Report
to/Rapport au :
Comité
de l'urbanisme
and Council / et au Conseil
07 October 2011 / le 07 octobre 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
REPORT RECOMMENDATIONS
That Planning Committee recommend Council:
1.
Authorize the City to enter into a Front-Ending Agreement
with Riverside South Development Corporation for the design and construction of
the Riverside South, Stormwater Management Pond 3, based upon the principles
set forth in Document 1 and the Council Approved Front-Ending Policy in
Document 2 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 Solicitor;
2.
Approve the expenditure of $18,472,000 plus
applicable taxes and indexing for the design and construction, and land costs
of Pond No. 3 from development charges collected pursuant to By-law 2009-217
subject to the execution of the Front-Ending Agreement;
3.
Approve the expenditure of $1,145,000 plus
applicable taxes and indexing for alterations to Tributary No. 3, $489,900 plus
applicable taxes and indexing for alterations to Tributary No. 4, $396,060 plus
applicable taxes and indexing for alterations to Tributary No. 7A, $861,120
plus applicable taxes and indexing for alterations to Tributary No. 7B,
$1,462,800 plus applicable taxes and indexing for alterations to Tributary No. 10,
and $2,760,000 plus applicable taxes and indexing for fish compensation from
development charges collected pursuant to By-law 2009-217 subject to the
execution of the Front-Ending Agreement;
4.
Authorize the City to enter into subdivision
agreements which provide for the repayment of storm sewer oversizing set at $9,877,000
plus applicable taxes in accordance with the principles set forth in Document
2;
5.
Authorize the City to enter into subdivision
agreements, which provide for the remuneration of land costs associated with
Pond 3; and
6.
Authorize the City to establish a new internal
order in the amount of $35,463,880 plus applicable taxes and indexing.
RECOMMANDATIONS DU
RAPPORT
Que le Comité des services
organisationnels et du développement économique recommande ce qui suit au
Conseil :
1.
d’autoriser la Ville à conclure une entente de financement préalable
avec Riverside South Development Corporation pour la conception et la
construction du bassin de rétention des eaux pluviales no 3 de
Riverside-Sud, selon les principes exposés dans le Document 1 et la Politique
d’entente de financement préalable approuvée par le Conseil et présentes comme
Document 2, la forme et le contenu définitifs de cette entente de financement
préalable devant être à la satisfaction de la directrice municipale adjointe,
Services d’infrastructure et Viabilité des collectivités, ainsi que du chef du
contentieux;
2.
d’approuver les dépenses de 18 472 000 $ (taxes et
indexation en sus) couvrant la conception, la construction et les coûts de
terrain du bassin no 3, à partir des frais de redevance
d’aménagement perçus conformément au Règlement municipal 2009-217, sous réserve
de l’application de l’entente de financement préalable;
3.
d’approuver les dépenses de 1 145 000 $ (taxes et
indexation en sus) couvrant les modifications à l’affluent no 3, de
489 900 $ (taxes et indexation en sus) couvrant les modifications à
l’affluent no 4, de 396 060 $ (taxes et indexation en
sus) couvrant les modifications à l’affluent no 7A, de
861 120 $ (taxes et indexation en sus) couvrant les modifications à
l’affluent no 7B, de 1 462 800 $ (taxes et
indexation en sus) couvrant les modifications à l’affluent no 10,
et de 2 760 000 $ (taxes et indexation en sus) couvrant les compensations
en matière de poissons, à partir des frais de redevance d’aménagement perçus
conformément au Règlement municipal 2009-217, sous réserve de l’application de
l’entente de financement préalable;
4.
d’autoriser la Ville à conclure des ententes de lotissement permettant
le remboursement du surdimensionnement de l’égout pluvial, estimé
à 9 877 000 $ (taxes en sus), conformément aux principes
exposés dans le Document 2;
5.
d’autoriser la Ville à conclure des ententes de lotissement permettant
la rémunération des coûts de terrain associés au bassin no 3;
6.
d’autoriser la Ville à établir une nouvelle commande interne au montant
de 35 463 880 $ (taxes et indexation en sus).
