4. FRONT – ENDING AGREEMENT – INTERSECTION MODIFICATIONS – STRANDHERD DRIVE AT JOCKVALE ROAD AND CEDARVIEW ROAD AT JOCKVALE ROAD

ENTENTE INITIALE – MODIFICATION DE CARREFOUR – PROMENADE STRANDHERD ET CHEMIN JOCKVALE, ET CHEMIN CEDARVIEW ET CHEMIN JOCKVALE

Committee recommendationS

That Council :

1. Authorize the City to enter into a Front-Ending Agreement with Claridge Homes (Cedarview) Inc. for the design and construction of the intersection of Strandherd Drive at Jockvale Road and a roundabout at Cedarview Road and Jockvale 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; and

2. Approve the expenditure of $1,500,000 plus applicable taxes in 2014 for the reimbursement to Claridge Homes (Cedarview) Inc. in accordance with Document 4, subject to the option for deferral of payment in Document 3, for the design and construction at the intersection at Strandherd Drive and Jockvale Road ($900,000) and a roundabout at Cedarview Road and Jockvale Road ($600,000) subject to the execution of the Front-Ending Agreement.

RecommandationS DU Comité

Que le Conseil :

1. Autorise la Ville à signer une entente initiale avec Claridge Homes (Cedarview) Inc. visant la conception et la construction d’un carrefour à l’angle de la promenade Strandherd et du chemin Jockvale, et d’un carrefour giratoire à l’angle des chemins Cedarview et Jockvale, 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. Approuve l’affectation en 2014 d’une somme de 1 500 000 $, taxes en sus, au remboursement de la société Claridge Homes (Cedarview) Inc., conformément au document 4, sous réserve d’une possibilité de report du paiement prévu au document 3, pour les travaux de conception et construction de l’intersection de la promenade Strandherd et du chemin Jockvale (900 000 $) et d’un carrefour giratoire à l’intersection des chemins Cedarview et Jockvale (600 000 $), sous réserve de la signature de l’entente préalable.

Documentation

Deputy City Manager's report, Infrastructure Services and Community Sustainability, dated 23 December 2011 (ACS2012-ICS-PGM-0001).

Report to/Rapport au :

Planning Committee

Comité de l'urbanisme

and Council / et au Conseil

23 December 2011 / le 23 décembre 2011

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

Barrhaven ( Ward 3)

Ref N°: ACS2012-ICS-PGM-0001

SUBJECT:	Front – Ending Agreement – InTersection Modifications – Strandherd Drive At Jockvale Road and Cedarview Road at Jockvale Road

OBJET :	entente initiale – Modification de carrefour – promenade Strandherd et chemin Jockvale, et chemin Cedarview et chemin Jockvale

REPORT RECOMMENDATIONS

That the Planning Committee recommend Council:

RECOMMANDATIONS DU RAPPORT

Que le Comité de l’urbanisme recommande ce qui suit au Conseil :

1. Autoriser la Ville à signer une entente initiale avec Claridge Homes (Cedarview) Inc. visant la conception et la construction d’un carrefour à l’angle de la promenade Strandherd et du chemin Jockvale, et d’un carrefour giratoire à l’angle des chemins Cedarview et Jockvale, 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. Approuver l’affectation en 2014 d’une somme de 1 500 000 $, taxes en sus, au remboursement de la société Claridge Homes (Cedarview) Inc., conformément au document 4, sous réserve d’une possibilité de report du paiement prévu au document 3, pour les travaux de conception et construction de l’intersection de la promenade Strandherd et du chemin Jockvale (900 000 $) et d’un carrefour giratoire à l’intersection des chemins Cedarview et Jockvale (600 000 $), sous réserve de la signature de l’entente préalable.

BACKGROUND

Claridge Homes (Cedarview) Inc. received draft approval on August 12, 2011 for a plan of subdivision at 2810 Cedarview Road which is located in West Barrhaven between Strandherd Drive and Cedarview Road.

