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4. RESIDENTS’ PETITION FOR THE INSTALLATION OF
SANITARY SEWER INFRASTRUCTURE AS A LOCAL IMPROVEMENT IN RIDEAU GLEN pétition pour l’installation d’une infrastructure de
réseau séparatif à titre d’amélioration locale dans rideau-glen |
Committee recommendation
That
Council approve a by-law to undertake the construction of sanitary sewer
infrastructure within the Rideau Glen area as petitioned Local Improvement
works and in accordance with the cost apportionment as outlined in this report.
Recommandation DU Comité
Que le Conseil approuve un règlement en vue d’entreprendre la
construction d’une infrastructure de réseau séparatif dans le secteur de
Rideau-Glen à titre de travaux d’amélioration locale requis et conformément à
la répartition des coûts, tel qu’il est indiqué dans le présent rapport.
Documentation
1.
Deputy
City Manager’s report, Infrastructure Services and Community Sustainability
dated 23 March 2009 (ACS2009-ICS-INF-0002).
2. Extract
of Draft Minute, 14 April 2009.
Report to/Rapport au :
Planning
and Environment Committee
Comité de l'urbanisme et de l'environnement
23 March 2009 / le 23 mars 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 : Wayne Newell, Director/Directeur
Infrastructure
Services/Services d’infrastructure
(613)
580-2424 x16002, Wayne.Newell@ottawa.ca
REPORT
RECOMMENDATION
That the Planning and Environment Committee recommend Council approve a by-law to undertake the construction of sanitary sewer infrastructure within the Rideau Glen area as petitioned Local Improvement works and in accordance with the cost apportionment as outlined in this report.
RECOMMANDATION DU RAPPORT
Que le Comité de
l’urbanisme et de l’environnement recommande au Conseil d’approuver un
règlement en vue d’entreprendre la construction d’une infrastructure de réseau
séparatif dans le secteur de Rideau-Glen à titre de travaux d’amélioration
locale requis et conformément à la répartition des coûts, tel qu’il est indiqué
dans le présent rapport.
BACKGROUND
In the recent past, the Rideau Glen community has undertaken Local Improvement petitions for the provision of both municipal water and wastewater services. Ultimately the community did not indicate sufficient support in the petitions for concurrent municipal servicing to proceed.
In February 2008, staff received an inquiry to service private properties in the Rideau Glen area with sanitary sewers only. To gauge public support for sanitary sewer services only, a survey-of-interest was circulated in the Rideau Glen community in the spring of 2008. Based on the results of the survey, the limits of the Rideau Glen Local Improvement area were established. The area is made up of Rideau Glen Drive, Holborn Avenue, Prince of Wales Drive and Merivale Road, as shown on Attachment No. 1. There are thirty-nine (39) private properties within these limits that are currently serviced with private wells and septic systems. An engineering study previously undertaken determined the feasibility to service the Rideau Glen area with sanitary sewers by gravity, with a few properties requiring on-site pumping to connect to the sewer.
In accordance with the Local Improvement Policy, approved by Council in May 2006, and Ontario Regulation 586/06, servicing of these properties could be considered if:
- the benefiting properties are located within the Public Service Area as identified on the Official Plan;
- the existing public system is able to accommodate the capacity requirements to service the new area; and
- the property owners sign a petition with at least 67% of the total number of properties in support of proceeding with the servicing representing an ownership of at least 50% of the total assessed value of the properties.
A Local Improvement petition for installation of a sanitary sewer was circulated to the affected property owners. The petition was returned to City staff on 21 July 2008. The petition documents were certified, by the City Clerk on 15 December 2008 as having been sufficiently signed as prescribed by Ontario Regulation 586/06.
The purpose of this report is to seek approval from Council to establish a Local Improvement By-law for the extension of municipal sanitary sewers to benefiting properties in the Rideau Glen community.
Next Steps
Subject to Committee and Council approval, the project will proceed to final design and construction. Design is scheduled to be undertaken in 2009 with construction in 2010.
Preparation of the special assessment roll, the Committee of Revision process and the levy of the final charges are expected to occur approximately 6 months after the end of construction.
DISCUSSION
Servicing
Options
The benefiting properties can be serviced by municipal wastewater by installing local sanitary sewers on Rideau Glen Drive, Holborn Avenue, Prince of Wales Drive and Merivale Road with a connection to the West Rideau Collector sewer, as shown on Attachment No. 1.
Cost
Apportionment between City and Private Property Owners
For Local Improvement projects, the City initially pays all the project costs upfront and then recovers the non-City share from benefiting private property owners. Each benefiting property is levied their share through a charge on the property tax bill known as a Local Improvement charge. The charge to an individual property includes their share of the sanitary sewer cost plus cost of the service laterals constructed within the road allowance up to the property line.
The work located within the road allowance consists of the installation of approximately 970 metres of sanitary sewer and related road reinstatement. The total estimated cost for the project is $1,125,000, including design and engineering, project management and on-site construction inspection.
