|
2. FRONT-ENDING
AGREEMENT – GREENBANK ROAD RECONSTRUCTION TO AN URBAN
STANDARD FROM CAMBRIAN ROAD TO KILBIRNIE DRIVE ACCORD DE FINANCEMENT INITIAL – RECONSTRUCTION SELON
LA NORME DE VOIRIE URBAINE DU CHEMIN GREENBANK ENTRE LE
CHEMIN CAMBRIAN ET LA PROMENADE KILBIRNIE |
Committee recommendationS
That Council
approve:
1.
Entering
into Front-Ending Agreements with Mattamy (Half Moon Bay) Limited, Mattamy
(Half Moon Bay 4) Limited, Monarch Corporation and Tamarack (Nepean)
Corporation for the design and construction of a roundabout at the intersection
of Greenbank Road and Cambrian Road and for the design and reconstruction of
two lanes of Greenbank Road to an urban standard from Cambrian Road to
Kilbirnie Road, based upon the Front-Ending 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, Infrastructure Services and Community Sustainability and
the City Clerk and Solicitor;
2.
The
expenditure of $650,000 plus applicable taxes in 2011 for the reimbursement to
Mattamy (Half Moon Bay) Limited for the design and construction of a roundabout
at the intersection of Greenbank Road and Cambrian Road subject to the execution
of the Front-Ending Agreement;
3.
In
accordance with Council approval of Front-Ending Agreement Policy, pre‑commit
$5,687,679 plus applicable taxes from the 2015 Capital Budget, subject to the
execution of the Front-Ending Agreements; and
4. Authorize the expenditure of $5,687,678 plus applicable taxes starting in 2015 in accordance with the Reimbursement Schedule set forth in Document 4 for the reimbursement to Mattamy (Half Moon Bay) Limited, Mattamy (Half Moon Bay 4) Limited, Monarch Corporation and Tamarack (Nepean) Corporation for the design and reconstruction of Greenbank Road from Cambrian Road to Kilbirnie Drive subject to the execution of Front-Ending Agreements with each developer.
RecommandationS du comité
Que le Conseil approuve :
1.
l’établissement des
accords de financement initial avec Mattamy (Half Moon
Bay) Limited, Mattamy (Half Moon Bay 4) Limited, Monarch Corporation et
Tamarack (Nepean) Corporation pour la conception et la construction d'un
carrefour giratoire à l'intersection des chemins Greenbank et Cambrian et pour
la conception et la reconstruction, selon la norme de voirie urbaine, de deux
voies du chemin Greenbank entre le chemin Cambrian et la promenade Kilbirnie,
conformément aux principes d'accord de
financement initial énoncés dans le document 2 et à la politique sur les
accords initiaux approuvée par le Conseil et énoncée dans le document 3, la
forme et le contenu finals des accords devant satisfaire la directrice
municipale adjointe, Services d'infrastructure et Viabilité des collectivités,
et le greffier municipal et chef du contentieux;
2.
le versement de 650 000 $, taxes en sus, en 2011 afin de rembourser Mattamy (Half Moon Bay) Limited pour la
conception et la construction d'un carrefour giratoire à l'intersection des
chemins Greenbank et Cambrian, sous réserve de
l'exécution de l'accord de financement initial;
3.
l’engagement préalable d’un montant
de 5 687 679 $, taxes en sus, provenant du Budget
d’immobilisations de 2015, sous réserve de l’exécution des accords de financement
initial; et
4.
la dépense de
5 687 678 $, taxes en sus, à compter de 2015, selon le
calendrier de remboursement établi dans le document 4 visant à rembourser
Mattamy (Half Moon Bay) Limited, Mattamy (Half Moon Bay 4) Limited, la société
Monarch et la société Tamarack (Nepean) pour la conception et la reconstruction
du chemin Greenbank entre le chemin Cambrian et la promenade Kilbirnie sous
réserve de l’exécution des ententes initiales conclues avec chaque promoteur.
Documentation
1.
Deputy
City Manager's report, Infrastructure
Services and Community Sustainability, dated 17 May 2011 (ACS2011-ICS-PGM-0130).
2.
Extract
of Draft Planning Committee Minutes of 24 May 2011.
