5. LEITRIM - WATERMAIN COSTS – OMB SETTLEMENT

LEITRIM - COÛTS DES CONDUITES D’EAU PRINCIPALES – RÈGLEMENT DE LA CAMO

Committee recommendationS

That Council approve that:

1. The City contribute $1,161,405 plus HST to Tartan for the cost of the watermains within Albion Road from Del Zotto Avenue to Findlay Creek Drive and the watermains within Creekview Way and Manorwood Crescent on the basis outlined in this report; and

2. The balance of the cost of the Albion Road watermain (estimated to be $785,824 plus applicable HST) be recovered and paid out to Tartan, as a condition of subdivision approval based upon the land area to be development within the subdivisions in the area serviced by the watermain as shown on Document 1.

RecommandationS du comité

Que le Conseil approuve:

1. Que la Ville contribue la somme de 1 161 405 $, TVH en sus, à Tartan pour le coût des conduites d'eau principales du chemin Albion entre l'avenue Del Zotto et la promenade de Findlay Creek et des conduites d'eau principales de la voie Creekview et du croissant Manorwood, sur la base exposée dans le présent rapport;

2. Que le reste du coût (estimé à 785 824 $, TVH en sus) des conduites d'eau principales du chemin Albion soit recouvré et versé à Tartan, comme condition d'approbation de lotissement, sur la base de la superficie de terrain devant être aménagée à l'intérieur des lotissements dans le secteur viabilisé grâce aux conduites d'eau principales, comme le montre le document 1.

Documentation

1. City Clerk and Solicitor’s report, Infrastructure Services and Community Sustainability, dated 11 April 2011 (ACS2011-CMR-LEG-0011)

2. Extract of Draft Planning Committee Minutes of 26 April 2011.

Report to/Rapport au :

Planning Committee

Comité de l’urbanisme

and Council / et au Conseil

14 April 2011/le 14 avril 2011

Submitted by/Soumis par : M.Rick O'Connor, City Clerk and Solicitor/

Greffier et Chef du contentieux

Contact Person/Personne ressource : Timothy Marc

Senior Legal Counsel/Conseiller juridique principal

Legal Services/Services juridiques

(613) 580-2424 x21444, timothy.marc@ottawa.ca

Gloucester-South/Sud Nepean (22)

Ref N°: ACS2011-CMR-LEG-0011

SUBJECT:	Leitrim - Watermain costs – omb settlement

OBJET :	Leitrim - COÛTS DES CONDUITES D’EAU PRINCIPALES – RÈGLEMENT DE LA CAMO

REPORT RECOMMENDATIONS

That the Planning Committee recommend to Council that:

1. The City contribute $1,161,405 plus HST to Tartan for the cost of the watemains within Albion Road from Del Zotto Avenue to Finlday Creek Drive and the watermains within Creekview Way and Manorwood Crescent on the basis outlined in this report; and

RECOMMANDATIONS DU RAPPORT

Que le Comité de l'urbanisme recommande au Conseil :

BACKGROUND

As part of the conditions of approval for a Tartan Plan of Subdivision (File D07-16-03-0020) within Leitrim , the City had required the construction of a 610 mm and 406 mm watermain within Albion Road from Del Zotto Avenue to Findlay Creek Drive and then along Findlay Creek to Crestview Drive.

This condition was appealed by Tartan to the Ontario Municipal Board (OMB), alleging that the watermain should be completely covered through development charges. Staff have met with representatives of Tartan to seek a resolution to this dispute.

DISCUSSION

These watermain serve three purposes. The first is to provide security of supply or “looping” as a secondary feed to a portion of the Leitrim area. The second purpose is that the watermain provides added capacity to service Leitrim Finally, these watermains are also form part of the system to provide water supply to the Township of Russell (“Russell”) through the provision of off-peak capacity to supply the Russell’s reservoirs.

Originally, these purposes were to be addressed through the combination of 610 mm and 406 mm watermains within Albion Road and Findlay Creek Drive as noted above. However, due to construction conditions, it was determined that cost savings could be achieved by reducing a substantial portion of the 610 mm watermain to a 406 mm watermain and upsizing some internal pipes in the adjacent Findlay Creek subdivision to 406 mm.

Were the watermain in question not providing water supply for all of Leitrim, the watermain could be sized at 406 mm rather than 610 mm. Therefore, it is in the opinion of operational staff reasonable that Tartan be reimbursed as a development charge item for the difference in cost between a 610 mm pipe and a 406 mm watermain to reflect the broad service area.

With respect to the question of a 406 mm watermain, the position originally advanced by staff was that a watermain of this size provides a local function for the subdivisions serviced by it. As such, it would not be eligible for funding from development charges. However, staff subsequently acknowledged that the watermain in question provides security of supply to more than the Tartan subdivision for which the condition was imposed. In this respect, staff acknowledge that there is an argument that, even as a 406 mm watermain, there may be a benefit beyond the developments in the adjacent Leitrim area as Russell could not be serviced without the installation of the watermains and the existing customers also received increased reliability. Therefore, to move forward, staff agreed to recommend that the cost respecting a 406 mm watermain be divided between the City and the benefitting landowners, including Tartan on a one-third/two-thirds basis. The costs to the landowners would be attributed on an area basis. As this portion of the watermain is being considered a local service, this portion of the costs cannot be funded through development charges but rather would be funded from the water rate.

