8. FRONT – ENDING AGREEMENTS – TRAFFIC SIGNALS FOR BANK STREET AT

ANALDEA DRIVE, NORTH INTERSECTION

ENTENTES DE FINANCEMENT PRÉALABLE – FEUX DE CIRCULATION SUR

LA RUE BANK À LA HAUTEUR DE LA PROMENADE ANALDEA, INTERSECTION NORD

Committee recommendationS

That Council:

1. Authorize the City to enter into a Front-Ending Agreement with Claridge Homes (Leitrim) Inc. for the installation of traffic signals at the Bank Street and Analdea Drive north intersection as 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, Planning and Infrastructure and the City Clerk and Solicitor; and

2. Approve the expenditure of $175,000 plus applicable taxes in 2018 to reimburse Claridge Homes (Leitrim) Inc. in accordance with Document 4, subject to the option for deferral of payment detailed in Document 3, for traffic signals at the Bank Street and Analdea Drive north intersection, subject to the execution of the Front-Ending Agreement.

RecommandationS DU Comité

Que le Conseil :

1. autorise la Ville à conclure une entente de financement préalable avec la société Claridge Homes (Leitrim) Inc. en vue de l’installation de feux de circulation sur la rue Bank à l’intersection nord de la promenade Analdea, comme le prévoient le document 2 et la politique sur les ententes de financement préalable approuvée par le Conseil et énoncée dans le document 3, le format et le contenu de l’entente étant à la satisfaction de la directrice municipale adjointe, Urbanisme et Infrastructure, et du greffier municipal et chef du contentieux;

2. approuve l’affectation en 2018, d’une somme de 175 000 $, taxes en sus, au remboursement de la société Claridge Homes (Leitrim) Inc. conformément au document 4, sous réserve du possible report du paiement prévu au document 3, pour les feux de circulation à l’intersection de la rue Bank et de la promenade Analdea (intersection nord), et sous réserve également de la signature de l’entente de financement préalable.

Documentation

1. Deputy City Manager's report, Planning and Infrastructure, dated 12 March 2012 (ACS2012-PAI-PGM-0080).

Report to/Rapport au :

Planning Committee

Comité de l'urbanisme

and Council / et au Conseil

12 March 2012 / le 12 mars 2012

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice municipale adjointe, Planning and Infrastructure/Urbanisme et Infrastructure

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

Gloucester- South Nepean (22)

Ref N°: ACS2012-PAI-PGM-0080

SUBJECT:

Front – Ending Agreements – TRAFFIC SIGNALS for Bank Street At Analdea Drive, North Intersection

OBJET :

ENTENTES DE FINANCEMENT PRÉALABLE – FEUX DE CIRCULATION sur LA RUE BANK À LA HAUTEUR DE LA PROMENADE ANALDEA, INTERSECTION NORD

REPORT RECOMMENDATIONS

That the Planning Committee recommend Council:

RECOMMANDATIONS DU RAPPORT

Que le Comité de l’urbanisme recommande au Conseil :

1. D’autoriser la Ville à conclure une entente de financement préalable avec la société Claridge Homes (Leitrim) Inc. en vue de l’installation de feux de circulation sur la rue Bank à l’intersection nord de la promenade Analdea, comme le prévoient le document 2 et la politique sur les ententes de financement préalable approuvée par le Conseil et énoncée dans le document 3, le format et le contenu de l’entente étant à la satisfaction de la directrice municipale adjointe, Urbanisme et Infrastructure, et du greffier municipal et chef du contentieux;

2. D’approuver l’affectation en 2018, d’une somme de 175 000 $, taxes en sus, au remboursement de la société Claridge Homes (Leitrim) Inc. conformément au document 4, sous réserve du possible report du paiement prévu au document 3, pour les feux de circulation à l’intersection de la rue Bank et de la promenade Analdea (intersection nord), et sous réserve également de la signature de l’entente de financement préalable.

BACKGROUND

Claridge Homes (Leitrim) Inc. received draft approval on October 15, 2009 for a plan of subdivision at 4635, 4703 and 4723 Bank Street which is located in Leitrim on the east side of Bank Street, south of Leitrim Road and north of Findlay Creek Drive.

In preparation to proceed with development of this 290 residential unit subdivision, Claridge Homes (Leitrim) Inc. is requesting to enter into a front-ending agreement with the City for traffic signals at Bank Street and Analdea Drive, north intersection (see Document 1). Claridge has early servicing to allow construction of services and will be proceeding to register their first phase of development in 2012.

DISCUSSION

The proposed north intersection traffic signals for Bank Street at Analdea Drive - North [Area- Specific Development Charge Projects, Services – Roads and Related Services, Item 1.5129] is 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. Bank Street at Analdea Drive North: Total Costs is $175,000 for Traffic Signal and Intersection Program in 2018.

Claridge Homes (Leitrim) Inc. is requesting to front-end the cost of traffic signals for Bank Street at Analdea Drive, north intersection. The Total Development Charge Project Costs (Growth) for the traffic signals for Bank Street at Analdea Drive, north intersection is $175,000.

