7.             FRONT-ENDING AGREEMENT FOR SPRATT ROAD WATERMAIN

 

ACCORD DE FINANCEMENT PRÉALABLE POUR LA CONDUITE D’EAU PRINCIPALE DE LA RUE SPRATT

 

 

 

Committee RecommendationS

 

That Council:

 

1.      Authorize the City to enter into a Front-Ending Agreement with Riverside South Development Corporation for cost reimbursement for the construction of the Spratt Road watermain from Limebank Road to Future Street No. 8, based upon the principles set forth in Document 2 and the Council approved Front Ending Policy in Document 3, 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; and

 

2.      Authorize the expenditure of $600,000 for the construction of the watermain along Spratt Road subject to the execution of the Front-Ending Agreement.

 

 

RecommandationS du comité

 

Que le Conseil municipal :

 

1.      Autorise la Ville à conclure avec la Société de développement de Riverside South un accord de financement préalable pour le remboursement du coût des travaux de construction de la conduite d’eau principale du chemin Spratt, entre le chemin Limebank et la future rue no 8, conformément aux principes énoncés dans le document 2 ainsi qu’à la politique de financement préalable approuvée par le Conseil dans le document 3, la présentation et le contenu définitifs de l’entente devant être jugés acceptables par le directeur municipal adjoint, Urbanisme, Transport en commun et Environnement, et le chef du contentieux; et

 

2.      Autorise une dépense en immobilisations de 600 000 $ pour la construction de la conduite d’eau principale le long du chemin Spratt, sous réserve de l’exécution de l’accord de financement préalable.

 

 

Documentation

 

1.   Deputy City Manager of Planning, Transit and the Environment’s report dated 28 August 2008 (ACS2008-PTE-PLA-0177).

Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

28 August 2008 / le 28 août 2008

 

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

 

Gloucester-South Nepean (22)

Ref N°: ACS2008-PTE-PLA-0177

 

 

SUBJECT:

FRONT-ENDING AGREEMENT FOR SPRATT ROAD WATERMAIN

 

 

OBJET :

ACCORD DE FINANCEMENT PRÉALABLE POUR LA CONDUITE D’EAU PRINCIPALE DE LA RUE SPRATT

 

 

REPORT RECOMMENDATIONS

 

That the Corporate Services and Economic Development Committee recommend Council:

 

1.                  Authorize the City to enter into a Front-Ending Agreement with Riverside South Development Corporation for cost reimbursement for the construction of the Spratt Road watermain from Limebank Road to Future Street No. 8, based upon the principles set forth in Document 2 and the Council approved Front Ending Policy in Document 3, 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; and

 

2.                  Authorize the expenditure of $600,000 for the construction of the watermain along Spratt Road 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 municipal :

 

1.         Autorise la Ville à conclure avec la Société de développement de Riverside South un accord de financement préalable pour le remboursement du coût des travaux de construction de la conduite d’eau principale du chemin Spratt, entre le chemin Limebank et la future rue no 8, conformément aux principes énoncés dans le document 2 ainsi qu’à la politique de financement préalable approuvée par le Conseil dans le document 3, la présentation et le contenu définitifs de l’entente devant être jugés acceptables par le directeur municipal adjoint, Urbanisme, Transport en commun et Environnement, et le chef du contentieux; et

 

2.         Autorise une dépense en immobilisations de 600 000 $ pour la construction de la conduite d’eau principale le long du chemin Spratt, sous réserve de l’exécution de l’accord de financement préalable.

 

 

BACKGROUND

 

An update to the “Riverside South Community Infrastructure Servicing Study”, in support of the Community Design Plan is currently being finalized in 2008.  The study identifies, among other things, the preferred water servicing strategy for the Riverside South Community.  To support anticipated development in the area, a new feedermain link is required, which had been identified in a previous 2007 report entitled “2W/2C Feedermain Link Class Environmental Assessment Study and Functional Design.”  Both studies were conducted in accordance with the Municipal Class Environmental Assessment Schedule “B” process.