The division of costs would be in accordance with the following (The Harmonized Sales Tax is in addition to all figures noted):

Albion Road Watermain-Differential Between 610 mm and 406 mm

The difference in cost between a 610 mm watermain and a 406 mm watermain, to be funded from the Water Development Charge, has been calculated to be $423,147.68.

Albion Road Watermain-406 mm Watermain

As described above, it is proposed that the City would pay from the water rate one-third of the cost of a 406 mm watermain, such one-third cost being $392,911.87.

Creekview Way and Manorwood Crescent Watermains

The watermains within Creekview Way and Manorwood Crescent have been increased in diameter from 150 mm and 200 mm to 400 mm in order to accommodate the water supply to Russell. The differential cost of these larger pipes is $345,345.00. In addition to the $282,000 attributable to payments pursuant to the Russell Water System, the balance of $63,345.00 would be funded from the water rate.

Benefitting Area

Attached as Document 1 is a map of the area serviced by the watermain in question. As indicated in Document 1, there are lands serviced by this watermain in addition to those owned by Tartan. Staff agree that it would be appropriate that as a local service for the area within Document 1, all lands within the subject area should contribute to the cost of the watermain. The Development Charges Act and the Planning Act permit the recovery of the cost of what are deemed to be “local services” as a condition of subdivision approval. The lands serviced by the watermain have residential or industrial uses. It is therefore proposed that the remaining cost of the watermain be divided amongst the developments on the basis of land area.

The amount in question would be due upon registration of the plan of subdivision. At the developer’s option, a letter of credit could be submitted at registration with the amount paid at a subsequent date subject to interest at the rate the City of Ottawa would pay upon 10 year debentures.

FINANCIAL IMPLICATIONS

Recommendation 1

Should Council approve this recommendation, total payment due to Tartan from the City would be $1,161,405 plus HST. $282,000 is available within 904810 Letrim South Watermain. The authority in this account will be increased by $899,845 to $1,181,845 based on the table below.

	Albion Rd Watermain Differential (610 mm - 406 mm)	Albion Rd 406 mm Watermain	Creekview Way and Manorwood Cr Watermains	Total
City's Share	423,148	392,912	345,345	$1,161,405
Recovery from Developers	0	785,824	0	$785,824
Total Cost to Tartan	$423,148	$1,178,736	$345,345	$1,947,228

City's Share	423,148	392,912	345,345	$1,161,405
Plus 13% HST	478,157	443,990	390,240	$1,312,387
City's Cost Net of HST	$430,595	$399,827	$351,423	$1,181,845

Funding Source
Revenue - 904810	0	282,000	0	$282,000
Water Rate Funding	0	117,827	351,423	$469,250
Water DC Funding	430,595	0	0	$430,595
Total Funding	$430,595	$399,827	$351,423	$1,181,845

Recommendation 2

Should Council approve this recommendation, the authority in 904810 will be increased by an additional $785,824 plus applicable HST to be funded from subdivision registrations received from the area outlined in Document 1. This amount is to be paid out to Tartan quarterly as funds are recovered from the subdivision.

LEGAL/RISK MANAGEMENT IMPLICATIONS

In the event that the recommendation is not adopted by Council, Tartan has reserved the right to continue with this matter before the Ontario Municipal Board. A hearing has been scheduled for May 24^th to 27^th, 2011.

CONSULTATION

This report is being sent to the other landowners who will be required to contribute to the cost of the watermain.

RURAL IMPLICATIONS

There are no rural implications associated with this report.

STRATEGIC DIRECTIONS

The resolution of this matter is consistent with the Fourth Objective of Planning and Growth Management in Council’s Strategic Objectives: Ensure that the City infrastructure required for new growth is built or improved as needed to serve the growth.

ENVIRONMENTAL IMPLICATIONS

The construction of the watermains has taken place in accordance with the Municipal Class Environmental Assessment.

WARD COUNCILLOR

The Ward Councillor has been advised of this report.

DISPOSITION

Legal Services will requisition a cheque upon adoption of this report by Council.

Planning and Growth Management will seek to ensure that a condition requiring collection of the appropriate amounts in accordance with this report are included as conditions of draft approval.

DOCUMENTATION

Document 1 – Map of benefitting lands

DOCUMENT 1-MAP OF BENEFITTING LANDS

Report to/Rapport au :

SUBJECT:

Leitrim - Watermain costs – omb settlement

OBJET :

Leitrim - COÛTS DES CONDUITES D’EAU PRINCIPALES – RÈGLEMENT DE LA CAMO

REPORT RECOMMENDATIONS

RECOMMANDATIONS DU RAPPORT