Municipal Responsibility Agreements: Making Decentralized Options Possible

Transcription

1 Municipal Responsibility Agreements: Making Decentralized Options Possible Susan Conner, FCPA, FCA in collaboration with Peter Langan, P.Eng. December 4, 2015

2 Municipal Responsibility Agreements Legislation leading to Municipality Responsibility Agreements Highlights from the Procedure D-5-2 Case Study 1 - demonstrating the need for MRA Case Study 2 - successful implementation on a new project Case Study 3 - implementation on an existing project

3 Legislation Leading to Municipal Responsibility Agreements Water Sewage Safe Drinking Water Act, 2002 Ontario Water Resources Act R.S.O. 1990

4 Highlights from the Procedure D-5-2 Private Communal Services, in the absence of a responsible public authority to ensure proper operation and maintenance, have a greater likelihood to malfunction as a result of poor management practices and that private operators are less likely to have sufficient funds to remediate problems. It is recognized that a municipality, as a publicly accountable body, with permanency of place, is the appropriate authority to be responsible for ensuring proper management of communal services. The Municipal Responsibility Agreement a) Operating and maintenance standards; b) A definition of default; c) An outline of remedial action in the event of default ; d) Financial assurance provisions; e) Registration on title of the subject property; f) Easements, where required; g) Right of entry and inspection; and, h) That when required communal services (including any interests in the land) not already owned by the municipality will be transferred to the municipality at no cost to the municipality.

5 Case Study 1 - Demonstrating the Need for MRA Fetherston Mobile Home Park Shared Goals Safe Water and Waste Water Safe Environment OPERATOR DESIGN & CONSTRUCTOR

6 Case Study 1 - Demonstrating the Need for MRA Cont d. Component North Grenville Fetherston Clearford Operator Land Ownership Design/MOE Capital Investment Operating and Maintenance Safe Environment Land Value Operating Security Capital Security Hand-Over

7 The Fetherston Case Study Continues A BIG Problem Design Brief The Solution Home Security Memorandum of Understanding (3 Parties) Communal System Responsibility Agreement (4 Parties) Service Agreement (2 Partiers) Build, Operate, Maintain and Manage Agreement (2 Parties)

8 The Fetherston Case Study- Lessons Learned 1) Facilitated Session of the Parties- Common Goals What is important to each party? 2) Start from the perspective of protection-identify for each party. Residential Municipality Private Design, Build, Operate and Maintain Enterprises Lawyers - Safe Water and a Safe Environment - Preserve home value - Security that systems will be maintained - Safe Water and Safe Environment - Protect taxpayers - Avoid financial and legal liability - Marketplace Reputation - Protect Capital Investment - Revenue Stream Build, Operate, Maintain and - Protect Individual Client Interests Manage Agreement (2 Parties)

9 The Fetherston Case Study- Lessons Learned 3) Start Early - Before Site Plan Application 4) Be ready for positive dialogue with residential developers 5) Agreement on Key Principles, Terms and Conditions Start with a Term Sheet 6) Flexible Template - be prepared to customize

10 Case Study 2 - successful implementation on a new project Ballantrae Golf and Country Club 400 acre site at Aurora Road and Highway 48 in York Region Proposal was for 800 units of clustered homes developed around a 12 hole championship golf course promoted as an Adult Lifestyle Community Owner Schickedanz Brothers Located in the community of Ballantrae Ontario which had a recent municipal water supply but no municipal sewage system Wastewater was proposed by a communal treatment plant to be privately owned and operated (condo fees) A Municipal Responsibility Agreement was necessary

11 Case Study 2 - successful implementation on a new project Ballantrae Golf and Country Club BALLANTRAE GOLF & COUNTRY CLUB

12 Case Study 2 - successful implementation on a new project Ballantrae Golf and Country Club WWTP SITE

13 Case Study 2 - successful implementation on a new project Ballantrae Golf and Country Club STORMWATER/IRRIGATION POND SBR HOLDING PONDS

14 Case Study 3 - implementation on an existing project Dwyer Hill RV Resort - Ottawa Report to/rapport au: Agriculture and Rural Affairs Committee The Dwyer Hill RV Resort, located at 1229 Dwyer Hill Road, is located on the south side of Highway 7, immediately east of Dwyer Hill Road. The applicant has a commercial area for trailer sales and a mobile home park that accommodates 112 permanent units occupied year round. The site plan has been approved to recognize the existing development and contains conditions that require the owner to enter into a Municipal Responsibility Agreement for the well and septic systems that serve the 112 mobile homes. The Ministry of the Environment (MOE) has issued Certificates of Approval for the existing private well water and septic systems that service the existing mobile homes. As has happened in the past with a similar system, should the owner of 1229 Dwyer Hill Road default on the responsibility to operate these systems to the satisfaction of the MOE, the Ministry can order the City to operate and maintain these systems. Under the Safe Drinking Water Act and the Ontario Water Resource Act, the ministry could also transfer ownership responsibility for the systems to the City.

15 Case Study 3 - implementation on an existing project Dwyer Hill RV Resort - Ottawa Report to/rapport au: Agriculture and Rural Affairs Committee Indeed, considering that these systems exist presently, if the Ministry of the Environment was to issue orders the owner defaulted on, the responsibility would likely be transferred to the City by authority of the Ministry of the Environment regardless of whether a Municipal Responsibility Agreement exists or not. Ongoing regulatory compliance for monitoring and the operation of this site rests between the Owner and MOE, not the City. It is only when there is non-compliance that the City may be obligated to become involved. Municipal Responsibility Agreements are a requirement of the Ministry of the Environment s Certificates of Approval and the rationale and requirements of such are described by MOE s Procedure D-5-2, Application of Municipal Responsibility Agreements for Communal Water and Sewage Services as follows: from City of Ottawa Council Report

16 Case Study 3 - implementation on an existing project Dwyer Hill RV Resort - Ottawa DWYER HILL RV RESORT

17 Questions?