The City's share of the project is estimated at $185,000. This amount is based on cost certainty provisions at the time of petitioning and cost reduction for property owners that are delivered a reduced level of service relative to others. The non-City share, to be recovered from the benefiting property owners, is estimated at $940,000. The non-City share of the sanitary sewer cost is to be apportioned between the benefiting private property owners on the basis of adjusted property frontage. However, in situations where property dimensions may not be an adequate reflection of the relative benefit, the Local Improvement Policy and supporting legislation allows for adjustments to frontage based on the relative assessed value and surface area of the benefiting properties. Since most of the benefiting properties are of irregular shape, the cost for the individual properties will be assessed on the basis of an adjusted frontage. As part of the petition process, individual property owners were provided with cost information specific to their property. In general, the cost per property for sanitary sewer servicing up to the property line, is in the range of $11,600 to $34,000.
For Local Improvements, property owners require certainty with respect to their financial commitment to formulate a decision to support the petitioned work or not. The Local Improvement Policy identifies that for any given local improvement project, the charge rate(s) to the benefiting property owners will not exceed the pre-construction estimated rate(s) approved by Council. This allows the owners' share of the cost of a Local Improvement project to be a capped amount based on the best estimates at the time of the petition for the works. Should final construction costs exceed the capped limits set out in the petition, the City's share will increase.
The cost estimates provided to the benefiting property owners reflect the most current estimates by City staff. Prior to assessing the final charges, the benefiting property owners will have an opportunity to express their concerns at a Committee of Revision. All affected property owners will be notified in advance of the date, time and location of the Committee of Revision, as well as the amount of the Local Improvement charge per the requirements of Local Improvement legislation. If no concerns are expressed prior to the Committee of Revision meeting date, then there will be no need for a meeting and the charges will be finalized.
Additional
Costs for Works on Private Property
The Local Improvement charge is only applicable for works located within publicly owned property, such as road allowances. The City does not undertake work on private property to complete the connection from the service lateral located at the property line to the house. The cost and coordination of the work to install service laterals on private property is the responsibility of the property owner. An information sheet detailing various costs associated with the private property work was provided in the property owner packages distributed in advance of circulating the Local Improvement petition (Attachment 2)
CONSULTATION
In 2007, the City received a Local Improvement request from the Rideau Glen community for provision of both municipal water and wastewater services. As part of this petition process property owners were provided with individual Local Improvement property owner packages with estimated costs for both services. The water and wastewater service Local Improvement petitions ultimately were not sufficient, however, the circulation of these petitions provided an introduction to the Rideau Glen community of the Local Improvement process.
For the current request, City staff hosted an open house on 12 June 2008 to discuss the Local Improvement process for the sanitary sewer installation, the implication to property owners and the petition requirements.
Background information with respect to the sanitary sewer works to be constructed, the estimated costs and the resulting charges was provided to the lead petitioner circulating the petition. Individual property owner packages, with estimated costs specific to each property, were also distributed to each property owner in advance of circulating the Local Improvement petition in June 2008.
A Committee of Revision will be held following construction with notice of the proposed cost assessment provided to each of the benefiting owners before finalizing the Local Improvement charge for the project.
The Ward Councillor has been consulted and is in support of this project.
LEGAL/RISK MANAGEMENT IMPLICATIONS
The authority for municipalities to undertake works as local improvements is provided through Municipal Act 2001 as prescribed under Ontario Regulation 586/06. The Rideau Glen Local Improvement works have come forward as a petitioned request that has followed all necessary regulation processes and the petition has been certified as sufficiently signed under the provision of the regulation. Committee and Council passage of a by-law to undertake the works as a local improvement is the legal requirement to establish the authority to proceed with the work as a local improvement with the intent to impose the charge against benefiting property owners once the work is complete.
FINANCIAL IMPLICATIONS
Capital Costs
The total estimated cost of the Local Improvement project is $1,125,000. The City's share of the project is $185,000 and the non-City share, to be recovered from the benefiting property owners, is $940,000.
Funding was approved as part of the 2009 Capital Budget, under account number 904886.
All charges are set by by-law and levied on the tax bill. The City allows the full charge for the property to be paid without carrying charges in a lump sum amount before the charge against the property comes into effect. Otherwise the property owner will pay the charge with carrying charges in equal annual instalments through the tax bill over a period of 20 years. To the extent that owners may choose to amortize the charges over a 20-year period, debenture authority in the estimated maximum amount of $940,000, plus carrying charges, for this project will be established.
The preliminary Federal Infrastructure Stimulus Fund list does not include this project, since it is currently funded in the 2009 Capital Budget.
As approved by Council on 23 April 2008 for Local Improvement projects, City staff propose to submit a request for funding assistance under the Building Canada Fund, subject to the details of the program being released, to offset both the resident's and City's share of the project costs.
Operating
Budget Implications
The Operating Budget impact for the new sewer works is estimated at $6,000 annually.
When the new system is commissioned, and as individual property connections are confirmed through the permitting process, sewer surcharge levies will be applied to customers as part of the City's standard billing practices to provide for the ongoing operation, maintenance, repair and replacement of the sewer infrastructure.
SUPPORTING DOCUMENTATION
Attachment 1 - Rideau Glen Local Improvement Area Plan
Attachment 2 - Typical Private Property Costs
DISPOSITION
Legal Services will finalize the by-law for undertaking the works as a Local Improvement.
The by-law will be circulated to Financial Services, Revenue Division for tax certificate and collection purposes.
Infrastructure Services will administer, tender, construct, commission, as well as prepare the post construction Local Improvement documentation necessary to prepare final statement of costs, preliminary special assessment rolls and briefing summaries to the Local Improvement Committee of Revision.
Attachment 1
Rideau Glen Local Improvement Area Plan