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

There are no rural implications associated with this report.

CONSULTATION

Claridge Homes (Leitrim) Inc. has agreed to Front-End the cost of the traffic signals for Bank Street at Analdea Drive, north intersection 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 Steve Desroches 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 traffic signals at the north intersection of Analdea Drive and Bank Street. 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

Reimbursement for the installation of traffic signals for Bank Street at Analdea Drive, north intersection is outlined in the table below, and subject to the satisfactory completion of works as outlined in Documents 2 and 3. The upset limits, and 2018 timing, are based on the 2009 Development Charge Study.

Funding will be provided 95% from development charges and 5% from non-growth funding source. Planning and Growth Management will bring forward the budget requirement as part of the 2018 capital budget process, with the 5% non-growth portion being funded from within the department’s capital tax envelope.

Claridge Homes (Leitrim) Inc. will be required to enter into an agreement with the City to pay for annual maintenance and operating costs of the Traffic Control Signal (TCS) until a study, conducted by the City confirms that this location meets the warrants for signalization. If the TCS is found to be warranted, the City will assume the maintenance and operating costs of the TCS beginning January 1 of the following year. Once the TCS is operational, the Owner may request the City to undertake a traffic count to determine if the intersection meets the warrants for signalization. The Owner is responsible for reimbursing the City for all costs associated with this traffic count and subsequent analysis. If the location is found to meet the warrants for signalization this cost will be waived. The estimated annual maintenance and operations cost of the traffic control signal is $10,000 (2012 dollars).

	Development Charges Item	Up-Set Limit	Criteria for Repayment
A	Traffic Signals – Bank Street at Analdea Drive, north intersection	$140,000	Repayment based on the actual value to upset limit
B	10% Engineering	$14,000	Repayment based on the actual value to upset limit (10% of Item A)
C	15% Contingency	$21,000	Upset Limit – All contingencies must be justified and supported by invoices and payment certificates (15% of Item A)
D	Total Eligible Costs under Front-Ending Agreement	$175,000	Repayment based on the actual value to upset limit. Should the cost exceed the upset limit, the additional cost shall be borne by Claridge Homes (Leitrim) Inc. and the City shall not be obligated to compensate for additional costs (Items A + B + C )

ACCESSIBILITY IMPACT

There is no accessibility implications associated with this report.

ENVIRONMENTAL IMPLICATIONS

There are no environment implications associated with this report.

TECHNOLOGY IMPLICATIONS

There are no direct technical implications associated with this report.

CITY STRATEGIC PLAN

This Front-Ending Agreement fulfills the following City Strategic Plan objectives:

· GP2 – Apply management controls to achieve priorities

· TM3 – Provides infrastructure to support mobility choices

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 (Leitrim) Inc. is to post 100% securities for the full costs of the traffic signals for Bank Street at Analdea Drive, north intersection.

2. The cost of traffic signals for Bank Street at Analdea Drive, north intersection has an upset limit of $175,000.00 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 (Leitrim) Inc. for additional costs.

3. The contract for Front-ended works shall be awarded to Claridge Homes (Leitrim) 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 (Leitrim) Inc. after the works have been granted approval by the City and are warranted in 2018 or in the year warranted subject to Council approval of the funding.

6. The reimbursement for the traffic signals for Bank Street at Analdea Drive, north intersection 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 (Leitrim) Inc. will be entitled to receive indexing pursuant to conditions noted in Document 3.

8. Pursuant to condition #4, Document 3 of the City’s Front-Ending Policy regarding the timing for payment to the Claridge Homes (Leitirm) 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 scheduled.

9. Claridge Homes (Leitrim) Inc. shall enter into an agreement with the City to pay for the annual maintenance and operating costs of the Traffic Control Signal (TCS) until a study, conducted by the City confirms that this location meets the warrants for signalization. If found to be warranted, the City will assume the maintenance and operating costs of the TCS beginning January 1^st of the following year. Once the TCS is operational, Claridge Homes (Leitrim) Inc. may request the City to undertake a traffic count to determine if the intersection meets the warrants for signalization. Claridge Homes (Leitrim) Inc is responsible for reimbursing the City for all costs associated with this count and subsequent analysis. If the location is found to meet the warrants for signalization this cost will be waived.

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 and 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 Traffic Signals at the north intersection of Analdea Drive at Bank Street

	Development Charges Item	Up-Set Limit	Criteria for Repayment
A	Traffic Signals – Bank Street at Analdea Drive, North Intersection	$140,000.00	Repayment based on the actual value to upset limit
B	10% Engineering	$14,000.00	Repayment based on the actual value to upset limit (10 % of Item A)
C	15 % Contingency	$21,000.00	Upset Limit – All contingencies must be justified and supported by invoices and payment certificates (15% of Item A
D	Total Eligible Costs under Front-Ending Agreement	$175, 000.00	Repayment based on the actual value to upset limit (Items A + B + C )