In preparation to proceed with development of this 197 residential unit subdivision, Claridge Homes (Cedarview) Inc. is requesting to enter into a front-ending agreement with the City for the specific works at two intersections. The Strandherd Drive at Jockvale Road intersection is to be constructed with traffic signals. The Cedarview Road and Jockvale Road intersection is to be constructed as a roundabout. Claridge will be proceeding with the development of their subdivision in 2012 which will include extending Jockvale Road between Cedarview Road and Strandherd Drive. The two intersection improvements are to be constructed at this time.

DISCUSSION

The proposed Standherd Drive at Jockvale Road signalized intersection [Area- Specific Development Charge Projects, Services – Roads and Related Services, Item 1.5109] and the proposed roundabout at Cedarview Road at Jockvale Road. [Area- Specific Development Charge Projects, Services – Roads and Related Services, Item 1.8229] are both included in the City of Ottawa 2009 Development Charges Background Study. The capital budget forecast currently identifies budget items to a maximum amount as follows:

1. Strandherd at Jockvale Intersection: Total Costs is $900,000.00 for Traffic Signal and Intersection Program in 2014.

2. Cedarview at Jockvale Roundabout: Total Costs is $600,000.00 for Traffic Signal and Intersection Program in 2013-2014.

Claridge Homes (Cedarview) Inc. is requesting to front-end the cost of the Strandherd Drive at Jockvale Road intersection and the Cedarview Road and Jockvale Road roundabout. The Total Development Charge Project Costs (Growth) for the design and construction at the Strandherd Drive at Jockvale Road Intersection is $900,000 and for the design and construction of the roundabout at the Cedarview and Jockvale Intersection is $600,000.

All Front-Ending agreements are subject to the Front-Ending principles noted in Document 2 and Council approved Front-Ending policy noted in Document 3. Distribution of reimbursement payments to the developer will be in accordance with the Reimbursement Schedule in Document 4.

RURAL IMPLICATIONS

N/A

CONSULTATION

Claridge Homes (Cedarview) Inc. has agreed to Front-End the cost of design and construction of the Strandherd Drive and Jockvale Road intersection and the cost of design and construction of a Cedarview Road and Jockvale Road roundabout in accordance with the principles set forth in Document 2 and the Council approved Front-Ending policy noted in Document 3. Furthermore, the associated subdivision development application followed the Planning Act and Council policies for public notification and consultation.

COMMENTS BY THE WARD COUNCILLOR

Councillor Jan Harder is aware of this report.

LEGAL IMPLICATIONS

There are no Legal impediments to the implementation of this report’s recommendation. Subject to Council approval, the City will be entering into a standard Front‑Ending agreement with the developer to front end the cost of the intersection at Strandherd Drive and Jockvale Road and the roundabout at Cedarview Road and Jockvale Road. The developer 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

There are no risk management implications associated with this report.

FINANCIAL IMPLICATIONS

The estimate for the design and construction of the intersection at Strandherd Drive and Jockvale Road is $900,000 plus applicable taxes and the estimate for design and construction of a roundabout at Jockvale Road and Cedarview Road is $600,000 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 both the Strandherd Drive and Jockvale Road intersection and the Cedarview Road and Jockvale Road roundabout are to be provided 95% from development charges and 5% from non-growth funding sources as outlined in the DC By-Law under the Area Specific Traffic Signals and Intersection Program section.

Claridge Homes (Cedarview) Inc. will be entitled to reimbursement to an upset limit of $1,500,000 plus applicable taxes in 2014 as outlined in Document 4, subject to the satisfactory completion of works as outlined in Documents 2 and 3 respectively.

The 2014 repayment of the front-ended capital projects is based on the timing identified in the 2009 Development Charges (DC) Study, which was a recommendation approved in the DC Policy Framework report. The Planning and Growth Management Department will bring forward the budget requirement as part of the 2014 Capital Budget process, with the 5% non-growth portion being funded from within the department’s 2014 capital tax envelope.

Should the cost exceed the upset limit, the additional cost shall be borne by Claridge Homes (Cedarview) Inc. and the City shall not be obligated to compensate for additional costs. The following table provides a financial summary of cost for reimbursement.

