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2. RESIDENTS' PETITION FOR THE INSTALLATION OF SANITARY SEWER INFRASTRUCTURE AS A LOCAL IMPROVEMENT ON merivale road
PÉTITION DES RÉSIDENTS EN VUE DE L’INSTALLATION DE L’INFRASTRUCURE D’ÉGOUT SANITAIRE à titre d'amélioration locale du chemin Merivale
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Committee recommendation
That Council approve a by-law to undertake the construction of a sanitary sewer on Merivale Road as petitioned Local Improvement works in accordance with the cost apportionment as outlined in this report.
RECOMMENDATION DU COMITÉ
Que le Conseil approuve un règlement visant à entreprendre les travaux de construction d’un égout sanitaire sur le chemin Merivale dans le cadre de la pétition reçue sur les travaux d’amélioration locale et conformément à la répartition des coûts, comme il est exposé dans le présent rapport.
DOCUMENTATION
1. Deputy City Manager’s report, Infrastructure Services and Community Sustainability, dated 31 May 2010 (ACS2010-ICS-INF-0007).
Report to/Rapport au :
Planning and Environment Committee /
Comité de l'urbanisme et de l'environnement
and Council / et au Conseil
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 : Wayne Newell, General Manager / Directeur général
Infrastructure Services / Services d'infrastructure
(613) 580-2424 x16002, Wayne.Newell@ottawa.ca
REPORT RECOMMENDATION
That the Planning and Environment Committee recommend Council approve a by-law to undertake the construction of a sanitary sewer on Merivale Road as petitioned Local Improvement works in accordance with the cost apportionment as outlined in this report.
RECOMMANDATION DU RAPPORT
Que le Comité de l’urbanisme et de l’environnement recommande au Conseil d’approuver un règlement visant à entreprendre les travaux de construction d’un égout sanitaire sur le chemin Merivale dans le cadre de la pétition reçue sur les travaux d’amélioration locale et conformément à la répartition des coûts, comme il est exposé dans le présent rapport.
BACKGROUND
There are three (3) existing private properties abutting Merivale Road that remain without access to the municpal sanitary sewer system (refer to Document 1). Muncipal drinking water service is already accessible to the three properties. In accordance with the Local Improvement Policy approved by Council in May 2006 (ACS2006-PWS-INF-0001) and Ontario Regulation 586/06, servicing of these properties could be considered if:
- the benefiting properties are located within the Public Service Area as identified on the Official Plan;
- the existing public system is able to accommodate the capacity requirements to service the new area; and
- the property owners sign a petition with at least two-thirds of the total number of properties in support of proceeding with the servicing representing an ownership of at least 50% of the total assessed value of the properties.
Interest from the neighbouring Rideau Glen community for extension of municipal services was received by the City in late 2007. The Rideau Glen community subsequently submitted a successful Local Improvement Petition for extension of a sanitary sewer to the City in 2008. The Rideau Glen Local Improvement project was approved by Council in April 2009 (ACS2009-ICS-INF-0002), and design is currently underway with construction expected to proceed later in 2010.
Late summer 2009, staff received the most recent request for a sanitary sewer extension for three (3) properties located on Merivale Road, just north of the Rideau Glen Local Improvement area. To provide sanitary sewer service to the three properties, the extension will also abut another private property along the route that has previously received benefit of sewers in the South Merivale Business Park (refer to Document 1). The property is identified as 11 Beckstead Road will be serviced internally to the business park). This property does not receive benefit from the proposed sewer extension and is excluded from the current Local Improvement petition.
Under governing regulation provisions, the City is responsible for the share of the project costs that would otherwise be applicable to the excluded property. The sanitary sewer Local Improvement petition for Merivale Road was limited to the three (3) properties currently without sewer access on the understanding that the City would be responsible for the share of the project costs that would otherwise apply to the abutting private property.
The petition was provided to the lead petitioner for circulation and information packages with cost recovery limits were provided to the owners of each of the three benefiting properties. The petition was returned to the City on 12 January 2010 with signatures in support of the Local Improvement from the owners of two (2) of the three (3) applicable properties. The petition documents were certified by the City Clerk on 19 February 2010 as having been sufficiently signed as prescribed by O.Reg. 586/06.