BACKGROUND
The Riverside South Community is located in the area bounded by Leitrim Road to the north, Rideau Road to the south, Bowesville Road to the east and the Rideau River to the west. In 2005, the Riverside South Community Design Plan (CDP) was approved by Council, outlining the direction for development of the vacant lands in the area. This CDP was further updated in January 2010 due mainly to changes necessitated by the Master Servicing Study. Stormwater Management Facility Pond 2 was previously constructed to accommodate development proceeding to the west of Limebank Road. Riverside South Development Corporation (RSDC) wishes to proceed with the development of their land holdings on the east side of Limebank Road which will necessitate the construction of Pond 3. The Ottawa Catholic School Board purchased lands from RSDC east of Limebank Road and north of Spratt Road and have constructed a high school in this location. The high school is presently operating on interim stormwater management measures until such time as Pond 3 is constructed.
DISCUSSION
The
estimated cost to acquire land, design and construct Riverside South SWM
Facility Pond 3 is $18,472,000. RSDC is
prepared to front-end the total cost of the design and construction and, upon
Council approval, will be paid back based on the principles set out in Document
1 pursuant to the Council-approved Front-Ending policy in Document 2.
Under
the proposed Front-Ending Agreement, RSDC would be initially responsible for
the cost of the design and construction of Pond 3. Such design and construction
would have to be done in accordance with City and other regulatory standards.
The construction of the pond would be subject to inspection by the City and
RSDC will be required to ensure that any deficiencies are remedied.
Following
completion of Pond 3, RSDC would be reimbursed quarterly on a pro-rata basis
from the stormwater development charges imposed by By-law 2009-217 collected
from the benefiting area for Pond 3. The amount outstanding to RSDC would be
indexed at the same rate as the stormwater development charge payable under the
by-law. Should the cost of the pond
exceed the development charges ultimately collected from the benefiting area,
the extra cost would be borne by RSDC.
Together
with the pond, RSDC will also be alterating Tributary Nos. 3, 4, 7A, 7B, 10 as identified in the Master
Servicing Study, and constructing storm sewers, which will be oversized to
accommodate development of lands other than those being provided for
development at this time. They will also be constructing fish habitat to
compensate for losses due to development.
The stormwater Development Charge By-laws, including By-law 2009-217,
each contain a Schedule “D” which provides for payments for oversizing of storm
sewers, fish habitat compensation and alterations to tributaries.
The annual operating impact is estimated at
$25,000 beginning in 2014.
RURAL IMPLICATIONS
N/A
CONSULTATION
RSDC is the main benefitting owner of the tributary area of Pond 3 and have agreed to front-end the works in accordance with the principles set forth in Documents 1 and 2.
COMMENTS BY THE WARD COUNCILLOR
Councillor Steve Desroches requires assurances that the odour problem plaguing Pond 2 will not occur in Pond 3 as Pond 2 was likewise front-ended.
LEGAL IMPLICATIONS:
There are no legal implications associated with this report.
RISK MANAGEMENT IMPLICATIONS
There are no risk implications to the City associated with this report.
