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HomeMy WebLinkAboutCS 07-11 Report To Executive Committee PICKERING Report Number: CS 07-11 Date: January 10, 2011 170 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Duffin Heights Neighbourhood - Stormwater Management Facility #4 and Related Infrastructure - Urbanization of Brock Road and Third Concession Road Recommendations: 1. That Report CS 07-11 of the Director, Corporate Services & Treasurer be received; 2. That approval be given to the following 2011 Capital Budget projects: a) Urbanization of the Third Concession Road (BR-1), east of Brock Road including sidewalks, multi-use trails, street lights and lane widening at an estimated cost of $1,076,525; b) Urbanization of Brock Road (DH715) on both sides from the Third Concession Road to the CPR underpass including sidewalks, multi-use trails, streetlights and concrete poles at an estimated cost of $1,069,500; 3. That, notwithstanding the Council approved Purchasing Policy, the Regional Municipality of Durham (Region) be authorized, on behalf of the City, to undertake the calling and awarding of contracts for the following projects: a) Stormwater Management Facility #4 and related storm sewer construction on lands north of Third Concession Road as provided for in the approved 2009 Capital Budget; b) Urbanization of the Third Concession Road (BR-1), east of Brock Road including sidewalks, multi-use trails, street lights and lane widening as part of the 2011 Capital Budget; c) Urbanization of Brock Road (DH-15) on both sides from the Third Concession Road to the CPR underpass including sidewalks, multi-use trails, street lights and concrete poles as part of the 2011 Capital Budget; 4. That the appropriate officials of the City of Pickering be authorized to effect the acquisition of the lands required for the construction of SWM #4; Report CS 07-11 January 10, 2011 Subject: : Duffin Heights Neighbourhood Page 2 5. That the Council authorize the Director, Corporate Services & Treasurer to finance the City's share for land acquisition associated with Stormwater Management Facility (SWM #4) and for works,to be included in the Region contract for SWM #4 and related storm sewer construction on lands north of Third Concession Road at a total estimated cost of $2,000,000 as follows: a) that the sum of $2,000,000 be financed by the issue of debentures by the Regional Municipality of Durham over a period not to exceed ten years with the sum of $800,000 to be recovered from non-participating landowners; 6. That the Council authorize the Director, Corporate Services & Treasurer to finance the City's share for works to be included in the Region contract for the urbanization of Third Concession Road (BR-1), east of Brock Road at an estimated cost of $1,076,525 as follows: a) that the sum of $806,000 be.financed by the issue of debentures by the Regional Municipality of Durham over a period not to exceed fifteen years; b) that the sum of $269,131 be funded from the Development Charges Reserve Fund; c) that the sum of $1,394 be funded from current funds; 7. That the Council authorize the Director, Corporate Services & Treasurer to finance the City's share for works to be included in the Region contract for the urbanization of Brock Road (DH-15) on both sides from the Third Concession Road to the CPR underpass at an estimated cost of $1,069,500 as follows: a) that the sum of $534,000 be financed by the issue of debentures by the 'Regional Municipality of Durham over a period not to exceed fifteen years; b) that the sum of $534,750 be funded from the Development Charges Reserve Fund; c) that the sum of $750 be funded from current funds; 8. That a six-month repayment charge in the amount of approximately $196,000 be included in the annual Current Budget for the City of Pickering in 2011, and any financing cost be paid out of the Current Budget; 9. That the annual repayment charges in the amount of approximately $392,000 be included in the annual Current Budget for the City of Pickering commencing in 2012, continuing thereafter until the debentures are repaid, and any financing cost be paid out of the Current Budget; ~ Report CS 07-11 January 10, 2011 Subject: Duffin Heights Neighbourhood Page 3 172 10. That the draft by-laws attached to this report be enacted; 11. That the Director, Corporate Services & Treasurer has certified that this loan and the repayment thereof falls within the City's approved debt and financial obligations annual repayment limit for debt and other financial obligations for 2010 as approved by the Province for municipalities in Ontario and therefore, the Ontario Municipal Board approval is not required; 12. That the Clerk forward a copy of Report CS 07-11 to the Region of Durham and the Duffin Heights Landowners Group and the Trustee for information; and, 13. That the appropriate officials of the City of Pickering be authorized to take any necessary actions to give effect thereto. Executive Summary: In 2008, Council endorsed in principle the City entering into a cost sharing agreement with the Duffin Heights Landowners Group (DHLG) in regards to front-funding a portion of a stormwater management facility (SWM #4) and related infrastructure costs required to accommodate the urbanization of Brock Road and the development of certain lands within Duffin Heights, including City owned lands. In 2009, as part of the annual Capital Budget, Council approved the construction of Storm Water Management Pond #4 including Brock Road storm sewer oversizing at an estimated cost of $2,000,000. Of this amount, it is