Report to: General Committee Report Date: September 14, 2009

SUBJECT: Box Grove Water Connection Reimbursement

PREPARED BY: Kevin Ross, Ext. 2126

RECOMMENDATION:

1) THAT staff be authorized to reimburse the 27 Box Grove residents on 9^th Line, north of 14^th Avenue who are or will be connected to the water service provided by Minto, whether or not the current owner paid directly for the connection fees;

2) THAT staff be authorized to transfer an additional $2,500 from the Box Grove Community Fund (Capital Budget Account 620 101 5699 6805 – formerly 80 6900 6805 005), for a total of $46,500, to cover the reimbursement of the water connection cost for the 27 identified lots;

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

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

5. Others (HR, Strategic, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of the report is to confirm the reimbursement process for the property owners on 9^th Line, north of 14^th Avenue (Box Grove) for the cost of the water connection based on the methodologies outlined.

BACKGROUND:

On May 20, 2008 at Development Services Committee, Council passed the following resolution:

“That approximately $44,000 from the Box Grove Community Fund (Capital Budget account 80 6900 6805 005 in the amount of $401,858), be applied towards reimbursing the property owners on 9th Line, north of 14th Avenue, for their out of pocket expenditure for water connection”

The resolution (see Appendix A) passed by Council can be interpreted as being applicable only to those current owners who paid directly for their connection (ie the owner who paid is still the owner of the lot). Staff now wishes to confirm the approach to be taken in reimbursing all current owners of the properties who benefit from the water connection and have paid either directly or indirectly for the water connection fees. The approach to be employed by staff will result in all current property owners who presently benefit from the connection being reimbursed their water connection fee, with future connections being paid for through the capital budget account 620 101 5699 6805 funded by the Box Grove Community Fund.

Staff has completed the background research and the information is outlined below:

• Minto constructed the watermain along 9^th Line, north of 14^th Avenue, and will be reimbursed the amount of the water connection fees, once the Town receives these servicing fees from the residents who are eligible to connect ;
• 18 lots (residents) have already benefited from this arrangement while 9 lots remain unconnected;
• Waterworks Department is responsible for collecting the appropriate fees when the residents make a request for a water connection.

OPTIONS/ DISCUSSION:

The table below outlines a number of situations related to the 27 lots (residents) and staff’s proposed actions to address each situation:

#	Situation	No. of Lots	Staff Actions
A.	Same owner lives at the address / paid the connection fee	7	Staff in the process of reimbursing the owners
B.	Same owner lives at the address / contractor paid the fee	3	Recommend reimbursement to owner
C.	New owner lives at the address / contractor paid the fee	1	Recommend reimbursement to new owner
D.	New owner lives at the address / previous owner paid the fee	7	Recommend reimbursement to new owner
E.	Property is not connected	9	No reimbursement to owner
	Total	27

As outlined above, it is recommended that all properties that are connected to the Town’s water service be reimbursed the connection fee regardless of whether the fee was paid directly or indirectly by the property owner.

For the properties currently not connected to the watermain, the residents shall make their request for the water connection through the normal process from the Waterworks Department as outlined below, without the need to pay water connection charges (please note, the water meter charge is still applicable):

• Homeowner shall apply and pay for a water meter to be installed at the particular address. Application and payment will be received and processed at the Waterworks Department – 8100 Warden Avenue, Markham.
• Homeowner is provided with information on the plumbing requirements for the installation of the water meter.
• Homeowner advises the Waterworks department when their plumbing is ready for the water meter installation.
• Appointment is made by Town contractor, Neptune Technologies, to install the water meter.
• Neptune installs the water meter, cable and remote reader.

Following the connection of a lot to the watermain, the Town will remit to Minto the amount for the water connection fees, which will be taken from the capital budget (funded from the Box Grove Community Fund).

FINANCIAL CONSIDERATIONS:

The cost of the 27 water connections on 9^th Line North of 14^th Avenue is approximately $46,500 which is more than the $44,000 approved by Council on May 27, 2008. The February 19, 2008 report to Development Services Committee estimated a cost of $46,480 for the rebate, which is closer to the revised connection cost based on the 27 lots that will ultimately be connected to the water service provided by Minto. It is therefore recommended that an additional $2,500 be transferred from the Box Grove Community Fund (Capital Budget Account 620 101 5699 6805 – formerly 80 6900 6805 005) to cover this shortfall.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal Department has reviewed this report and their comments have been incorporated.

RECOMMENDED

BY: ________________________ ________________________

Barb Cribbett Andy Taylor

Treasurer Commissioner, Corporate Services

Appendix A – Council Extract – Markham Subcommittee Minutes – Box Grove Community Fund Distribution