Report to/Rapport au :
Comité de
and Council / et au Conseil
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 : Derrick Moodie, Acting Manager/gestionnaire
intérimaire, Development Review-Suburban Services/Examen des projets
d'aménagement-Services suburbains, Planning and Growth Management/Urbanisme et
Gestion de la croissance
(613)
580-2424, 15134 Derrick.Moodie@ottawa.ca
REPORT RECOMMENDATIONS
That the Planning Committee recommend
that Council approve:
- Entering
into Front-Ending Agreements with Mattamy (Half Moon Bay) Limited, Mattamy
(Half Moon Bay 4) Limited, Monarch Corporation and Tamarack (Nepean)
Corporation for the design and construction of a roundabout at the
intersection of Greenbank Road and Cambrian Road and for the design and
reconstruction of two lanes of Greenbank Road to an urban standard from
Cambrian Road to Kilbirnie Road, based upon the Front-Ending 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, Infrastructure
Services and Community Sustainability and the City Clerk and Solicitor;
- The
expenditure of $650,000 plus applicable taxes in 2011 for the
reimbursement to Mattamy (Half Moon Bay) Limited for the design and
construction of a roundabout at the intersection of Greenbank Road and
Cambrian Road subject to the execution of the Front-Ending Agreement;
- In
accordance with Council approval of Front-Ending Agreement Policy, pre‑commit
$5,687,679 plus applicable taxes from the 2015 Capital Budget, subject to
the execution of the Front-Ending Agreements; and
- Authorize the expenditure of $5,687,678 plus applicable taxes starting in 2015 in accordance with the Reimbursement Schedule set forth in Document 4 for the reimbursement to Mattamy (Half Moon Bay) Limited, Mattamy (Half Moon Bay 4) Limited, Monarch Corporation and Tamarack (Nepean) Corporation for the design and reconstruction of Greenbank Road from Cambrian Road to Kilbirnie Drive subject to the execution of Front-Ending Agreements with each developer.
RECOMMANDATIONS DU
RAPPORT
Que
le Comité des transports recommande au Conseil d’approuver :
- l’établissement
des accords de financement initial avec Mattamy (Half
Moon Bay) Limited, Mattamy (Half Moon Bay 4) Limited, Monarch Corporation
et Tamarack (Nepean) Corporation pour la conception et la construction
d'un carrefour giratoire à l'intersection des chemins Greenbank et
Cambrian et pour la conception et la reconstruction, selon la norme de
voirie urbaine, de deux voies du chemin Greenbank entre le chemin Cambrian
et la promenade Kilbirnie, conformément aux principes d'accord de financement initial énoncés dans le document 2
et à la politique sur les accords initiaux approuvée par le Conseil et
énoncée dans le document 3, la forme et le contenu finals des accords
devant satisfaire la directrice municipale adjointe, Services
d'infrastructure et Viabilité des collectivités, et le greffier municipal
et chef du contentieux;
- le versement
de 650 000 $, taxes en sus, en 2011
afin de rembourser Mattamy (Half
Moon Bay) Limited pour la conception et la construction d'un carrefour
giratoire à l'intersection des chemins Greenbank et Cambrian, sous réserve de l'exécution de l'accord de
financement initial;
- l’engagement préalable d’un
montant de 5 687 679 $, taxes en sus, provenant du Budget
d’immobilisations de 2015, sous réserve de l’exécution des accords de
financement initial; et
- le versement
de 5 687 679 $ à partir de 2015
conformément aux principes d'accord de
financement initial énoncés dans le document 4.
BACKGROUND
Greenbank Road south of Cambrian Road is currently a two-lane rural cross-section arterial road. It is located in Barrhaven South which is the area located south of the Jock River to the urban boundary between Hwy. 416 and Prince of Wales Drive. Approximately 60 per cent of the developable lands have been built-out from east to west and consist of primarily low density single family residential units. The area will continue to develop as primarily residential with remaining growth areas located west of Jockvale Road. The intersection of Greenbank Road and Cambrian Road is currently controlled by an all-way stop. Plans have been approved to convert this intersection to a roundabout.
