Report to/Rapport au :

 

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

 

Ward 11 (Beacon Hill - Cyrville)

Ref N°: ACS2010-ISC-INF-0004

 

 

SUBJECT:

RESIDENTS' PETITION FOR THE INSTALLATION OF SANITARY SEWER INFRASTRUCTURE AS A LOCAL IMPROVEMENT IN SWANS WAY SOUTH

 

 

OBJET :

pétition des résidents en vue de l’installation d’un réseau séparatif à titre d’amélioration locale de la voie swans sud

 

 

REPORT RECOMMENDATION

 

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.

 

RECOMMANDATION DU RAPPORT

 

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.

 

 

BACKGROUND

 

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.

CONSULTATION

 

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.

 

 

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 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

 

 

FINANCIAL IMPLICATIONS

 

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

 

 

SUPPORTING DOCUMENTATION

 

Document 1 - Swans Way South 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 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