For the Strandherd Drive and Jockvale Road Intersection

	Development Charges Item	Up-Set Limit	Criteria for Repayment
A	Intersection at Strandherd Drive and Jockvale Road	$720,000.00	Repayment based on the actual value to upset limit
B	10% Engineering	$72,000.00	Repayment based on the actual value to upset limit
C	15% Contingency	$108,000.00	Upset Limit – All contingencies must be justified and supported by invoices and payment certificates
D	Total Eligible Costs under Front-Ending Agreement	$900,000.00	Repayment based on the actual value to upset limit (Items A + B + C )

For the Cedarview Road at Jockvale Road Roundabout

	Development Charges Item	Up-Set Limit	Criteria for Repayment
A	Roundabout at Cedarview Road and Jockvale Road	$480,000.00	Repayment based on the actual value to upset limit
B	10% Engineering	$48,000.00	Repayment based on the actual value to upset limit
C	15 % Contingency	$72,000.00	Upset Limit – All contingencies must be justified and supported by invoices and payment certificates
D	Total Eligible Costs under Front-Ending Agreement	$600,000.00	Repayment based on the actual value to upset limit (Items A + B + C )

ACCESSIBILITY IMPACT

N/A

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 Location Map

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 agreement in consultation with Planning and Growth Management.
LOCATION MAP DOCUMENT 1

FRONT-ENDING AGREEMENT PRINCIPLES DOCUMENT 2

1. Claridge Homes (Cedarview) Inc. is to post 100% securities for the full costs of the Strandherd Drive and Jockvale Road intersection and the roundabout at Jockvale Road and Cedarview Road.

2. The cost of intersections of Strandherd Drive and Jockvale Road ($900,000) and the roundabout at Cedarview Road and Jockvale Road ($600,000) together have an upset limit of $1,500,000.00 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 Claridge Homes (Cedarview) Inc. for additional costs.

3. The contract for Front-ended works shall be awarded to Claridge Homes (Cedarview) Inc. 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.

4. Construction shall be in accordance with City and all applicable regulatory standards.

5. The City will only reimburse Claridge Homes (Cedarview) Inc. after the works have been granted approval by the City and are warranted in 2014 or in the year warranted subject to Council approval of the funding.

6. The reimbursement for the design and construction of the two intersections of Jockvale Road at Strandherd Drive and Cedarview Road and Jockvale Road shall be pursuant to the Council approved Front-Ending Policy as referenced under Document 3 when warranted and in accordance with the reimbursement schedule outline in Document 4.

7. Claridge Homes (Cedarview) Inc. will be entitled to receive indexing pursuant to conditions noted in Document 3.

8. Pursuant to item #4, Document 3 of the City’s Front-Ending Policy regarding the timing for payment to the Claridge Homes (Cedarview) Inc. upon the warrants being met, 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 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.

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.

REIMBURSEMENT SCHEDULE DOCUMENT 4

For Strandherd Drive at Jockvale Road Intersection

	Development Charges Item	Up-Set Limit	Criteria for Repayment
A	Intersection at Strandherd Drive and Jockvale Road	$720,000.00	Repayment based on the actual value to upset limit
B	10% Engineering	$72,000.00	Repayment based on the actual value to upset limit
C	15 % Contingency	$108,000.00	Upset Limit – All contingencies must be justified and supported by invoices and payment certificates
D	Total Eligible Costs under Front-Ending Agreement	$900,000.00	Repayment based on the actual value to upset limit (Items A + B + C )

For Cedarview Road at Jockvale Road Roundabout

	Development Charges Item	Up-Set Limit	Criteria for Repayment
A	Roundabout at Cedarview Road and Jockvale Road	$480,000.00	Repayment based on the actual value to upset limit
B	10% Engineering	$48,000.00	Repayment based on the actual value to upset limit
C	15 % Contingency	$72,000.00	Upset Limit – All contingencies must be justified and supported by invoices and payment certificates
D	Total Eligible Costs under Front-Ending Agreement	$600,000.00	Repayment based on the actual value to upset limit (Items A + B + C )