Report
to/Rapport au :
Comité
de l'urbanisme
and Council / et au Conseil
04 November 2011 / le 04 novembre 2011
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, Acting Manager/Gestionnaire
intérimaire, Development Review-Suburban Services/Examen des projets
d'aménagement-Services suburbains, Planning and Growth Management/Urbanisme et
Gestion de la croissance
(613)
580-2424, 15134 Derrick.Moodie@ottawa.ca
REPORT RECOMMENDATION
That Planning Committee recommend Council approve entering into a Front-Ending Agreement with Findlay Creek Properties Limited (or related company), for the design and construction of the Leitrim Stormwater Management Pond 2 and into subdivision agreements for repayment of storm sewer oversizing, total reimbursement not to exceed $6,370,796 plus applicable taxes and indexing, as outlined in this report based upon the principles set forth in Documents 1 and 2.
RECOMMANDATION DU RAPPORT
Que le
Comité de l’urbanisme recommande au Conseil d’approuver une
entente initiale avec la société Findlay Creek Properties Limited (ou une
société affiliée) pour la conception et la construction du bassin no 2
de gestion des eaux pluviales de Leitrim, ainsi que des ententes de lotissement pour le
paiement, d’un montant n’excédant pas 6 370 796 , taxes et indice en sus, des coûts
de surdimensionnement des égouts pluviaux, comme le précise le présent rapport, conformément
aux principes énoncés dans les documents 1 et 2.
BACKGROUND
The Leitrim Community is located in the
area bounded by Leitrim Road to the north, Albion Road to the west, and the
present urban boundary to the east of and along Bank Street and north of Rideau
Road. In 2005, the Leitrim Community
Design Plan (CDP) was approved by Council, outlining the direction for
development of the vacant lands in the area.
Stormwater Management Facility Pond 1 was previously constructed to
accommodate development proceeding in the southern, western and eastern
portions of the CDP. Findlay Creek Properties Limited (or related
company) now wishes to proceed with the
development of their land holdings immediately south of Leitrim Road which will
necessitate the construction of Pond 2. Construction of Pond 2 will also serve future
development of the Industrial Lands in the northwest corner of the CDP.
DISCUSSION
The
estimated cost to acquire land, design and construct Leitrim Stormwater
Management Facility Pond 2 is $5,628,835.
Findlay Creek Properties
Limited (or related company) is prepared
to front-end the total cost of the design and construction and would be paid
back based on the principles set out in Document 1 and pursuant to the
Council-approved Front-Ending policy in Document 2.
Under
the proposed Front-Ending Agreement, Findlay Creek Properties Limited (or related company) would be initially responsible for the cost of the design
and construction of Pond 2. Such design and construction would have to be done
in accordance with City and other regulatory standards. The construction of the
pond would be subject to inspection by the City and Findlay Creek Properties Limited (or
related company) will be required to
ensure that any deficiencies are remedied.
Following
completion of Pond 2, Findlay
Creek Properties Limited (or related company) would be reimbursed quarterly on a pro-rata basis from
the stormwater development charges imposed by By-law 2009-217 collected from
the benefiting area for Pond 2. The amount outstanding to Findlay Creek Properties Limited (or
related company) would be indexed at the
same rate as the stormwater development charge payable under the by-law. Should the cost of the pond exceed the
development charges ultimately collected from the benefiting area, the extra
cost would be borne by Findlay
Creek Properties Limited (or related company).
Together
with the pond, Findlay Creek
Properties Limited (or related company) will also be constructing storm sewers, which will be
oversized to accommodate development of lands other than those being provided
for development at this time. The stormwater Development Charge By-laws,
including By-law 2009-217, each contain a Schedule “D” which provides for
payments for oversizing of storm sewers.
Recomendation
Summary
This report seeks
approval for the following:
·
The City
to enter into a Front-Ending Agreement with Findlay Creek Properties Limited
(or related company) for the design and construction of the Leitrim Stormwater
Management Pond 2, based upon the principles set forth in Document 1 and the
Council Approved Front-Ending Policy in Document 2 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 and the City
Solicitor;
·
The
expenditure of $5,628,835 plus applicable taxes and indexing for the design and
construction, and land costs of Pond 2 from development charges collected
pursuant to By-law 2009-217 be approved subject to the execution of the Front‑Ending
Agreement;
·
The City
to enter into subdivision agreements which provide for the repayment of storm
sewer oversizing set at $741,961 plus applicable taxes in accordance with the
principles set forth in Document 2;
·
The City
to enter into subdivision agreements, which provide for the remuneration of
land costs associated with Pond 2; and
·
The
establishment a new internal order in the amount of $6,370,796 plus applicable
taxes and indexing.
