating impact to the City is estimated to be 0.5% of the construction cost of the stormwater management pond, amounting to $30,000.00 per year, beginning in 2009. It is recommended that the existing Capital Account 900814 be used to fund this capital project, reimburse the Front Ender and acquire lands where the pond is to be situated, on a quarterly basis. As a result of the increase in cost, the provision for land, and the required Council authority to reimburse for over-sized trunk storm sewers tributary to Stormwater Management Pond #1, there is a requirement to authorize an increase to account 900814 from the existing authority of $4,300,000.00 to $17,218,000. On May 11, 2005, Council approved the Front Ending report for the construction of EUC Stormwater Management Pond 3 and approved authority for $4,100,000. The Front Ending of Pond #1 works, and Pond 3 works (as noted herein), as well as, any future Development Charge related storm works within Area Specific Development charge Area E-3 (Document 3) will be repaid on a pro-rata basis as Development Charge Revenue is collected.

The Front Ender will be required to post securities for the total cost of the project.

The City will be the constructor and will invoice the Front Ender. The Front Ender shall remit payment within 30 days for work completed. The City will release the securities quarterly based on payments received by the Front Ender.

DISPOSITION

The report will be forwarded to City Council for a decision on September 12, 2007. In regards to the Front Ending Agreement the final form of the agreement will be prepared by Legal Services in consultation with the Planning, Transit and the Environment Department.

Document 1

FRONT ENDING AGREEMENT PRINCIPLES

1. The Front Ender shall be required to post a letter of credit or cash deposit equal to the estimated value of the design update and the construction of Pond 1 for a total amount of $5,060,000.00.

2. The contract for the construction of Pond 1 shall be administered by the City. The City shall approve the tendering for the construction of the pond.

3. The City shall invoice the Front Ender and the Front Ender shall remit payment within 30 days for works completed.

4. The cost of the design update and the construction of the Pond 1 is set at an upset limit of $5,060,000.00. Should the cost exceed the upset limit, the additional cost shall be borne by the Front Ender, and the City shall not be obligated to compensate the Front Ender for additional costs.

5. The repayment of the construction costs for Pond 1 shall be pursuant to the Council approved Front Ending Policy as referenced in Document 2.

6. The Front Enders will be entitled to receive indexing pursuant to conditions noted in Document 2.

7. Should other Development Charge storm related works be constructed during the life of this Front Ending Agreement as identified in By-Law 2004-310 (within the stormwater collection area identified in Document 3), the Front Ender acknowledges that they will share equally with other stormwater drainage projects in the distribution of Development Charge revenue collected.

Document 2

COUNCIL APPROVED FRONT ENDING POLICY

Front Ending Agreements are requested by developers who wish to have specific growth-related capital works in place in advance of the City’s capital project plans for emplacement of these same works: developers agree to finance the works at the “front end” and recover their costs from the City at a later date. The following conditions must be met in order for the City to enter into a Front Ending Agreement:

All Front Ending Agreements with the City will be for growth-related capital works that have been included in a development charge study.

Stormwater ponds and related sewer works that are 100% development charge funded in the recommended by-laws will be paid back to the developer based on revenues as they are collected from the designated area. This means that at no time are the repayments to exceed the revenues received. Each Front Ending Agreement will define the geographic area involved and a separate and specific deferred revenue account may be set up to keep track of the revenues collected and payments made. Crediting will also be allowed for the Front Ending Agreements related to stormwater ponds.

For all other capital projects – A lump sum payment (both the development charge portion and the City portion) will be made to the developer in the year the project is identified in the City’s ten year capital plan at the time the Front Ending Agreement is approved. Should growth occur earlier than forecasted, then repayment would be accelerated to reflect the revised timing the City would have budgeted for the project. If growth occurs more slowly than forecasted, then the City will have an additional three years (three years from the year the project was identified in the ten year plan) to make repayments. Only in this latter case will the City’s portion of the payment be indexed beginning with the year the project was identified in the ten-year plan.

The development charge portion that will be reimbursed will be indexed yearly in accordance with the rate of indexation pursuant to the development charge by-laws. (City Council approved February 7, 2005)

Given that the City will be assuming operating costs earlier than anticipated through the Front Ending Agreement process, the City is not to pay any carrying costs to the developer.

All development charges payable by developers must be paid up front in accordance with the City’s by-law. With the exception of the stormwater ponds and related sewer works, there will not be any crediting allowed as a result of entering into a Front Ending Agreement. (On December 8, 2004, City Council approved, “That staff be directed to work with the industry to develop the details of a credit policy to be incorporated into the front ending policy”.)

In the case where a developer(s) has front ended a project that at the discretion of the City benefits other developers, those developers who were not part of the Front Ending Agreement shall pay all of their development charges owed either at the time of registration of a plan of subdivision or upon the issuance of the first conditional building permit, whichever comes first. (City Council approved July 14, 2004 Motion 16/5)

A report to Council is required to authorize staff to enter into a Front Ending Agreement. The recommendation will include the financial commitment of the City, specify the funding source(s), the project timeline and where necessary, request that a specific deferred revenue account be established. The financial comment in the report will specify the timelines for the repayment, an operating budget impact and an estimate of the year in which the operating budget impact will begin. It should also indicate the year in which the project was originally identified in the City’s ten-year capital plan. A capital project will be established upon Council approval to enter into a Front Ending Agreement. The status of these projects will be provided to Council on a yearly basis.