Four residential subdivisions located on both sides of Greenbank Road between Cambrian Road to the north and the urban boundary to the south, have been approved starting in 2008 with the registration and commencement of house construction in Mattamy Homes Half Moon Bay Phase 1 Subdivision. This was followed by the registration of Monarch Corporation’s Stonebridge Phases 11 and 12 Subdivision and application and draft plan approval of plans of subdivision by Tamarack Corporation (The Meadows) and Mattamy Homes (Half Moon Bay South). An illustration of the area is provided in Document 1. The total number of residential units to be built within three of these subdivisions not including Mattamy’s Phase 1 Subdivision will be approximately 2300 units. Two major institutional uses are also proposed along this stretch of Greenbank Road, at the south east corner of Greenbank Road and Cambrian Road, which include a city-wide recreation complex with sports fields and a fire station, currently under construction.
As a condition of development of
the subdivision applications for Mattamy Homes, Tamarack Corporation and
Monarch Corporation, they are required to Front-End the design and construction
of the roundabout and reconstruction of the first two-lanes of Greenbank Road
to an arterial urban standard.
DISCUSSION
The proposed roundabout at Greenbank Road and Cambrian Road (Development Charge [DC] Item 1.5089) and the reconstruction of the first two lanes of Greenbank Road to an urban arterial roadway, from Cambrian Road to Kilbirnie Drive (DC Item 1.0924C), were both included in the City’s 2009 Development Charge Background Study. Originally there were to be traffic signals at the intersection of Greenbank Road and Cambrian Road, but in 2008 Mattamy Homes agreed to construct a roundabout in lieu of traffic signals. The capital budget forecast currently identifies a budget to a maximum amount of $650,000 which represents the amount allocated for the traffic signals. This amount will be reimbursed to Mattamy in 2011. The capital budget forecast currently identifies a budget for the road reconstruction project in the 2015 to 2018 timeframe.
Underground services, which are constructed at the sole expense of the developers, are required to be installed now in Greenbank Road to service three of the four developments. As Greenbank Road will be under construction for the installation of the underground services, it is appropriate to coordinate both the road reconstruction, including the installation of streetlights, concrete sidewalk, asphalt multi-use pathway and bike lane, and the underground services, in order to minimize disruption within the community, avoid throwaway works, and minimize costs.
All of the works on Greenbank Road, including the roundabout, which are needed to support the impending development, are proposed for construction in 2011.
Mattamy Homes is required to Front-End the cost of design and construction of the roundabout at the intersection of Greenbank Road and Cambrian Road, and the reconstruction of the first 200 metres of Greenbank Road, south of the roundabout. Together, Mattamy Homes, Tamarack Corporation and Monarch Corporation are required to cost share in the design and reconstruction of two lanes of Greenbank Road to an urban standard, from 200 metres south of Cambrian Road to Kilbirnie Drive. Total capital project costs for both the design and construction of the roundabout and Greenbank Road reconstruction are estimated at $6,337,678. All Front-Ending agreements are subject to the Front-Ending principles noted in Document 2 and the Council approved Front-Ending policy noted in Document 3. Distribution of reimbursement payments to each of the developers will be in accordance with the Reimbursement Schedule in Document 4.
RURAL IMPLICATIONS
N/A
CONSULTATION
Mattamy Homes, Tamarack Corporation and
Monarch Corporation have agreed to Front-End the construction of the roundabout
and reconstruction of Greenbank Road in accordance with the principles set
forth in Document 2 and the Council approved Front-Ending policy noted in
Document 3. Furthermore, the associated
development applications followed the Planning
Act and Council policies for public notification and consultation.
COMMENTS BY THE WARD COUNCILLOR
Councillor Harder concurs with the report.
LEGAL IMPLICATIONS
There are
no Legal/Risk Management impediments to the implementation of this report's
recommendations. Subject to Council approval, the City will
be entering into a standard Front-Ending agreements with each of the developers
to front end the cost of design and construction of the roundabout at the
intersection of Greenbank Road and Cambrian Road and the reconstruction of two
lanes of Greenbank Road to an urban standard from Cambrian Road to Kilbirnie
Drive and will be entitled to reimbursement of costs based on the principles
set out in Document 2 and pursuant to the Council approved front ending policy
as noted in Document 3.
RISK MANAGEMENT IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
In accordance with the Council approved budget estimate, the budgeted amount for the design and construction of a roundabout at the intersection of Greenbank Road and Cambrian Road is $650,000 plus applicable taxes and the budget for the design and reconstruction of two lanes of Greenbank Road to an urban standard from Cambrian Road to Kilbirnie Road is $5,687,679 plus applicable taxes. These amounts include engineering, project management and contingencies. Any contingent costs incurred must be justified and include supporting invoices and payment certificates.
