Report to: General Committee                                                  Date of Meeting: April 16, 2007

 

 

SUBJECT:                          Milmar Court Sanitary Sewer System - Fees By-law

PREPARED BY:               Paul Wealleans, Director, Taxation

                                            Jeff  Flewelling, Manager, Capital Right-of-way, Asset

                                            Management

 

RECOMMENDATIONS:

THAT the report entitled “Milmar Court Sanitary Sewer System – Fees By-law” be received;

 

AND THAT Council enact a Fees By-law pursuant to Section 391 of the Municipal Act 2001;

 

AND THAT the Finance Department be authorized to collect the total project costs for the Milmar Court Sanitary Sewer System from the six property owners of Milmar Court (as set out in the Fees By-law) in the amount of $27,969.53 per lot;

 

AND THAT the costs per lot be paid as either an interest free lump sum payment or annually up to a maximum of  15 years accruing interest at the same rate as the current Region of York 15 Year Debenture Rate, 4.6% calculated annually in advance;

 

AND THAT any unpaid amounts be added to the tax account of each property owner;

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:  

As the sanitary sewer construction project is complete on Milmar Court, it is necessary for Council to adopt a fees bylaw to recover the costs from the six property owners. The total cost for each owner is $27,969.53 and can be paid off either as a one lump sum payment or annually up to a maximum of 15 years (with interest) and added to the tax account of each property owner.     

1. Purpose                2. Background         3. Discussion             4. Financial         5. Environmental

 

6. Accessibility       7. Engage 21st             8. Affected Units       9. Attachment(s)

 

FINANCIAL CONSIDERATIONS:

Based on final actual costs, the cost per lot for the Milmar Court Sanitary Sewer System is $27,969.53. The residents have the option of paying the full amount either as one interest free lump sum payment or annually up to a maximum 15 years with interest payable at the  same rate as the 15 Year Region of York Debenture Interest Rate.  The current rate is 4.6 %. Payment of any outstanding balance plus accrued interest would be permitted at any time. All costs recovered from the property owners are to be credited back to the Waterworks Reserve.

 

PURPOSE:

The purpose of this report is to seek Council’s approval of the Fees By-law for the recovery of the costs of the Milmar Court Sanitary System from the property owners of the Milmar Court.

 

 

BACKGROUND:

On June 13, 2006, Council authorized staff to proceed with the construction of the Milmar Court Sanitary Sewer System and recover the costs in accordance with a fees by-law enacted pursuant to Section 391 of the Municipal Act. Council directed that the total project cost, including the costs for construction, engineering, contract administration, easements and any other project related costs, was to be equally shared by the 6 property owners on Milmar Court.

 

Safire Infrastructure Inc. was awarded the contract in June 2006. The work is now complete.

 

OPTIONS/ DISCUSSION:

 

1. Fees By-law

According to Section 391 of the Municipal Act, Council is required to enact a fees by-law to recover the front-ended costs from the benefiting property owners. A fees by-law may provide for interest charges and other penalties for fees that are due and unpaid. Fees may be added to the tax roll and collected in the same manner as taxes.

 

The Fees By-law may provide the residents with the option of paying the full amount either as one interest free lump sum payment or annually up to a maximum 15 years with interest payable at the same rate as the current 15 Year Region of York Debenture Interest Rate. The current rate is 4.6 %. Payment in full of the outstanding balance plus accrued interest would be permitted at anytime.

 

2. Total Project Cost

A comparison of the estimated total project cost at the time of contract award in 2006 and the actual project cost in March 2007 is shown below:

TOTAL PROJECT COST

 

 

Milmar Court Sanitary Sewer System

 

 

 

 

 

 

Time of Tender Award Report on June 12, 2006

Total project cost in March, 2007

Construction

$136,400.00

$127,190.92

Construction (Contingency Allowance)

$13,640.00

$0.00

Engineering Fees (Design)

$15,800.00

$15,800.00

Engineering Fees (Site Supervision/Contract Administration)

$15,000.00

$15,000.00

Engineering Fees (Material & Compaction Testings)

$7,500.00

$4,825.00

Administration Cost (Tendering, Advertising, Notices, etc)

$1,000.00

$113.40

Administration Cost (Town Staff)*

$2,660.00

$4,887.88

Total Project Costs

$192,000.00

$167,817.20

Total Project Costs per lot

$32,000.00

$27,969.53

* Administration Cost based on 3% of the total project cost

 

 

 

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

 

ACCESSIBILITY CONSIDERATIONS:

Not applicable.