The purpose of this report is to seek approval from Council to establish a Local Improvement By-law for the extension of a municipal sanitary sewer to benefiting properties along Merivale Road consistent with the terms identified in the certified petition.
DISCUSSION
The three benefiting properties can be serviced by installing a local sanitary sewer on Merivale Road with a connection to the existing West Rideau Collector sanitary sewer on Merivale Road. The work consists of approximately 150 metres of sanitary sewer, installation of service laterals within the municipal right-of-way from the sanitary sewer to the property line and the related roadway.
Subject to Committee and Council approval to establish a Local Improvement By-law for the sewer extension, the project would proceed to detailed design and construction. Design is expected to start in 2010 with construction in either late 2010 or spring 2011. Design and construction could be undertaken in conjunction with design and construction for the Rideau Glen Local Improvement project.
Preparation of the special assessment roll, the Committee of Revision process and the levy of the final charges are expected to occur approximately 6 months after the end of construction.
Capital Costs
The estimated cost for the project is $250,000, including design and engineering, project management and on-site construction inspection. A funding request for the Local Improvement project has been included as part of the 2010 Capital Rate Budget subject to a successful petition and Committee and Council passage of a by-law to undertake the work (order number 905558).
Cost Apportionment - Private Property Owners
For Local Improvement projects, the City initially pays all the project costs up front and then recovers the non-City share from benefiting private property owners. Each benefiting property is levied their share through a charge on the property tax bill known as a Local Improvement charge. The charge to an individual property includes their share of the sanitary sewer cost plus cost of the service laterals constructed within the road allowance up to the property line. The non-City share to be recovered from the benefiting property owners is estimated at $93,400 for the mainline works and $11,700 for the portion of the service laterals in the road allowance ($105,100 in total).
The $93,400 non-City share of the sanitary sewer main cost is to be apportioned between the benefiting private property owners on the basis of adjusted property frontage. Adjustments are necessary in situations where property dimensions may not be an adequate reflection of the relative benefit. The Local Improvement Policy and supporting legislation allow for adjustments to frontage based on the relative assessed value and surface area of the benefiting properties. Since the benefiting properties are of irregular shape, the mainline cost for the individual properties was assessed on the basis of an adjusted frontage. As part of the petition process, individual property owners were provided with information on the charge estimates specific to their property. The cost per property for providing all sanitary sewer works within the public road allowance, including services to the property line, is in the range of $21,800 to $42,100.
The cost estimates provided to the benefiting property owners reflect the most current estimates by City staff. Prior to assessing the final charges, the benefiting property owners will have an opportunity to express their concerns at a Committee of Revision. All affected property owners will be notified in advance of the date, time and location of the Committee of Revision, as well as the amount of the Local Improvement charge per the requirements of the Local Improvement legislation. If no concerns are expressed prior to the Committee of Revision meeting date, then there will be no need for a meeting and the charges will be finalized.
Additional Costs for Works on Private Property
The Local Improvement charge is only applicable for works located within publicly owned property, such as road allowances. The City does not undertake work on private property to complete the connection from the service lateral located at the property line to the house. The cost and coordination of the work to install service laterals on private property is the responsibility of the property owner. An information sheet detailing various fees associated with the private property work was provided in the packages distributed to the property owners in advance of circulating the Local Improvement Petition.
City's Share of Costs
Under governing regulation provisions, the City is responsible for the share of the project costs that would otherwise be applicable to the excluded property. The City's share of the project is estimated at $144,900.
In the case of local improvement projects, property owners desire certainty with respect to their financial commitment in order to formulate a decision to support the petitioned work or not. Council's approved Local Improvement Policy identifies that for any given local improvement project, the charge rate(s) to the benefiting property owners will not exceed the pre-construction estimated rate(s) approved by Council. This allows the owners' share of the cost of a local improvement project to be a capped amount based on the best estimates at the time of the petition for the works. Should final construction costs exceed the capped limits set out in the petition, the City's share will increase.