RURAL IMPLICATIONS
N/A
CONSULTATION
Findlay Creek Properties Limited (or related company) is the main benefitting owner of the tributary area of Pond 2 and have agreed to front-end the works in accordance with the principles set forth in Documents 1 and 2.
COMMENTS BY THE WARD COUNCILLOR
Given
that there are no issues with the ponds in the Leitrim area, Councillor
Desroches is supportive of the agreement. However, any lessons learned from the
Riverside South ponds should be factored in future pond designs.
LEGAL IMPLICATIONS:
There are no legal implications associated with this report.
RISK MANAGEMENT IMPLICATIONS
There are no risk implications to the City associated with this report.
FINANCIAL IMPLICATIONS
The total estimated costs to be reimbursed to
the Front Enders are summarized in the following table:
|
Development Charge Item |
Development Charge Up-Set Limit |
Criteria for Repayment |
|
Design, Construction, and Land of Leitrim
Pond 2 |
$5,628,835 Plus applicable taxes and indexing. |
Repayment based on actual value of pond to an
upset limit of $5,628,835. (Tablelands based on land appraisal) |
|
Trunk Storm Sewer Over-sizing for sewers,
which are tributary to Pond 3. |
$741,961 Plus applicable taxes. |
Upset limit based on estimated linear meters
of DC over-sizing constructed pursuant to DC background study at set rate per
linear meter and Front Ending Policy |
|
Total |
$6,370,796 Plus applicable
taxes and indexing. |
|
Subject to Council approval, in the year that
the requirements for repayment are fulfilled (estimated to be 2013), a new
internal order will be established in the amount of $6,370,796 plus applicable
taxes and indexing, to be funded from Stormwater Development Charges collected
from Area S-2, By-Law 2009-217. The Front-Enders will be paid back pursuant to
the principles set out in Document 1 and the Council Approved Front-Ending
Policy as noted in Document 2. Reimbursements to the Front Enders will be made
on a quarterly basis (as the City collects the Stormwater development charges
in the area) following the fulfillment of the requirements for repayment
identified in Item 13 of Document 2.
Should other Development Charge storm related
works within the same Area Specific Stormwater Development Charge Area be
constructed during the life of this Front-Ending Agreement, as identified in
By-Law 2009-217, within the stormwater collection area identified in Document
3, the Front-Enders acknowledge that they will share on an equal basis with
other stormwater drainage projects in the distribution of Development Charge
revenue.
The annual operating impact is estimated at $15,000
beginning in 2013.
ACCESSIBILITY IMPACT
There are no impacts to accessibility related to this undertaking.
TECHNOLOGY IMPLICATIONS
N/A
CITY STRATEGIC PLAN
Ensure that the City infrastructure required for new growth is built or improved as needed to serve growth.
APPLICATION PROCESS TIMELINE STATUS
N/A
SUPPORTING DOCUMENTATION
Document 1 Principles of Front-Ending Agreement
Document 2 Council Approved Front-Ending Policy
Document 3 Stormwater Collection Area Map Gloucester (Area S-2)
DISPOSITION
The final form of the agreement will be prepared by Legal Services in consultation with the Planning and Growth Management Department.
1. The Front-Ender shall be required to post a letter of credit or cash deposit equal to the value of the design and construction of Pond 2 based upon a construction contract between the Owner and a construction company.
2. Contract for works to be awarded by Findlay Creek Properties Limited (or related company) subject to prior review by the City.
3. Construction to be completed to City and other regulatory standards.
4. Stormwater Facility will only be assumed by the City when the facility meets the requirements of all approval agencies and has been completed to City standards.
5. Cost of the facility initially borne by Findlay Creek Properties Limited (or related company).
6. Findlay Creek Properties Limited (or related company) to be reimbursed quarterly from stormwater development charges collected within the benefiting area.
7. The cost of the design, construction, and remuneration of land for the Leitrim Pond 2 is set at an upset limit of $5,628,835. Should the cost exceed the upset limits, the additional cost shall be borne by the Front-Ender, and the City shall not be obligated to compensate the Front-ender for additional costs.
8. Amount outstanding to Findlay Creek Properties Limited (or related company) to be indexed at the same rate as the development charges.
9. Should other Development Charge storm related works be constructed during the life of this Front Ending agreement as identified in By-Law 2009-217 (within the stormwater collection area identified in Document 3), the Front-Ender acknowledges that they will share with other stormwater drainage projects in the distribution of Development Charge revenue collected.
10. Land remuneration is subject to a land appraisal. Land compensation shall be for tableland only and shall be net of any constraint lands.
JUNE 25, 2009 COUNCIL APPROVED FRONT-ENDING POLICY DOCUMENT 2
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% 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 ten 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 ten-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.
STORMWATER
COLLECTION
AREA MAP GLOUCESTER (AREA S-2) DOCUMENT 3