The funds for the design and construction of a roundabout at the intersection of Greenbank Road and Cambrian Road are to be funded from existing capital accounts as follows:
• $100,000 plus applicable taxes from 903253 – Traffic Signals and Intersection Program
• $550,000 plus applicable taxes from 904913– Traffic Signals and Intersection Program 2009
Mattamy (Half Moon Bay) Limited, Mattamy (Half Moon Bay 4) Limited, Monarch Corporation and Tamarack (Nepean) Corporation will be entitled to reimbursement to an upset limit of $650,000 plus applicable taxes in 2011, and $5,687,679 plus applicable taxes beginning in 2015 as outlined in Document 4, subject to satisfactory completion of the works, and in accordance with the Front-Ending Agreement principles and the Council-approved Front-Ending Policy noted in Documents 2 and 3 respectively.
The repayment of front-ended capital projects is based on the schedule of timing identified in the 2009 DC Study, which was a recommendation approved in the DC Policy Framework report.
Should the cost exceed the upset limit, the additional cost shall be borne by the developers and the City shall not be obligated to compensate for additional costs. The following table provides a financial summary of costs for reimbursement.
Figure 1
|
Item |
Development Charge Item |
Up-Set Limit |
Criteria for Repayment |
|
A |
Construction of
Roundabout at Cambrian and Greenbank Roads and Reconstruction to Urban Standard
of 1,4 km of Greenbank Road, 2 lanes, from Cambrian Road (Roundabout) to Kilbirnie
Drive. |
$5,070,143 |
Repayment based on
the actual value to upset limit |
|
B |
15% Engineering |
$760,521 |
Repayment based on
the actual value to upset limit |
|
C |
10% Contingency |
$507,014 |
Upset Limit-All
contingencies must be justified and supported by invoices and payment
certificates |
|
D |
Total Eligible Costs under Front- Ending
Agreement |
$6,337,678 |
Repayment based on actual value to upset
limit (Items A+B+C) |
ENVIRONMENTAL IMPLICATIONS
N/A
TECHNOLOGY IMPLICATIONS
N/A
CITY STRATEGIC PLAN
This Front-Ending Agreement fulfills the following City Strategic Plan objectives:
· Improve the City’s transportation network to afford ease of mobility, keep pace with growth, reduce congestion and work towards modal split targets.
· Ensure that City infrastructure required for new growth is built or improved as needed to serve the growth.
SUPPORTING DOCUMENTATION
Document 1 Map of Greenbank Road Reconstruction
Document 2 Front-Ending Agreement Principles
Document 3 Council Approved Front-Ending Policy
Document 4 Reimbursement Schedule
DISPOSITION
Legal Services will prepare the final form
of the agreements in consultation with the Planning and Growth Management.
1.
Mattamy
(Half Moon Bay) Limited is to post 100% securities for the full costs of the
design and construction of the roundabout at the intersection of Greenbank Road
and Cambrian Road and the reconstruction of the first 200 metres of
Greenbank Road, south of the roundabout
to an urban standard.
2.
Mattamy
(Half Moon Bay 4) Limited, Tamarack Corporation and Monarch Corporation are
required to post 100% securities for the full costs of the design and
construction of the roundabout at the intersection of Greenbank Road and
Cambrian Road and the reconstruction of two lanes of Greenbank Road to an urban
standard from Cambrian Road to Kilbirnie Drive.
3.
The cost of the roundabout and reconstruction of
Greenbank Road, south of Cambrian Road to Kilbirnie Drive is set at an upset limit of $6,337,687 including
engineering and contingencies. Contingent costs incurred shall be justified
and include supporting invoices and payment certificates. Should the cost exceed the upset limit, the
additional cost shall be borne by Mattamy Homes, Tamarack Corporation
and Monarch Corporation and the City
shall not be obligated to compensate Mattamy Homes, Tamarack Corporation
and Monarch Corporation for additional
costs.
4.
The contract for Front-Ended works shall be awarded
by Mattamy Homes, Tamarack
Corporation and Monarch Corporation and
shall be in accordance with the City’s Purchasing Policy of a competitive
procurement process and subject to the satisfaction of the General Manager,
Planning and Growth Management Department.
