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8. FRONT-ENDING AGREEMENT FOR SHIRLEY'S BROOK STORMWATER MANAGEMENT
FACILITY #1 WEST entente initiale pour l’installation de gestion
des eaux pluviales no 1 ouest du ruisseau shirleys |
Committee RecommendationS AS AMENDED
That Council :
1.
Authorize the City
to enter into a front-ending agreement with Riotrin Properties (March Road)
Inc. for the construction of the Shirley’s Brook Storm Water Management
Facility #1 West based upon the principles set forth in Document 2, and the
Council approved Front-Ending Policy noted in Document 3 with the final form
and content of the front-ending agreement being to the satisfaction of the
Deputy City Manager, Infrastructure Services and Community Sustainability
Department and the City Solicitor as amended by the following;
a)
That repayment
under the front-ending agreement for the Stormwater Management Facility #1 West
be varied so that Riotrin Properties receive 100% of the funds paid on their
property, subject to confirmation being received from the beneficiaries of the
two Shirley’s Brook Ponds East by the time this report rises to Council;
2. Authorize the expenditure of $950,600 for the construction of the
Shirley’s Brook SWMF #1 West subject to the execution of the front-ending
agreement; and
3.
Authorize the City to
establish a budget in the amount of $950,600 for the Shirley’s Brook Storm
Water Facility #1 west, under Internal Order number: 903328: Area W-2
Shirley’s Brook W SWM Pond 1.
Que le Conseil :
1.
autorise la Ville à signer une
entente initiale avec Riotrin Properties (March Road) Inc. en vue de la
construction de l’installation de gestion des eaux pluviales no 1
Ouest du ruisseau Shirleys fondée sur les principes exposés dans le Document 2
et la politique initiale approuvée par le Conseil et indiquée dans le Document
3, le format et le contenu de l’entente initiale étant à la satisfaction de la
directrice municipale adjointe, Services d’infrastructure et Viabilité des
collectivités, et du chef du contentieux telle que modifiée par ce qui suit;
a.
que le remboursement en vertu de
l’accord de financement préalable de l’installation de gestion des eaux
pluviales no 1 Ouest soit modifié afin que Riotrin Properties
reçoivent 100 % des fonds payés sur leur propriété, sous réserve d’une
confirmation reçue des bénéficiaires des deux étangs Est du ruisseau Shirleys
avant que le présent rapport ne soit présenté au Conseil;
2.
autorise la dépense de 950 600 $
pour la construction de l’installation de gestion des eaux pluviales no
1 Ouest du ruisseau Shirleys sous réserve de la signature de l’entente
initiale; et
3. autorise la Ville à établir un
budget d’un montant de 950 600 $ pour l’installation de gestion des eaux
pluviales no 1 Ouest du ruisseau Shirleys sous le numéro
d’ordre interne : 903328 : Area W-2 Shirley’s Brook W SWM Pond
1.
DOCUMENTATION
1. Deputy City Manager of Infrastructure
Services and Community Sustainability report dated 9 January 2009 (ACS2008-ICS-PLA-0006).
2. Extract of Draft Minutes
Report to/Rapport au :
Corporate Services and
Economic Development Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
09 January 2009 / le 09 janvier 2009
Submitted by/Soumis par : Nancy Schepers,
Deputy City Manager/Directrice municipale adjointe,
Infrastructure Services and
Community Sustainability/Services d’infrastructure et Viabilité des
collectivités
Contact Person/Personne ressource : Michael Wildman, Acting
Manager/Gestionnaire intérimaire, Infrastructure Approvals/Approbation des
demandes d’infrastructure
Planning
and Growth Management/Urbanisme et Gestion de la croissance
(613)
580-2424 x 27811,
Mike.Wildman@ottawa.ca
SUBJECT:
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FRONT-ENDING AGREEMENT FOR SHIRLEY'S
BROOK STORMWATER MANAGEMENT FACILITY #1 WEST |
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OBJET :
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entente initiale pour l’installation de gestion des eaux pluviales no 1 ouest du ruisseau
shirleys |
REPORT RECOMMENDATIONS
That the Corporate Services and Economic Development Committee
recommend Council:
1. Authorize
the City to enter into a front-ending agreement with Riotrin Properties (March
Road) Inc. for the construction of the Shirley’s Brook Storm Water Management
Facility #1 West based upon the principles set forth in Document 2, and the
Council approved Front-Ending Policy noted in Document 3 with the final form
and content of the front-ending agreement being to the satisfaction of the
Deputy City Manager, Infrastructure Services and Community Sustainability
Department and the City Solicitor;
2. Authorize
the expenditure of $950,600 for the construction of the Shirley’s Brook SWMF #1
West subject to the execution of the front-ending agreement; and
3. Authorize the City to establish a budget in the amount of $950,600 for the Shirley’s Brook Storm Water Facility #1 west, under Internal Order number: 903328: Area W-2 Shirley’s Brook W SWM Pond 1.
