1. Front-Ending Agreement For Blackburn Hamlet Bypass Extension From Portobello Boulevard To Montmere Avenue

Entente Initiale Pour Le Prolongement De La Rocade De Blackburn Hamlet Du Boulevard Portobello À L’avenue Montmere

Committee Recommendations

That Council:

1. Authorize the City to enter into a Front-Ending Agreement with 1470424 Ontario Inc. (Cardel Homes) and 1048219 Ontario Inc. (Regional Group of Companies) for the design and construction of two lanes of Blackburn Hamlet Bypass extension, from Portobello Boulevard to Montmere Avenue, 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 Department and the City Clerk and Solicitor.

2. Authorize the expenditure of $3,003,337 in 2009 for the reimbursement to 1470424 Ontario Inc. (Cardel Homes) and 1048219 Ontario Inc. (Regional Group of Companies) for the design and construction of Blackburn Hamlet Bypass extension from Portobello Boulevard to Montmere Avenue 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 1470424 Ontario Inc. (Cardel Homes) et 1048219 Ontario Inc. (Regional Group of Companies) pour la conception et la construction de deux voies de prolongement de la rocade de Blackburn Hamlet, du boulevard Portobello à l’avenue Montmere, fondée sur les principes initiaux exposés dans le Document 2 et sur la politique initiale approuvée par le Conseil et indiquée dans le Document 3, le format et le contenu de l'entente initiale étant à la satisfaction de la directrice municipale adjointe, Services d'infrastructure et Viabilité des collectivités, et du greffier municipal et chef du contentieux.

2. autorise la dépense de 3 003 337 $ en 2009 afin de rembourser 1470424 Ontario Inc. (Cardel Homes) et 1048219 Ontario Inc. (Regional Group of Companies) pour la conception et la construction de deux voies de prolongement de la rocade de Blackburn Hamlet, du boulevard Portobello à l’avenue Montmere, sous réserve de l’exécution de l’entente initiale.

Documentation

1. Deputy City Manager’s report, Infrastructure Services and Community Sustainability, dated 23 November 2009 (ACS2009-ICS-PGM-0008).

Report to/Rapport au :

Transportation Committee

Comité des transports

and Council / et au Conseil

23 November 2009 / le 23 novembre 2009

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 : Michael Wildman, Manager/Gestionnaire, Development Review-Suburban Services/Examen des projets d'aménagement-Services suburbains, Planning and Growth Management/Urbanisme et Gestion de la croissance

(613) 580-2424, 27811 Mike.Wildman@ottawa.ca

Cumberland (19)

Ref N°: ACS2009-ICS-PGM-0008

SUBJECT:	FRONT-ENDING AGREEMENT FOR BLACKBURN HAMLET BYPASS EXTENSION FROM PORTOBELLO BOULEVARD TO MONTMERE AVENUE

OBJET :	ENTENTE INITIALE POUR LE PROLONGEMENT DE LA ROCADE DE BLACKBURN HAMLET DU BOULEVARD PORTOBELLO À L’AVENUE MONTMERE

REPORT RECOMMENDATIONS

That the Transportation Committee recommend that Council:

RECOMMANDATIONS DU RAPPORT

Que le Comité des transports recommande au Conseil :

1. d’autoriser la Ville à signer une entente initiale avec 1470424 Ontario Inc. (Cardel Homes) et 1048219 Ontario Inc. (Regional Group of Companies) pour la conception et la construction de deux voies de prolongement de la rocade de Blackburn Hamlet, du boulevard Portobello à l’avenue Montmere, fondée sur les principes initiaux exposés dans le Document 2 et sur la politique initiale approuvée par le Conseil et indiquée dans le Document 3, le format et le contenu de l'entente initiale étant à la satisfaction de la directrice municipale adjointe, Services d'infrastructure et Viabilité des collectivités, et du greffier municipal et chef du contentieux.

2. d’autoriser la dépense de 3 003 337 $ en 2009 afin de rembourser 1470424 Ontario Inc. (Cardel Homes) et 1048219 Ontario Inc. (Regional Group of Companies) pour la conception et la construction de deux voies de prolongement de la rocade de Blackburn Hamlet, du boulevard Portobello à l’avenue Montmere, sous réserve de l’exécution de l’entente initiale.

BACKGROUND

In October 2003, the “Blackburn Hamlet Bypass Extension Environmental Study Report Amendment” was completed under Schedule “C” of the Municipal Environmental Assessment process. The study identified the proposed realignment of the future four-lane arterial roadway of Blackburn Hamlet Bypass (hereinafter called “BHBP”) from Tenth Line Road to Trim Road. The City's recent Council approved Transportation Master Plan indicates the implementation of the first two lanes of BHBP from Portobello Boulevard to Trim Road under Phase 1, from 2009 to 2015. Consistent with this timing, and due to growth pressures, the 2009 Council approved 10-year capital forecast includes a budget for the extension of BHBP for this section in 2009.