FINANCIAL IMPLICATIONS
The total estimated costs to be reimbursed to
the Front Enders are summarized in the following table:
|
Development Charge Item |
Development Charge Up-Set Limit |
Criteria for Repayment |
|
Design, Construction, and Land (less
constraint lands) of Riverside South Pond 3 |
$18,472,000 Plus applicable taxes and indexing. |
Repayment based on actual value of pond to an
upset limit of $18,472,000. (Tablelands based on land appraisal) |
|
Trunk Storm Sewer Over-sizing for sewers,
which are tributary to Pond 3. |
$9,877,000 Plus applicable taxes. |
Upset limit based on estimated linear meters
of DC over-sizing constructed pursuant to DC background study at set rate per
linear meter and Front Ending Policy |
|
Tributary No. 3 Alterations |
$1,145,000 Plus applicable taxes and indexing. |
Repayment based on actual value of
alterations to an upset limit of $1,145,000 |
|
Tributary
No. 4 Alterations |
$489,900 Plus applicable taxes and indexing. |
Repayment based on actual value of
alterations to an upset limit of $489,900. |
|
Tributary
No. 7A Alterations |
$396,060 Plus applicable taxes and indexing. |
Repayment based on actual value of
alterations to an upset limit of $396,060. |
|
Tributary
No. 7B Alterations |
$861,120 Plus applicable taxes and indexing. |
Repayment based on actual value of
alterations to an upset limit of $861,120. |
|
Tributary
No. 10 Alterations |
$1,462,800 Plus applicable taxes and indexing. |
Repayment based on actual value of
alterations to an upset limit of $1,462,800. |
|
Fish
Habitat Compensation |
$2,760,000 Plus applicable taxes and indexing |
Repayment based on actual value of
compensation to an upset limit of $2,760,000. |
|
Total |
$35,463,880 Plus applicable
taxes and indexing. |
|
Subject to Council approval, in the year that
the requirements for repayment are fulfilled (estimated to be 2014), a new
internal order will be established in the amount of $35,463,880 plus applicable
taxes and indexing, to be funded from Stormwater Development Charges collected
from Area S-1, By-Law 2009-217. The Front-Enders will be paid back pursuant to
the principles set out in Document 1 and the Council Approved Front-Ending
Policy as noted in Document 2. Reimbursements to the Front Enders will be made
on a quarterly basis (as the City collects the Stormwater development charges
in the area) following the fulfillment of the requirements for repayment
identified in Item 13 of Document 2.
Should other Development Charge stormwater
related works, within the same Stormwater Development Charge Area, be
constructed during the life of this Front-Ending Agreement, as identified in
By-Law 2009-217 and in Document 3, the Front-Enders acknowledge that they will
share on an equal basis with other stormwater drainage projects in the
distribution of Development Charge revenue.
The annual operating impact is estimated at
$25,000 beginning in 2014.
TECHNOLOGY IMPLICATIONS
N/A
CITY STRATEGIC PLAN
Ensure that the City infrastructure required for new growth is built or improved as needed to serve growth.
APPLICATION PROCESS TIMELINE STATUS
N/A
SUPPORTING DOCUMENTATION
Document 1 Principles of Front-Ending Agreement
Document 2 Council Approved Front-Ending Policy
Document 3 Stormwater Collection Area Map Gloucester (Area S-1)
DISPOSITION
The final form of the agreement will be prepared by Legal Services in consultation with the Planning and Growth Management Department.
1. The Front-Ender shall be required to post a letter of credit or cash deposit equal to the value of the design and construction of Pond 3 and the alterations to Tributary Nos. 3, 4, 7A, 7B, 10 based upon a construction contract between the Owner and a construction company.
2. Contract for works to be awarded by Riverside South Development Corporation (RSDC) subject to prior review by the City.
3. Construction to be completed to City and other regulatory standards.
4. Stormwater Facility will only be assumed by the City when the facility meets the requirements of all approval agencies and has been completed to City standards.
5. Cost of the facility initially borne by RSDC.
6. RSDC to be reimbursed quarterly from stormwater development charges collected within the benefiting area.
7. The cost of the design, construction, and remuneration of land for the Riverside South Pond 3 is set at an upset limit of $18,472,000, $1,145,000 for Tributary No. 3 alterations, $489,900 for Tributary No. 4 alterations, $396,060 for Tributary No. 7A alterations, $861,120 for Tributary No. 7B alterations, $1,462,800 for Tributary No. 10 alterations, and $2,760,000 for fish habitat compensation. Should the cost exceed the upset limits, the additional cost shall be borne by the Front-Ender, and the City shall not be obligated to compensate the Front-ender for additional costs.
8. Amount outstanding to RSDC to be indexed at the same rate as the development charges.
9. Should other Development Charge storm related works be constructed during the life of this Front Ending agreement as identified in By-Law 2009-217 (within the stormwater collection area identified in Document 3), the Front-Ender acknowledges that they will share with other stormwater drainage projects in the distribution of Development Charge revenue collected.
10. Land remuneration is subject to a land appraisal. Land compensation shall be for tableland only and shall be net of any constraint lands.
JUNE 25, 2009 COUNCIL APPROVED FRONT-ENDING POLICY DOCUMENT 2
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. Storm water 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 storm water 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 storm water 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.
STORMWATER COLLECTION AREA MAP GLOUCESTER
