Planning and Environment Committee /
Comité de l'urbanisme et de l'environnement
and Council / et au Conseil
6 April 2010 / le 6 avril 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 : W. Newell, Director / Directeur
Infrastructure
Services/Services d’infrastructure
(613)
580-2424 x16002, Wayne.Newell@ottawa.ca
That the Planning and Environment
Committee recommend Council approve a by-law to undertake the construction of a
sanitary sewer on Swans Way South as petitioned Local Improvement works in
accordance with the cost apportionment as outlined in this report.
Que le Comité de
l’urbanisme et de l’environnement recommande au Conseil d’approuver un
règlement en vue de la réalisation des travaux de construction du réseau
séparatif sur la voie Swans Sud en tant que travaux d’amélioration locale
requis et conformément à la répartition des coûts, comme il est exposé dans le
présent rapport.
There
are three (3) existing private properties abutting Swans Way South that remain
without access to the municpal sanitary sewer system (refer to Doument 1). 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:
Since
2003 there has been interest expressed in sewer servicing by some of the owners
of these properties. Prior to the fall
of 2009, the affected owners on Swans Way South were unable to achieve the
owner support noted above for consideration of sewer servicing. Late in 2009,
staff received the most recent request
for a sanitary sewer extension.
To
extend a sewer to the three remaining properties without sewer access, the
extension would also abut two other private properties along the route that
have received benefit of sewers in Swan's Way North (refer to Document 1 - one
property already has an established sewer connection and the other has been
subject to previous Local Improvement sewer charges). These two properties do not receive benefit
from the proposed sewer extension and
they are excluded from the current the 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 two excluded properties.
The sanitary sewer Local Improvement petition for Swans Way South 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 other two abutting private properties
(refer to Document 2).
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 04 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 26 January 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 Swans Way South consistent with the terms
identified in the certified petition.
DISCUSSION
The
three benefiting properties can be serviced by installing a local sanitary
sewer on Swans Way South with a connection to the existing sewer in Swans Way
(refer to Docuement 1). The work
consists of approximately 95 metres of sanitary sewer, plus the related road
reinstatement. Property owners are also
responsible for costs associated with the installation of service laterals
within the municipal right-of-way from the sanitary sewer to the property line.
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.
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 $150,000, 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 Water and Sewer Budget subject to
a successful pettion and Committee and Council passage of a by-law to undertake
the work (order number 905765).
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 $75,000 for the
mainline works and $12,000 for the portion of the service laterals in the road
allowance ($87,000 in total).
The
$75,000 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 edge, is in the range of $25,200 to $31,400.
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 two excluded
properties. The City's share of
the project is estimated at $63,000.
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 ten (10)
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 $600 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.
Since 2003 there have been expressions of interest for access to municipal sanitary sewer servicing by owners of properties along Swans Way South. The last significant attempt by owners for servicing via the Local Improvement process was in late 2005. While the petition process was not successful at that time, the circulation of the petition provided the owners with an introduction to the Local Improvement process.
In November 2009, City staff met with the owners of two of the three affected properties (the third owner was out of the country) and ward office staff. 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.
Individual property owner packages, including estimated costs specific to each property, were distributed to the owners of each of the three benefiting properties in December 2009. The formal Local Improvement petition was also provided to the owner acting as the lead petitioner in December 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.
The
authority for municipalities to undertake works as local improvements is
provided through Municipal Act 2001 as prescribed under Ontario Regulation
586/06. The Swans Way South 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
Funds in the amount of $150,000 have been identified in the 2010 Draft Capital Budget – Rate Supported Programs. Subject to Council approval of the 2010 Rate Budget and this report, a budget adjustment will be processed to reflect the new funding arrangement – the City’s share of $63,000 and the benefiting property owners’ share of $87,000. Should final construction costs exceed the pre-construction estimate of $150,000, the City would fund 100% of the additional costs.
The Operating Budget impact for the new sewer works is estimated at $600 annually. This includes maintenance, but does not include ultimate renewal and replacement costs
Document
1 - Swans Way South Local Improvement Area Plan
Document 2 - Petition Cover
Legal Services will finalize the by-law for undertaking the works as a local improvement. The by-law will be circulated to the Financial 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
Swans Way South Local Improvement Area
Plan
Figure
1 – Properties Subject to Cost Recovery for Public Sanitary Sewer
Infrastructure as a Local Improvement
Document 2
Petition Cover