5. Front-Ending Agreement for the Fernbank Community North South Arterial Road between Fernbank Road and Abbott Street

Entente initiale sur l’aménagement de la voie artérielle nord-sud du secteur FErnbank, entre le chemin Fernbank et la rue Abbott

Committee RecommendationS AS AMENDED

That Council:

1. Authorize the City to enter into a Front-Ending Agreement with the Fernbank Landowners Group for the design and construction of two lanes of the North/South Arterial Road from Fernbank Road to Abbott Street, based on 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 to the satisfaction of the Deputy City Manager, Infrastructure Services and Community Sustainability, and the City Clerk and Solicitor and that as a condition within the front ending agreement, that construction of the second phase of the arterial road be started within the sooner of 5 years of construction of Phase 1 or construction of 3,000 dwelling units.

2. In accordance with Council approval of Front-Ending Agreement Policy, pre‑commit $7,939,350, plus applicable taxes and applicable indexing, from the 2016 Capital Budget, subject to the execution of the Front-Ending Agreement.

3. Authorize expenditure to an upset limit of $7,939,350, plus applicable taxes and applicable indexing, in 2016 for the reimbursement to the Fernbank Landowners Group for the design and construction of the North-South Arterial Road from Fernbank Road to Abbott Street.

Recommandations MODIFÉE du comité

Que le Conseil :

1. d’autoriser la Ville à conclure une entente initiale avec le Fernbank Landowners Group concernant la conception et l’aménagement de deux voies formant une voie artérielle Nord-Sud, qui relie le chemin Fernbank et la rue Abbott, fondée sur les principes d’une entente initiale établis dans le document 2 et sur la politique de l’entente initiale approuvée par le Conseil et présentée dans le document 3, dont la forme et le contenu de cette entente initiale satisfont à la directrice municipale adjointe, Services d’infrastructure et Viabilité des collectivités, et au greffier et chef du contentieux, et que l’une des conditions de cette entente initiale soit que l’aménagement de la deuxième phase de l’artère en question commence dès que 5 ans se seront écoulés depuis le début des travaux de la phase 1, ou que 3 000 logements d’habitation auront été construits, selon lequel des deux se produit en premier;

2. d’autoriser, conformément à l’approbation du Conseil en matière de Politique sur l’entente initiale, un engagement préalable de 7 939 350 $, taxes et indice en sus, à partir du budget d’immobilisations de 2016, sous réserve de l’exécution de l’entente initiale;

3. d’autoriser une dépense d’un montant maximal de 7 939 350 $, taxes et indice en sus, en 2016 pour le remboursement au Fernbank Landowners Group pour la conception et l’aménagement de la voie artérielle Nord‑Sud, entre le chemin Fernbank et la rue Abbott;

Documentation

1. Deputy City Manager’s report dated 23 August 2010 (ACS2010-ICS-PGM-0169).

2. Extract of Draft Minute, 1 September 2010

Report to/Rapport au :

Transportation Committee

Comité des transports

and Council / et au Conseil

23 August 2010/ le 23 août 2010

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, Manager/Gestionnaire, Development Review-Rural Services/Examen des projets d'aménagement-Services ruraux, Planning and Growth Management/Urbanisme et Gestion de la croissance

(613) 580-2424, 15134 Derrick.Moodie@ottawa.ca

Rideau-Goulbourn (21); Stittsville (6)

Ref N°: ACS2010-ICS-PGM-0169

SUBJECT:	Front-Ending Agreement for the Fernbank Community North South Arterial Road between Fernbank Road and Abbott Street

OBJET :	Entente initiale sur l’aménagement de la voie artérielle nord-sud du secteur FErnbank, entre le chemin Fernbank et la rue Abbott

REPORT RECOMMENDATIONS

That the Transportation Committee recommend that Council:

RECOMMANDATIONS DU RAPPORT

Que le Comité des transports recommande au Conseil :

BACKGROUND

In June 2009, Council approved the Fernbank Community Design Plan and Transportation Master Plan. The above reports recommended a central North-South Arterial Road (NSAR) from Fernbank Road to Hazeldean Road to be aligned with the proposed North-South Arterial linking Hazeldean Road to Palladium Drive. The Council approved 2008 Transportation Master Plan identifies the implementation of a new-two lane road from Hazeldean Road to Fernbank Road as a Phase 2 project, 2016-2022. Consistent with this timing, the 2010 Council approved 10-year Capital Forecast includes a budget for the design and construction of this section in 2016.

The Fernbank Community Design Plan (CDP) encompasses the land between Hazeldean Road, Stittsville, Glen Cairn and Fernbank Road. The CDP identified the land use and road patterns to accommodate a community of about 30,000 residents. The North-South Arterial road will be the major transportation corridor connecting the Fernbank Community with West Kanata and provide a bypass for traffic from Stittsville Main Street. As such, the CDP also recommended that the arterial road be constructed during the first phase of the development.