Imposing the Charge
All charges are set by by-law and levied on the tax bill. The City allows the full charge for the property to be paid without carrying charges in a lump sum amount before the charge against the property comes into effect. Otherwise the property owner will pay the charge with carrying charges in equal annual instalments through the tax bill over a period of twenty (20) years.
Prior to the charges being levied on the property tax bill, property owners will be given the opportunity to appeal their respective charges to the City's Committee of Revision.
Operating Budget Implications
The Operating Budget impact for the new sewer works is estimated at $900 annually. This includes maintenance, but does not include ultimate renewal and replacement costs.
When the new system is commissioned, and as individual property connections are confirmed through the permitting process, sewer surcharge levies will be applied to customers as part of the City's standard billing practice.
RURAL IMPLICATIONS
There are no rural implications.
CONSULTATION
After initiating the Local Improvement process in 2007 for provision of municipal services, the Rideau Glen community successfully petitioned for the extension of a sanitary sewer by Local Improvement in 2008 that was approved by Council in 2009. With this successful reference, the Merivale Road community approached the City in summer 2009 for provision of a sanitary sewer.
In November 2009, City staff met with the owners of the three affected properties. The purpose of the meeting was to discuss the Local Improvement process for the sanitary sewer installation, the implication to property owners and the petition requirements. The results of the meeting were reported to ward office staff. Subsequently, in December 2009, the three affected property owners met with City staff again to clarify some property specific issues.
Individual property owner packages, including estimated costs specific to each property, were distributed to the owners of each of the three benefiting properties in November 2009. The formal Local Improvement petition was also provided to the owner acting as the lead petitioner in November 2009 so that the petition could be circulated for signing.
A Committee of Revision will be held following construction with notice of the proposed cost assessment provided to each of the benefiting owners before finalizing the Local Improvement charge for the project.
COMMENTS BY THE WARD COUNCILLOR
The Ward Councillor has been consulted and is in support of this project.
LEGAL/RISK MANAGEMENT IMPLICATIONS
The authority for municipalities to undertake works as local improvements is provided through Municipal Act 2001 as prescribed under Ontario Regulation 586/06. The Merivale Road Local Improvement works have come forward as a petitioned request that has followed all necessary regulation processes and the petition has been certified as sufficiently signed under the provision of the regulation. Committee and Council passage of a by-law to undertake the works as a local improvement is the legal requirement to establish the authority to proceed with the work as a local improvement with the intent to impose the charge against benefiting property owners once the work is complete.
CITY STRATEGIC PLAN
This report is consistent with the Service Delivery and Sustainable Finances priorities of the City Strategic Plan.
TECHNICAL IMPLICATIONS
N/A
FINANCIAL IMPLICATIONS
Funds in the amount of $250,000 have been identified in the 2010 Capital Budget – Rate Supported Programs. Subject to Council approval of this report, a budget adjustment will be processed to reflect the new funding arrangement – the City’s share of $144,900 and the benefiting property owners’ share of $105,100. Should final construction costs exceed the pre-construction estimate of $250,000, the City would fund 100% of the additional costs.
The Operating Budget impact for the new sewer works is estimated at $900 annually. This includes maintenance, but does not include ultimate renewal and replacement costs.
SUPPORTING DOCUMENTATION
Document 1 – Merivale Road Local Improvement Area Plan
Document 2 – Petition Cover
DISPOSITION
Legal Services will finalize the by-law for undertaking the works as a local improvement. The by-law will be circulated to the Finance Department, Deputy City Treasurer, Revenue Branch to flag for tax certificate and collection purposes.
Infrastructure Services will administer, tender, construct, commission, as well as prepare the post construction Local Improvement documentation necessary to prepare final statement of costs, preliminary special assessment rolls and briefing summaries for the Local Improvement Committee of Revision.
Document 1
Merivale Road Local Improvement Area Plan
Figure 1 – Properties Subject to Cost Recovery for Public Sanitary Sewer Infrastructure as a Local Improvement
Document 2
Petition Cover