estimated that approximately $800,000. will be recovered from benefitting landowners as they ready their lands for development in the future. The urbanization of the Third Concession Road, east of Brock Road and Brock Road on both sides from the Third Concession Road to the CPR underpass, are two projects that will be included in the 2011 Capital Budget but require approval now in order to be able to proceed in conjunction with the Region of Durham's work on Brock Road. With Council's authorization in July 2010, the Mayor and Clerk executed the Cost Sharing Agreement with the DHLG respecting the provision of infrastructure in Duffin Heights. The Sernas Group (Sernas), on behalf of the Duffin Heights Landowner Group, has been coordinating the design process for SWM #4 and the related storm sewer system. An agreement between the City and DHLG would have been necessary in order to construct SWM #4. Subsequent meetings and discussions with the Region and Sernas have resulted in an alternative construction proposal from the Region which includes the construction of SWM #4 within the tender by the Region for the reconstruction and widening of Brock Road and the Third Concession Road. Report CS 07-11 January 10, 2011 Subject: Duffin Heights Neighbourhood Page 4 173 City staff concurs with this approach as it avoids potential timing conflicts associated with the construction of both SWM #4 and the Third Concession Road and ensures that installation of services are coordinated such that Brock Road can be urbanized. Further, the contracting of all required works by one firm will improve construction efficiency. Financial Implications: The City, for its share of the required works, has recommended $1.075 million for sidewalks, multi-use trails, street lights and lane widening on Third Concession Road, east of Brock Road and $1.07 million for sidewalks, multi-use trails, and street lights on Brock Road on both sides from the Third Concession Road to the CPR underpass as part of the City's 2011 Capital proposed Budget. The City's share of SWM #4 and infrastructure costs, specifically with regards to the over-sizing of the storm sewer on Brock Road and land acquisition was approved in the 2009 budget in the amount of $2 million. The net cost to the City is estimated at $1.2 million, after recovery from non participating landowners. The City's share of the cost will be recovered from the eventual sale of benefitting City owned lands in Duffin Heights. As the recovery of costs may take years, debt financing is required in order to complete the projects. Source of Funds Capital Budget - Stormwater Management and External Subdivision Works Item Project Code Source of Budget Funds/ Funds Approved Financing Required 2009 Budget Stormwater 5410.0904.6181 Debt 10 Year $1,200,000 $2,000,000 Management Facility #4 Recovery from 800,000 0 Duffin Heights Pond Non- participating landowners Total 2009 Budget $2,000,000 $2,000,000 2011 Budget Urbanization of the 5999.1198.6999 Development 269,131 $269,131 Third Concession Pre Budget Charges Road (BR-1), east of Approval Reserve Fund Brock Road Debt 15 Year 807,394 806,000 Property 1,394 Total 2011 $1,076,525 $1,076,525 Budget Report CS 07-11 January 10, 2011 Subject: Duffin Heights Neighbourhood Page 5 174 2011 Budget Urbanization of 5999.1198:6999 Development 534,750 $534,750 Brock Road (DH-15) Pre Budget Charges from the Approval Reserve Fund Third Concession Road to the CPR Debt 15 Year 534,750 $534,000 underpass Property Taxes 750 Total 2011 Budget $1,069,500 $1,069,500 Grand Total $4,146,025 $4,146,025 While it is anticipated that the City's share of these costs will be recovered from the eventual sale of lands in Duffin Heights, this could be several years away. In addition, there is no certainty regarding the timing of payments from the non participating (in the Cost Sharing Agreement) but eventually benefitting landowners. As a result, debt in the form of debentures, or possibly internal loans, must be provided for in case required. Also, whichever form of borrowing is used, a guaranteed method of repayment through the annual budget and the property tax base must be provided for. Sustainability Implications: Approval of the Recommendations in this report will assist in meeting the urban' design and development objectives endorsed by Council for the Duffin Heights Neighbourhood. 1.0 Background: 1.1 In 2008, Council endorsed the City entering into a cost sharing agreement for required infrastructure to service Duffin Heights, and front-funding the SWM #4 and related infrastructure required to accommodate the Brock Road reconstruction In October 2008, Council endorsed in principle the City entering into the Duffin Heights Cost Sharing Agreement (CSA) and for staff to report back seeking authority to front-fund the costs of Storm. Water Management Facility #4 (SWM #4) and related infrastructure. The Region of Durham required SWM #4 and related infrastructure to be in place prior to the reconstruction and widening of Brock Road to four lanes. Subsequently, Council in the 2009 budget, approved funds in the amount of $2. million for the design and construction of SWM #4 and related land acquisition and infrastructure. In the CSA, the City's share as a participating landowner amounts to $1.2m. The total front funding contribution for the share representing the non-participating landowners is $800,000. The City's total cost, including front funding a portion of the non-participating landowners for SWM #4 is estimated at $2 million. Report CS 07-11 January 10, 2011 Subject: Duffin Heights Neighbourhood Page 6 17~ 1.2 In July 2010, the Mayor and Clerk were authorized by Council to enter into the Duffin Heights Cost Sharing Agreement With Council's authorization, the Mayor and City Clerk signed the CSA with the DHLG respecting the front funding of infrastructure required in Duffin Heights. The Duffin Heights CSA is in a form by which up-front infrastructure costs borne by participating landowners are apportioned and equitably recovered from benefitting landowners when they develop their lands. The CSA was specifically drafted to ensure that the City is a Participating Owner only for the purpose of sharing in the costs related to the construction of SWM #4 and related infrastructure required. 