DISCUSSION

In accordance with the CDP, the proposed development within the Fernbank Community has triggered the need to have the North South-Arterial road constructed from Abbott Street to Fernbank Road. A number of development applications have been submitted for draft plan approval for lands adjacent to the North South Arterial road between Fernbank Road to Abbott Street. As a condition of draft approval, this arterial road will be required to be built. In addition the developers will be required to front-end the construction of the first two lanes within the North South Arterial right-of-way.

The Fernbank Landowners Group (FLG) has formally requested to enter into a Front-Ending Agreement to front-end the cost to design and construct the first two lanes of the North-South Arterial Road. FLG is an incorporated entity consisting of the following members; Abbott‑Fernbank Holdings Inc, CRT Development Inc., Kizzel Management Corporation and 2129786 Ontario Ltd. The Front-Ending Agreement shall be subject to the Front-Ending Principles noted in Document 2 and the Council approved Front-Ending Policy noted in Document 3. Total costs for the design and construction of approximately 1.64 kilometres of the North South Arterial Road from Abbott Street to Fernbank Road is $7,939,350 plus applicable taxes.

RURAL IMPLICATIONS

N/A

CONSULTATION

Approved in June 2009, the Fernbank Community Design Plan - Transportation Master Plan, satisfied the public consultation requirements of a Schedule B Municipal Class Environmental Assessment and the Planning Act. In addition each development proposal will have to individually satisfy the Planning Act and City Council policies for notification and public consultation.

COMMENTS BY THE WARD COUNCILLOR(S)

Councillor Brooks (Ward 21) and Councillor Qadri (Ward 6) are aware of this report.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

Subject to Council approval, the City will be entering into a standard Front-Ending Agreement with Fernbank Landowners Group to front-end the cost for design and construction of the first two lanes of the North South Arterial Road from Abbott Street to Fernbank Road. Fernbank Landowners Group 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.

All appeals to Official Plan Amendment No. 77, which provides for the North-South Arterial within the Fernbank area, have either been dismissed or withdrawn. The Friends of the Greenspace Alliance are seeking leave to appeal the dismissal of their appeal but until and unless leave is granted, Amendment No. 77 is in full force and effect and the City can proceed with the approval of this report and the construction of the road.

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

In accordance with the Council approved budget estimate, the budgeted amount for the design and construction of approximately 1.64 kilometres of NSAR from Abbott Street to Fernbank Road is $7,939,350 plus applicable taxes, including engineering, project management and contingencies. Any contingent costs incurred must be justified and include supporting invoices and payment certificates.

FLG will be entitled to development charges reimbursement to an upset limit of $7,939,350 plus applicable taxes in 2016, 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 FLG and the City shall not be obligated to compensate for additional costs.

In accordance with the Revised Front-Ending Policy, the development charge portion of the reimbursement will be indexed yearly; the indexing rate will be per the Statistics Canada Infrastructure Development Charge Price Index.

The following table provides a financial summary of costs for reimbursement:

	Description	Factor	Cost	Criteria for Repayment
A	Construction		$ 5,881,000	Repayment based on actual value to upset limit
B	Engineering	10%	$ 588,100	Repayment based on actual value to upset limit
C	Project Management	10%	$ 588,100	Repayment based on actual value to upset limit
D	Contingency	15%	$ 882,150	Upset limit all values must be justified and supported by invoices and payment certificates
	Subtotal		$ 7,939,350	Repayment based on actual value to upset limit (Items A+B+C+D)
	Net HST	1.76%	$ 139,733
	Total		$ 8,079,083
	Funding
	Total Development Charges	95%	$ 7,675,128
	Total City Portion (BTE)	5%	$ 403,955
	Total		$ $ 8,079,083

Operational Impact - Maintenance costs for the proposed 1.64km N/S arterial extension are estimated at $35,000 annually. This increase in operations costs will be included in future budget submissions for Public Works commencing 2013.

SUPPORTING DOCUMENTATION

Document 1 Location Map of the Fernbank community

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 Planning and Growth Management. The Treasurer will earmark funds for repayment as noted in this report.

LOCATION MAP DOCUMENT 1

Front-Ending Principles DOCUMENT 2

1. Fernbank Landowners Group (FLG) is required to post 100 per cent securities for the full cost of the design and construction of the approximately 1.64 kilometres of the first two lanes of North South Arterial Road from Abbott Road allowance to Fernbank Rd, estimated at $7,939,350 including engineering and contingencies.

2. The cost of the first two lanes of 1.64 kilometres of North South Arterial Road is set at an upset limit of $7,939,350 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 FLG, and the City shall not be obligated to compensate for additional costs.

3. The City will reimburse FLG after the works have been granted approval by the City. Reimbursement will take place no sooner than 2016.

4. The repayment of the construction costs for the 1.64 kilometres of the North South Arterial Road shall be pursuant to the Council-approved Front-Ending Policy as referenced under Document 3.

5. FLG 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 stormwater 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 10-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 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 stormwater 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:

a. 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.

b. Payment Certificates, including the final certificate, signed by the developer’s civil engineer.

c. All invoices supporting re-payment for the front-ended works.

d. Statutory Declaration.

e. Certificate of Substantial Performance.

f. Workplace Safety and Insurance Board Clearance Certificate (WSIB).

g. 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 10-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 10-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.