 

 

DISCUSSION

 

A high school is under construction at the northeast corner of Limebank Road and Spratt Road, located within the Riverside South Community.  This area is currently undeveloped and approximately 300 metres of Spratt Road extending easterly from Limebank Road to Future Street No. 8 must be constructed in order to gain access to the high school, which is scheduled to open for the September 2009 school year.  The Spratt Road extension will be constructed pursuant to a registered subdivision agreement with Riverside South Development Corporation (herein after called “RSDC”).  In order to construct this portion of Spratt Road, all required underground municipal services must be placed within the right of way prior to construction of the road to avoid any disruption to school operations in the future.  This road extension runs along the same corridor as the feedermain link noted above and for this portion of the roadway, a 914-millimetre diameter watermain is required.  Document 1 provides an illustration of the local area and delineates Spratt Road as well as the watermain extension.

 

Given that RSDC will be constructing the extension of Spratt Road, RSDC is prepared to front‑end the construction of the watermain.  The feedermain link has been identified as a development charge capital project and RSDC will be paid back in accordance with the principles set out in Document 2 and pursuant to the Council approved Front-Ending Policy noted in Document 3.

 

 

CONSULTATION

 

Public consultations were undertaken in accordance with the Municipal Class Environmental Assessment (EA) process for the 2007 study entitled “2W/2C Feedermain Link Class EA Study and Functional Design” that identified the requirement for the 914 millimetre diameter watermain along the portion of Spratt Road extending easterly from Limebank Road.  The 2008 report entitled “Riverside South Community Infrastructure Servicing Study” also followed the Municipal Class EA process including public consultations.  No other public consultation is required.

 

 

FINANCIAL IMPLICATIONS

 

The 2W/2C feedermain link was identified as a development charge capital project during the City’s 2004 development charge comprehensive review in which Development Charge By-Law 2004-298 is currently in effect.  A budget and funding of $4,278,000 has been established under the capital project account #901145 for this feedermain link.  The cost for the estimated 300‑metre portion of the 914-millimetre diameter watermain along Spratt Road extending east from Limebank Road is set at an upset limit of $600,000 including engineering fees.  Subject to Council approval, RSDC will Front-End the cost to construct the watermain, and will be paid back pursuant to the principles set out in Document 2 and the Council approved Front-Ending Policy noted in Document 3.

 

 

SUPPORTING DOCUMENTATION

 

Document 1      Map of Spratt Road Watermain Extension

Document 2      Front-Ending Agreement Principles

Document 3      Council Approved Front-Ending Policy

 

 

DISPOSITION

 

The final form of the agreement will be prepared by Legal Services in consultation with the Planning, Transit, and the Environment Department.

 

 

MAP OF SPRATT ROAD WATERMAIN EXTENSION                                    DOCUMENT 1

 


FRONT-ENDING AGREEMENT PRINCIPLES                                                 DOCUMENT 2

 

1.                  Riverside South Development Corporation is required to post 100% securities for the full costs of the construction of the 914-millimetre watermain along Spratt Road extending approximately 300 metres east from Limebank Road estimated at $600,000.00, including engineering fees.

 

2.                  The cost of the 914-millimetre watermain along Spratt Road is set at an upset limit of $600,000.00, including engineering fees.  Should the cost exceed the upset limit, the additional cost shall be borne by RSDC, and the City shall not be obligated to compensate RSDC for additional costs.

 

3.                  The repayment of the construction costs for the 914-millimetre watermain along Spratt Road shall be pursuant to the Council approved Front-Ending Policy as referenced under Document 3.

 

4.                  RSDC will be entitled to receive indexing pursuant to conditions noted in Document 3.

 

 

 

COUNCIL APPROVED FRONT-ENDING POLICY                                           DOCUMENT 3

 

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:

 

  1. All front-ending agreements with the City will be for growth-related capital works that have been included in a development charge study.

 

  1. 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. 

 

  1. 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.

 

  1. 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.)

 

  1. 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.

 

  1. 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”.)

 

  1. 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.)

 

  1. 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.