Due to growth pressures in the Avalon community of Cumberland, east of Tenth Line Road and south of Innes Road, the first two lanes of BHBP from Tenth Line Road to Portobello Boulevard were completed in 2007. Currently, the landowners 1470424 Ontario Inc. (hereinafter called “Cardel”), and 1048219 Ontario Inc. (hereinafter called “Regional”) have approved development applications for the lands to the east of Portobello Boulevard and north of the proposed BHBP. As a condition of these proposed subdivision agreements, and to provide access to the properties, Cardel and Regional, are required to Front-End the design and construction of the first two lanes of BHBP from Portobello Boulevard to Montmere Avenue. The City will construct the section of BHBP from Montmere Avenue to Trim Road when the City constructs the water main in that location.

DISCUSSION

The first two lanes of BHBP from Portobello Boulevard to Trim Road was included in the City’s 2009 Development Charge (DC) By-law and development charge funds will be allocated to this project accordingly. Consistent with this DC By-law, the 2009 Council approved 10-year capital forecast included a budget for this project in 2009.

Cardel and Regional are prepared to Front-End the cost to design and construct the first two lanes of BHBP from Portobello Boulevard to Montmere Avenue subject to the Front-Ending principles noted in Document 2 and the Council approved Front-Ending policy noted in Document 3. Total project cost for the design and construction of approximately 990 metres of BHBP from Portobello Boulevard to Montmere Avenue is estimated at $3,003,337.

RURAL IMPLICATIONS

N/A

CONSULTATION

Public consultations were undertaken in 2003 in accordance with the Schedule “C” Municipal Class Environmental Assessment process for the BHBP extension. In addition, the development applications will follow the Planning Act and City Council policies for public notification and consultation.

COMMENTS BY WARD COUNCILLOR

Councillor Jellett concurs with the report.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

There are no legal/risk management impediments to the implementation of this report's recommendations.

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.

TECHNICAL IMPLICATIONS

N/A

FINANCIAL IMPLICATIONS

The City’s DC By-law 2009-216, as enacted, included the first two lanes of BHBP from Portobello Boulevard to Montmere Avenue, and DCs are available to fund this project in 2009, the year the project has been budgeted, in accordance with the 2009 Council approved 10-year capital forecast. The estimated cost for the design and construction of the approximately 990 metres of BHBP from Portobello Boulevard to Montmere Avenue is $3,003,337, including engineering and contingencies. Any contingent costs incurred must be justified and include supporting invoices and payment certificates. Funding for this project is currently available under capital project account #903216 – Blackburn Hamlet Bypass Tenth Line to Trim.

Cardel and Regional will be entitled to DC reimbursement to an upset limit of $3,003,337 in 2009, 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. Should the cost exceed the upset limit, the additional cost shall be borne by Cardel and Regional, and the City shall not be obligated to compensate for additional costs. The following table provides a financial summary of costs for reimbursement:

Item	Development Charge Item	Up-Set Limit	Criteria for Repayment
A	Construction of the first 2 lanes of 990 metres of BHBP	$2,402,670	Repayment based on actual value to upset limit
B	10% Engineering	$240,267	Repayment based on actual value to upset limit
C	15% Contingency	$360,400	Upset limit - All contingencies must be justified and supported by invoices and payment certificates.
D	Total DC eligible costs under Front-Ending Agreement	$3,003,337	Repayment based on actual value to upset limit (Items A+B+C)
	Reimbursement to Cardel from Portobello Boulevard to Provence Avenue	$2,180,965	Repayment based on actual value to upset limit
	Reimbursement to Regional from Provence Avenue to Montmere Avenue	$822,372	Repayment based on actual value to upset limit

Annual operating costs of the proposed BHBP extension is estimated at $30,000 commencing in 2010.

SUPPORTING DOCUMENTATION

Document 1 Map of Blackburn Hamlet By-Pass Extension

Document 2 Front-Ending Agreement Principles

Document 3 Council Approved Front-Ending Policy

DISPOSITION

The final form of the Front-Ending agreement will be prepared by the City Clerk and Solicitor Department in consultation with the Planning and Growth Management Department.

MAP OF BLACKBURN HAMLET BYPASS EXTENSION DOCUMENT 1

FRONT-ENDING AGREEMENT PRINCIPLES DOCUMENT 2

1. Cardel and Regional are required to post 100 per cent securities for the full cost of the design and construction of the approximately 990 metres of the first two lanes of BHBP from Portobello Boulevard to Montmere Avenue estimated at $3,003,337 including engineering and contingencies.

2. The cost of the first two lanes of 990 metres of BHBP extension is set at an upset limit of $3,003,337, 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 Cardel and Regional, and the City shall not be obligated to compensate for additional costs.

3. The City will reimburse Cardel and Regional after the works have been granted approval by the City.

4. The repayment of the construction costs for the 990 metres of the BHBP extension shall be pursuant to the Council approved Front-Ending Policy as referenced under Document 3.

5. Cardel and Regional will be entitled to receive indexing pursuant to conditions noted in Document 3.

JUNE 25, 2009 COUNCIL APPROVED 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. Storm water ponds and related sewer works that are 100 per cent 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 10-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 10-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.