5.
Construction shall be in accordance with City and
all applicable regulatory standards.
6.
The City will only reimburse Mattamy Homes, Tamarack Corporation and
Monarch Corporation after the works
have been granted approval by the City.
7.
The
reimbursement of the design and construction of the roundabout at the
intersection of Greenbank Road and Cambrian Road and the reconstruction of two
lanes of Greenbank Road to an urban standard from Cambrian Road to Kilbirnie
Drive shall be pursuant to the Council approved Front-Ending Policy as
referenced under Document 3 and in accordance with the reimbursement schedule
outline in Document 4.
8.
Mattamy
Homes, Tamarack Corporation and Monarch Corporation will be entitled to receive
indexing pursuant to conditions noted in Document 3.
9.
Pursuant to item #4, Document 3 of the City’s
Front-Ending Policy regarding the timing for payment to the developers, the
City will have the option to extend the payment an additional one to three
years for each of the years when the repayment portion is schedule.
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. The contract for Front-Ended works shall be awarded by the Front-Ender in accordance with the City’s Purchasing Policy of a competitive procurement process and subject to the review and satisfaction of the General Manager, Planning and Growth Management Department. Where the front-ender does not award the work in accordance with the City’s purchasing policy, they must demonstrate that competitive pricing has been obtained, through independent analysis of their engineer, to the satisfaction of the General Manager, Planning and Growth Management Department. The contract for the work must be made available to the City to provide to the public.
3. 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 storm water ponds. Indexing shall apply to the outstanding balance in accordance with the rate of indexation pursuant to the Development Charge By-Laws.
4. 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 one to three years (one to 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.
5. 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 up to the year the capital project has been budgeted. (City Council approved February 7, 2005.)
6. 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.
7. 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”.
8. 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)
9. In the case where multiple Front-Ending Agreements are in force in the same area-specific development charge By-Law, and the City has approved the Front-Ended works for development charge reimbursements, the Front-Enders will share in the distribution of development charge revenues on a pro-rata basis with other storm water drainage projects. The pro-rated works shall be based on the balance of the outstanding amount owing on the date the repayment is due. Existing Front-Enders will be advised of new Front-Ending Agreements for stormwater works within the same benefiting area and area-specific development charge By-Law.
10. The capital project upset limits for engineering, project management, and contingency shall be the established rates set in accordance with the City’s Development Charge By‑Laws and accompanying background studies, as amended.
11. Land remuneration shall be subject to an appraisal by a professional land appraiser and the appraisal shall be conducted in accordance with the terms of reference as established in the City’s Development Charge By-Laws and accompanying background studies, as amended. The upset limit for land remuneration shall be the lesser of the appraised value and the upset limit in accordance with the City’s Development Charge By-Laws and accompanying background studies.
12. Indexing shall apply to the total project costs if the Front-Ended works have been delayed over a period of time; the Front-Ender provides justification for the delay, and with the written concurrence of the City.
13. Where a Front-Ender is eligible for development charge reimbursement, documentation is required to support the reimbursement in accordance with the City’s Purchasing Policy. The Front-Ending Agreement shall identify at which stage the documentation shall be required. The following documentation shall be forwarded to the City before payment is issued:
·
An invoice summarizing the
Front-Ended works, and separate cost items, if applicable, for land,
construction costs, engineering fees, project management fees, contingency
fees, and applicable taxes.
·
Payment Certificates, including
the final certificate, signed by the developer’s civil engineer.
· All invoices supporting re-payment for the Front-Ended works.
· Statutory Declaration.
· Certificate of Substantial Performance.
· Workplace Safety & Insurance Board Clearance Certificate (WSIB).
· Certificate of Publication.
14. 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.
15. No capital project identified outside of the Council approved ten year long range capital plan, shown in the Development Charge Background Study is eligible to be Front-ended unless another item(s) of comparable value, funding allocation, and timing is delayed. A capital project identified with a post-period deduction applied to the gross cost will only have the development charge portion reimbursed if front-ended over the term of the by‑law. Indexing would not be applicable to the repayment of the post-period component of the project cost. If growth occurs more slowly than forecasted, then the City Treasurer will have the authority to add an additional three years, without interest, to the repayment of the post-period component of the front-ended project from development charges.