 

ENGAGE 21st CONSIDERATIONS:

Not applicable.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Legal Services

Asset Management

 

 

 

 

 

RECOMMENDED BY:

 

 

________________________                        ________________________

Barb Cribbett                                                   Andy Taylor

Treasurer                                                         Commissioner, Corporate Services

 

 

 ______________________                           ________________________

Steve Andrews                                                 Jim Sales, Commissioner

Director, Asset Management                             Community and Fire Services

 

 

_____________________                             

Catherine Conrad

Town Solicitor

 

 

ATTACHMENTS:

 

Appendix A: Draft Bylaw – Milmar Court Sanitary Sewer System Fees Bylaw

 

 

 

Q:\Finance\SHARED\2007 General Committee Finance\0704 Milmar Crt Sanitary Sewer System Fees Bylaw.doc

 

 

 

 

 

Appendix A: Draft Bylaw – Milmar Court Sanitary Sewer System Fees Bylaw

 

 

BY- LAW 2007 –

 

Being a by-law to levy the actual cost of construction of the sanitary sewer on Milmar Court

 

 

WHEREAS paragraph 391(1)(a) of the Municipal Act, 2001 provides that a municipality may pass a by-law for imposing fees or charges or activities provided by or done on behalf of it;

 

AND WHEREAS Council of The Corporation of the Town of Markham on June 12, 2006 authorized a by-law to levy the actual cost of construction of a sanitary sewer system on Milmar Court;

 

NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF MARKHAM ENACTS AS FOLLOWS:

 

1.         Milmar Court is comprised of those properties on Milmar Court as set out in Schedule "A" hereto.  These properties shall hereinafter be referred to collectively as "Milmar Court".

 

2.         The actual cost of construction of the sanitary sewer system installed on Milmar Court is $167,817.20 (the “Actual Cost”).

 

3.         The Actual Cost allocated equally to each lot on Milmar Court (the “Lot Cost”) shall be $27,969.53.

 

4.         Each property owner on Milmar Court shall pay the Lot Cost by making annual payments, comprised of principal and interest, as set out in Schedule "B" attached hereto.  The payments shall be made in instalments as set by the final annual tax levy by-law until the Lot Cost is paid in full.

 

5.         Interest shall be calculated and paid by each property owner on the outstanding principal amount at the rate of 4.6% annually.

 

6.         Notwithstanding section 4 above, the outstanding balance, plus accrued interest up to the date of payment, may be paid at any time prior to December 31, 2021.

 

7.         There shall be no interest payable if the Lot Cost is paid in full by July 31, 2007.

 

8.         The Schedules attached hereto shall be and form part of this By-law.        

 

 

READ A FIRST, SECOND AND THIRD TIME AND PASSED THIS                      DAY OF                                  , 2007.

 

 

 

 

__________________________                    __________________________

SHEILA BIRRELL, CLERK                           FRANK SCARPITTI, MAYOR

 

 

SCHEDULE “A”

 

TO BY-LAW 2007-

 

Address

Lot Cost

6 Milmar Court

$27,969.53

7 Milmar Court

$27,969.53

9 Milmar Court

$27,969.53

10 Milmar Court

$27,969.53

11 Milmar Court

$27,969.53

15 Milmar Court

$27,969.53

TOTAL

$167,817.20

 

 

 

 

SCHEDULE “B”

TO BY-LAW 2007- 

 

Address: Milmar Court

Roll Number:

Repayment: Maximum of 15 years at 4.6%

Cost per Lot: $27,969.53

Interest: 4.6%

 

 

Year

Princpal

Interest

Payment

Total

2007

 $27,969.53

 $  1,286.60

 $  2,622.29

 $26,633.84

2008

 $26,633.84

 $  1,225.16

 $  2,622.29

 $25,236.70

2009

 $25,236.70

 $  1,160.89

 $  2,622.29

 $23,775.30

2010

 $23,775.30

 $  1,093.66

 $  2,622.29

 $22,246.68

2011

 $22,246.68

 $  1,023.35

 $  2,622.29

 $20,647.73

2012

 $20,647.73

 $     949.80

 $  2,622.29

 $18,975.24

2013

 $18,975.24

 $     872.86

 $  2,622.29

 $17,225.81

2014

 $17,225.81

 $     792.39

 $  2,622.29

 $15,395.91

2015

 $15,395.91

 $     708.21

 $  2,622.29

 $13,481.83

2016

 $13,481.83

 $     620.16

 $  2,622.29

 $11,479.70

2017

 $11,479.70

 $     528.07

 $  2,622.29

 $  9,385.48

2018

 $  9,385.48

 $     431.73

 $  2,622.29

 $  7,194.92

2019

 $  7,194.92

 $     330.97

 $  2,622.29

 $  4,903.60

2020

 $  4,903.60

 $     225.57

 $  2,622.29

 $  2,506.88

2021

 $  2,506.88

 $     115.32

 $  2,622.29

-$        0.10

Total

 

 $11,364.72

 $39,334.35