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2. FRONT
– ENDING AGREEMENTS – TRAFFIC SIGNALS FOR HUNTSVILLE DRIVE AT KANATA AVENUE ACCORD DE FINANCEMENT INITIAL – FEUX DE CIRCULATION
SUR LA PROMENADE HUNTSVILLE À LA HAUTEUR DE L'AVENUE KANATA |
COMMITTEE
RECOMMENDATIONS
That Council :
1.
Authorize the City to enter into a
Front-Ending Agreement with Kanata Road Inc. for the installation of traffic
signals for Huntsville Drive at Kanata Avenue as set forth in Document 2 in accordance
with 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 2012 for the reimbursement to Kanata Road Inc. in
accordance with Document 4, subject to the option for deferral of payment described
in Document 3, for traffic signals for Huntsville Drive at Kanata Avenue
subject to the execution of the Front-Ending Agreement.
RECOMMANDATIONS DU COMITÉ
Que le Conseil :
1.
autorise la
Ville à conclure un accord de financement initial avec Kanata Road Inc. pour
l'installation de feux de circulation sur la promenade Huntsvile à la hauteur
de l'avenue Kanata, conformément au 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 de l'accord de financement initial devant satisfaire
le directeur municipal adjoint, Urbanisme et Infrastructure, et le greffier
municipal et chef du Contentieux; et
2.
autorise une
dépense de 175 000 $, plus taxes, en 2012, conformément au document 4
et sous réserve de l'option d'étalement du paiement prévue dans le document 3,
à titre de remboursement à Kanata Road Inc. pour l'installation de feux de
circulation sur la promenade Huntsvile à la hauteur de l'avenue Kanata, sous
réserve de l'exécution de l'accord de financement initial.
Documentation
1. Deputy City Manager’s Report, Planning and Infrastructure
Services dated
16 April
2012 (ACS2012-PAI-PGM-0093).
Report
to/Rapport au :
Comité de l'urbanisme
and Council / et au Conseil
16 April 2012 / le 16 avril 2012
Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice
municipale adjointe, Planning and Infrastructure/Urbanisme
et Infrastructure
Contact
Person/Personne-ressource : Don Herweyer, 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, 28311 Don.Herweyer@ottawa.ca
REPORT RECOMMENDATIONS
That the Planning Committee recommend
Council:
1.
Authorize the City to enter into a
Front-Ending Agreement with Kanata Road Inc. for the installation of traffic signals
for Huntsville Drive at Kanata Avenue as set forth in Document 2 in accordance
with 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 2012 for the reimbursement to Kanata Road Inc. in
accordance with Document 4, subject to the option for deferral of payment described
in Document 3, for traffic signals for Huntsville Drive at Kanata Avenue subject
to the execution of the Front-Ending Agreement.
RECOMMANDATIONS DU RAPPORT
Que le Comité de l'urbanisme recommande au Conseil :
1.
d'autoriser la Ville
à conclure un accord de financement initial avec Kanata Road Inc. pour l'installation
de feux de circulation sur la promenade Huntsvile à la hauteur de l'avenue
Kanata, conformément au 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 de l'accord de financement initial devant satisfaire le directeur
municipal adjoint, Urbanisme et Infrastructure, et le greffier municipal et
chef du Contentieux; et
2. d'autoriser
une dépense de 175 000 $, plus taxes, en 2012, conformément au
document 4 et sous réserve de l'option d'étalement du paiement prévue dans le
document 3, à titre de remboursement à Kanata Road Inc. pour l'installation de
feux de circulation sur la promenade Huntsvile à la hauteur de l'avenue Kanata,
sous réserve de l'exécution de l'accord de financement initial.
BACKGROUND
The property
known as 5500 Kanata Avenue is bounded by the recently closed Richardson Side Road
(untravelled) to the north and west, Terry Fox Drive to the south, and Kanata
Avenue to the east, and is being developed as a residential subdivision. The
development is known as the Broughton Subdivision (Heritage Hills) and the property
is owned by Kanata Road Inc.
Through the
subdivision process for the Broughton Subdivision, a decision was made to re-construct
Richardson Side Road as a multi-use pathway between Kanata Avenue and Terry Fox
Drive. This segment of Richardson Side
Road is no longer open to vehicular traffic.
The traffic was realigned to access the Broughton subdivision from a new
road, Huntsville Drive, intersecting Kanata Avenue.