RECOMMANDATIONS
DU RAPPORT
Que le Comité des
services organisationnels et du développement économique recommande au
Conseil :
1.
d’autoriser la Ville à signer une
entente initiale avec Riotrin Properties (March Road) Inc. en vue de la
construction de l’installation de gestion des eaux pluviales no 1
Ouest du ruisseau Shirleys fondée sur les principes exposés dans le Document 2
et la politique initiale approuvée par le Conseil et indiquée dans le Document
3, le format et le contenu de l’entente initiale étant à la satisfaction de la
directrice municipale adjointe, Services d’infrastructure et Viabilité des
collectivités, et du chef du contentieux;
2.
d’autoriser la dépense de 950 600 $
pour la construction de l’installation de gestion des eaux pluviales no
1 Ouest du ruisseau Shirleys sous réserve de la signature de l’entente
initiale; et
3.
d’autoriser la Ville à établir un
budget d’un montant de 950 600 $ pour l’installation de gestion des eaux
pluviales no 1 Ouest du ruisseau Shirleys sous le numéro d’ordre
interne : 903328 : Area W-2 Shirley’s Brook W SWM Pond 1.
BACKGROUND
The recommendations
of the 1999 Shirley’s Brook Subwatershed Study and the 2001 Kanata North Environmental Management Plan
identified the construction of a storm water management pond located on the
west side of Shirley’s Brook at the confluence of the northwest and southwest
branches that will provide storm water management for March Road and adjacent development
lands. Document 1 illustrates the
location of the pond. The pond will
service a tributary drainage area of approximately 20 hectares, comprised
primarily of low and medium density residential dwellings and commercial
development. The drainage area to this
facility includes the lands originally considered in the Kanata North
Environmental Management Plan (March Road and lands to the east), as well as a
portion of the Minto lands in the Morgan’s Grant subdivision on the west side
of March Road.
The October 2008 “Shirley’s Brook SWM Facility 1 – West Functional Design Report” determined that the preferred location of the pond will be located on City-owned property in proximity to the relocated March House. The March House Property is a developable parcel currently owned by the City, and is located on the northeast corner of March Road and Klondike Road. This property contains the March House building, a designated heritage property by City Council in August 2004, which was relocated in 2007 to accommodate the proposed widening of March Road. In August 2008, City Council approved the sale of this property (ACS2008-BTS-RPM-0024) to Riotrin Properties (March Road) Inc. (herein after called “Riotrin”).
DISCUSSION
Under the terms of the purchase and sale agreement approved by Council, Riotrin is to front-end all costs associated with constructing Shirley’s Brook Pond #1 West in accordance with City standards and the approved Functional Design Report noted above. In addition, Riotrin will not be compensated for the value of the land where the pond will be located pursuant to the existing purchase and sale agreement between the City and Riotrin. In accordance with the purchase and sale agreement, the portion of the March House property that is to be used for pond construction will be transferred to Riotrin at no cost. Since the pond construction lands will be transferred to Riotrin at no cost, Riotrin will not be eligible to claim a development charge credit on these same lands. On completion of the pond, Riotrin is to transfer the lands back to the City at no charge.
Subject to Council approval,
Riotrin is prepared to front end the total cost to construct the pond and would
be paid back based on the principles set out in Document 2 and pursuant to the
Council approved front ending policy as noted in Document 3. The $950,600 to construct the pond is the
upset limit, which includes engineering and contingency. Additional costs exceeding the upset limit
will be borne by Riotrin and the City will not be obligated to compensate Riotrin
for the additional costs.
CONSULTATION
Public consultations were undertaken in accordance with the Municipal Class Environmental Assessment process for the 2001 Kanata North Environmental Management Plan, which identified the requirement for a pond as noted above. In accordance with City policy, a public meeting will be held at the Corporate Services and Economic Development Committee meeting on January 20, 2009 and notice of this meeting was advertised in the Citizen and Le Droit on December 19, 2008.
At this point, Riotrin has not completely concurred in the approach recommended in this report. Riotrin’s representatives have stated that it is their preference that all of the stormwater development charges from their project (estimated to be approximately $295,000) be applied solely to the pond to be constructed by them rather than being shared amongst all benefiting ponds in this area (with the result that one-third of the $295,000 would be allocated to repayment of Trinity for their pond).