1.3 Subsequently, City staff met with Durham Region and Sernas to discuss the funding and timing of SWM #4 Durham Regional Works staff requested the City, as partof the reconstruction and widening of Brock Road from the Third Concession Road to south of the CPR underpass, to commit appropriate funds for the City's share of the urbanization of Brock Road. Regional staff has identified the Brock Road reconstruction as a priority for the upcoming 2011 Road Program. These works are currently shown in the Region's 2010 Capital Road Program and Four Year Forecast as being constructed in 2011. City staff responded that sufficient funds have been recommended in the 2011 budget for sidewalks, multi-use trails, street lights and concrete poles on Brock Road, and the urbanization of Third Concession Road including sidewalks, multi- use trails, street lights and lane widening from two lanes to four lanes. It should be noted that the City's works associated with the urbanization of Brock Road and the Third Concession Road were both initially in the 2010 staff recommended Capital Budget as a development charge funded project. However, when the Region advised that it would not be moving forward in 2010 with the reconstruction of Brock Road through Duffin Heights, the City deferred funding of both projects to the 2011 Capital Budget. As indicated above, the City's portion of the SWM #4 and related infrastructure was previously approved in 2009. On November 16, 2010, City staff met with the Region and Sernas to discuss the funding and timing of SWM #4. At this meeting, the Region proposed to include the construction of SWM #4 as part of the tender for the reconstruction and widening of Brock Road. The Brock Road works would also include the urbanization of Third Concession Road to reduce the grade, improve sight lines, widen the travel surface and install sidewalks/multi-use trails. Report CS 07-11 January 10, 2011 Subject: Duffin Heights Neighbourhood Page 7 176 2.0 Discussion: Sernas, on behalf of the DHLG has been coordinating the design process for SWM #4 and the related storm sewer system. The DHLG has requested the transfer of land required for SWM #4 from Hydro One through the Ontario Realty Corporation to the City. The cost of purchase of these lands will be cost shared through the cost sharing agreement. Given that the Region requires SWM #4 to be operational prior to urbanizing Brock Road; the Region has recommended that the construction of this facility be incorporated into the tender for the Brock Road works rather than a separate contract. City staff concurs with this approach as it avoids potential conflicts associated with the construction of SWM #4 and the reconstruction of the Third Concession Road, ensures that services will be coordinated prior to installation, and improves efficiencies with one firm contracted to perform the required works. Sernas would continue to finalize the design of SWM #4 to the City and TRCA's satisfaction and procure all necessary approvals and permits. It is therefore recommended that the Director, Corporate Services & Treasurer be authorized to pay to the Region the City's share of the construction costs of SWM #4 and related infrastructure and the costs of the other two projects included in this report. The land will be acquired from Hydro One. With Council's authorization to pay the City's share of the construction for SWM #4 and. related infrastructure and the costs of the other two projects to the Region, the normal practice of issuing a Purchase Order for the actual tendered amounts will be followed. Attachments: 1. By-law to authorize the Stormwater Management Facility #4 and related storm . water sewer construction and land acquisition on lands north of Third Concession Road in the City of Pickering and the issuance of debentures therefor in the amount of $2,000,000. 2. By-law to authorize the Urbanization of Third Concession Road (BR-1), east of Brock Road in the City of Pickering and the issuance of debentures therefor in the amount of $806,000. 3. By-law to authorize the Urbanization of Brock Road (DH-15) on both sides from the Third Concession Road to the CPR underpass in the City of Pickering and the issuance of debentures therefor in the amount of $534,000. Report CS 07-11 January 10, 2011 Subject: Duffin Heights Neighbourhood Page 8 Prepared By: Approved / Endorsed By: Grant McGregor, M 61P, RPP Gillis A. Paterson Principal Planner - Policy Director, Corporate Services & Treasurer Richard Holborn, P.Eng Neil Carrol Division Head, Engineering Services Director, Planning & Development Caryn Kong, CGA Everett Buntsma Senior Financial Analyst-Capital & Director, Operations & Emergency Services Debt Management Robert Starr Manager, Development Control Copy: Chief Administrative Officer Recommended for the consideration of Pickerin City Council 2-4, Zo 10 Tony" fevedel, P.Eng. Chief Administrative Officer ATTACHMENT#_L_TO REPORT#5,o`7-- I 1 The Corporation of the City of Pickering 178 By-law No. Being a by-law to authorize the Stormwater Management Facility #4 and related storm sewer construction, and land acquisition on lands north of Third Concession Road in the City of Pickering and the issuance of debentures therefor in the amount of $2,000,000. Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001,.as amended, provides that a lower- tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City wishes to proceed with the Stormwater Management Facility #4 and related storm sewer construction, and land acquisition on lands north of Third Concession Road; and, Whereas before the Council of the City authorized the Stormwater Management Facility #4 and related storm sewer construction, and land acquisition on lands north of Third Concession Road project, the Council of the City had the Treasurer, and land acquisition update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and, therefore, Ontario Municipal Board approval is not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report CS 07-11 on the date hereof and authorized the Regional Municipality of Durham to undertake the calling and awarding of contract for the Stormwater Management Facility #4 and related storm sewer construction on lands north of Third Concession Road project. By- law No. Page V/ Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the construction project referred to ~as "Stormwater Management Facility #4 and related storm sewer construction, and land acquisition on lands north of Third Concession Road"; 2. That the estimated costs of the project in the amount of $2,000,000 be financed as follows: a) That the sum of $2,000,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten (10) years with the sum of $800,000 be recovered from non-participating landowners; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2011 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 17th day of January, 2011. David Ryan, Mayor Debbie Shields, City Clerk ATTACHMENT# A TO REPORT #.LLO__~ -/I 180 The Corporation of the City of Pickering By-law No. Being a by-law to authorize the Urbanization of Third Concession Road (BR-1), east of Brock Road in the City of Pickering and the issuance of debentures therefor in the amount of $806,000. Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower- tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City wishes to proceed with the Urbanization.of Third Concession Road (Br-1), east of Brock Road project; and, Whereas before the Council of the City authorized the Urbanization of Third Concession Road (BR-1), east of Brock Road project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and, therefore, Ontario Municipal Board approval is not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report CS 07-11 on the date hereof and authorized the Regional Municipality of Durham to undertake the calling and awarding of contract for the Urbanization of Third Concession Road (BR-1), east of Brock Road project. i 181 By- law No. Page Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1.. That the City proceed with the construction project referred to as "Urbanization of Third Concession Road (BR-1), east of Brock Road"; 2. That the estimated costs of the project in the amount of $1,076,525 be financed as follows: a) That the sum of $806,000'be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed fifteen (15) years; b) That the sum of $269,131 be funded from the Development Charges Reserve Funds; c) That the remaining sum of $1,394 be funded from Current Funds, 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2011 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 17th day of January,.2011. David Ryan, Mayor Debbie Shields, City Clerk ATTACHM ENT # .PTO REPORT #_LS 07 - 182 The Corporation of the City of Pickering By-law No. Being a by-law to authorize the Urbanization of Brock Road (DH-15) on both sides from the Third Concession Road to the CPR underpass in the City of Pickering and the issuance of debentures therefor in the amount of $534,000. Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower- tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City wishes to proceed with the project; and, Whereas before the Council of the City authorized the Urbanization of Brock Road (DH-15) both sides from the Third Concession Road to the CPR underpass project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and, therefore, Ontario Municipal Board approval is not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report CS 07-11 on the date hereof and authorized the Regional Municipality of Durham to undertake the calling and awarding of contract for the Urbanization of Brock Road (DH-15) both sides from the Third Concession Road to the CPR underpass project. 183 By-law No. Page Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the construction project referred to as "Urbanization of Brock Road (DH-15) on both sides from the Third Concession Road to the CPR underpass"; 2. That the estimated costs of the project in the amount of $1,069,500 be financed as follows: a) That the sum of $534,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed fifteen (15) years; b) That the sum of $534,750 be funded from the Development Charges Reserve Funds; c) That the remaining sum of $750 be funded from Current Funds 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2011 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 17th day of January, 2011. David Ryan, Mayor Debbie Shields, City Clerk