As part of
the Kanata Avenue-Huntsville Road Modification Approval (RMA) process,
Councillor Wilkinson stated her concern with the difficulty residents have in
crossing Kanata Avenue in the vicinity of the proposed road modification. The RMA report (RMA-2011-DRI-014) and the
proposed modifications were revised to include traffic signals at the proposed
new access street, Huntsville Drive, to provide a safe crossing location for
pedestrians. The RMA was approved under
delegated authority on September 8, 2011.
Further to this RMA approval and since the Councillor requested the
traffic signals be installed before they are warranted, the City will be
responsible for the annual maintenance and operating costs.
DISCUSSION
The intersection traffic signals for Richardson
Side Road at Kanata Avenue are included in the City of Ottawa 2009 Development
Charges Background Study (Area- Specific Development Charge Projects, Services
– Roads and Related Services, Item 1.5059).
As a result of the subdivision process, a substitution of Huntsville Road
for Richardson Side Road in this line item was accepted. The capital budget forecast currently
identifies budget items to a maximum amount as follows:
1. Richardson
Side Road at Kanata Avenue: Total Cost is $175,000 for Traffic Signal and
Intersection Program in 2010.
Kanata Road Inc. is requesting to
front-end the cost of traffic signals for the Huntsville Drive at Kanata Avenue
intersection. The developer wishes to start work on the roadway modifications
for the Huntsville Drive at Kanata Avenue intersection in the spring of 2012
and complete the project by the end of the year. The works are required to accommodate the
vehicle traffic accessing the Broughton subdivision and pedestrian traffic
between residential neighbourhoods. The
traffic signals for Hunstville Drive at Kanata Avenue are part of the roadway
modification works.
In order for the project to proceed in
2012, it is recommended that funds be obtained from the 2009 Traffic Signals
and Intersection Program (account 904913).
Within this account, $175,000 is available for traffic signals at Kanata
Avenue and Walden Drive which is currently only 55 % warranted. In order for Kanata Avenue and Huntsville
Road to proceed, it is recommended that Kanata Avenue and Walden Drive be
delayed until warrants are met in future years, at which time a new budget
request will be forward. The developer
will be reimbursed subject to Council approval.
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
Kanata Road Inc. has agreed to front-end
the cost of the traffic signals for the intersection of Huntsville Drive at
Kanata Avenue 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 Marianne Wilkinson 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 for the installation of traffic signals at Huntsville Drive
and Kanata Avenue. The developer will be
entitled to reimbursement of costs based on the principles set out in Documents
2 and 4 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 the intersection of Huntsville
Drive at Kanata Avenue 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 2012 timing, are based on the 2009 Development Charge Study.
Funding will
be provided 95 per cent from development charges and 5 per cent from non‑growth
funding sources. Funds are available
within existing Traffic and Signal Intersection budget.
|
|
Development
Charges Item |
Up-Set
Limit |
Criteria
for Repayment |
|
A |
Traffic Signals
– intersection Huntsville
Drive at Kanata Avenue |
$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 the developer and the City shall not be obligated to compensate for
additional costs. (Items A +
B + C ) |
ACCESSIBILITY
IMPACT
There
are no accessibility implications associated with this report.
ENVIRONMENTAL IMPLICATIONS
There are no environment implications
associated with this report.
TECHNOLOGY
IMPLICATIONS
There are no technical implications
associated with this report.
TERM OF
COUNCIL PRIORITIES
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.
Kanata Road Inc. is to post 100% securities for the full costs of the traffic
signals for the intersection at Huntsville Drive at Kanata Avenue.
2.
The cost of traffic signals for the intersection of Huntsville Drive at Kanata
Avenue 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 Kanata Road Inc. for
additional costs.
3.
The contract for Front-ended works shall be awarded to Kanata Road 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 Kanata Road Inc. after the works have been granted
approval by the City and are warranted in 2012 or in the year warranted subject
to Council-approval of the funding.
6.
The reimbursement for the traffic signals for the intersection at Huntsville
Drive and Kanata Avenue 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.
Kanata Road 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 Kanata Road 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.
FRONT-ENDING POLICY DOCUMENT
3
Front-Ending Agreements are requested
by owners and/or 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: owners/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 intersection of Kanata Avenue and Huntsville Drive
|
|
Development
Charges Item |
Up-Set
Limit |
Criteria
for Repayment |
|
A |
Traffic
Signals – Kanata Avenue at Huntsville Drive 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 the developer and the City Shall not be obligated to compensate for
additional costs. (Items A +
B + C ) |