As provided in principle 9 of the front-ending principles approved by Council and applied by staff, all revenues from a benefiting area are to be shared equally amongst the projects in the benefiting area.
LEGAL/RISK MANAGEMENT IMPLICATIONS:
The Agreement of Purchase and Sale signed by Riotrin
and the City provides that Council approval for a Front Ending Agreement for
the storm water management pond is to be obtained prior to the completion of
the sale of the subject lands (including the March House) by the City to
Riotrin. The Front Ending Agreement and
the sale must be completed no later than February 27, 2009.
FINANCIAL IMPLICATIONS
Shirley’s Brook SWMF #1 West was identified as a capital project in the 2004 “City of Ottawa Area Specific Development Charge Background Study for Shirley’s Brook (Area W-2) Individual Storm Water Management Ponds and Drainage Systems.” Document 1 illustrates the storm water collection area for the Shirley’s Brook Stormwater Facilities. As development occurs in this area, development charges are collected to fund storm related infrastructure.
The estimated cost for the construction of Shirley’s Brook Pond #1 West is $950,600 and is consistent with the capital cost established in the May 2006 amendment to the area specific DC By-Law for the Shirley’s Brook Storm Water Management Facilities, By-Law 2006-204 as enacted. Pursuant to the background study, a portion of the works for Pond #1 West was identified as stormwater management required for March Road to compensate for the road drainage, which will be draining to the pond. The City is currently undertaking the construction to widen March Road and accordingly, 35 per cent of the cost, or $332,700 will be funded by the citywide Development Charge Reserve account with the budget allocated to March Road capital account #903182 in the City’s 2008 approved budget. Shirley’s Brook SWMF DC By‑law 2006‑204 will provide the balance of the funding.
Subject to Council approval, a new internal order must be established to fund this capital project for development charges that will be collected through registered subdivision agreements and to reimburse Riotrin on a quarterly basis. Annual operating costs for the pond are estimated at $5,000 beginning in 2009.
Should other development charge storm related works be constructed during the life of this Front Ending Agreement as identified in the area specific Development Charge By-law 2006-204 for Shirley’s Brook Storm Water Facilities, within the storm water collection area identified in Document 1, the Front Enders will share equally with other storm water drainage projects in the distribution of development charge revenues collected.
SUPPORTING DOCUMENTATION
Document 1 Shirley’s Brook SWMF #1 West and Stormwater Development Charge
Area W-2
Document 2 Front-Ending Agreement Principles
Document 3 Council Approved Front Ending Policy
DISPOSITION
The final form of the Front-Ending Agreement will be prepared by Legal Services in consultation with the Infrastructure Services and Community Sustainability Department.
SHIRLEY’S
BROOK SWMF #1 WEST AND STORMWATER DOCUMENT
1
DEVELOPMENT CHARGE AREA
DOCUMENT 2
FRONT-ENDING AGREEMENT PRINCIPLES
1. Riotrin will be required to post a letter of credit or cash deposit equal to the cost of constructing the SWMF #1 West totalling $950,600.
- Contract for works will be awarded by Riotrin subject to prior review by the City.
- Construction will be completed to City and other regulatory standards.
- Cost of all works will be borne initially by Riotrin.
- The cost to construct the Shirley’s Brook SWMF #1 West is set at an upset limit of $950,600 including engineering and contingencies. Should the cost exceed the upset limit, the additional cost will be borne by Riotrin, and the City will not be obligated to compensate Riotrin for additional costs.
- The City will assume operation of the SWMF #1 West when the facility meets City standards as well as the requirements of all approval agencies.
- Riotrin will be reimbursed quarterly from storm water development charges collected within the benefiting area. For March Road drainage, the $332,700 or 35% portion of the costs shall be funded by the March Road capital account #903182. A lump sum reimbursement of $332,700 will be made to Riotrin in 2009, the year in which the March Road widening budget will be available, and following satisfactory completion of the pond.
- Riotrin will be entitled to receive indexing pursuant to conditions noted in Document 3.
- Should other Development Charge storm related works be constructed during the life of this Front Ending agreement as identified in By-Law 2006-204, within the storm water collection area identified in Document 3, Riotrin will share equally with other storm water drainage projects in the distribution of Development Charge revenue collected.
DOCUMENT 3
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:
1. All front-ending agreements with the City will be for growth-related capital works that have been included in a development charge study.
2. Storm water 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 storm water ponds.
3. 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.
4. 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)
5. 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.
6. All development charges payable by developers must be paid up front in accordance with the City’s by-law. With the exception of the storm water 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”.
7. 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)
8. 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.