281-DA-07, Off-Site Levy (Unofficial Consolidation as of June 8, 2010)
Cold Lake, Alberta
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BYLAW #281-DA-07 Off-Site Levy
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CITY OF COLD LAKE
BYLAW #281-DA-07 - Unofficial Consolidation
Please note: in a bylaw that is "Unofficially Consolidated", the original approved bylaw is
updated to include all of the approved amendments to that bylaw.
A BYLAW OF THE CITY OF COLD LAKE, IN THE PROVINCE OF ALBERTA, FOR
THE PURPOSE OF ESTABLISHING AN OFF-SITE LEVY FOR LAND THAT IS TO BE
SUBDIVIDED OR DEVLEOPED WITHIN THE CITY OF COLD LAKE.
WHEREAS Section 648 of the Municipal Government Act permits a Council to impose a levy
known as an Off-Site Levy in respect of land to be developed or subdivided within the municipal
limits of the City of Cold Lake and authorize an Agreement to be entered into for payment of the
levy;
AND WHEREAS on the 13th day of December 2005, the City has engaged in consultation with
representatives of the development industry to address and define existing and future infrastructure
requirements of the City with respect to circumstances of the Municipality and the benefits of
development;
AND WHEREAS the Council received advice and a report, "City of Cold Lake 2006 Development
Levy Report" from the Department of Public Works and Infrastructure Services in conjunction with
UMA Engineering Ltd. for offsite infrastructure upgrades which set out a fair and equitable
calculation of Off-Site levies in accordance with the purpose of the Municipal Government Act;
AND WHEREAS the Council of the City of Cold Lake has determined that a consistent levy for
each infrastructure type is in the best interests of all of the beneficiaries of development;
AND WHEREAS Council has advertised its intention to consider the provision of this Bylaw
pursuant to the provisions of Section 606 of the Municipal Government Act;
NOW THEREFORE the Council of the City of Cold Lake in the Province of Alberta, duly
assembled, hereby enacts as follows:
1.
There is hereby imposed a levy which shall be known as an Off-Site Levy in respect of all
undeveloped land that is to be subdivided or developed within the municipal boundaries of
the City of Cold Lake, where no previous off-site levies have been collected for the same
services under any previous Bylaw.
2.
The principles and criteria of the Off-Site Levy shall be in accordance with the attached
Schedule "A".
3.
The entering into of an Agreement with respect to, amongst other things, the collection of
an Off-Site Levy is hereby authorized.
4.
That Schedule "A" attached hereto shall form part of this By-Law and may be amended by
resolution of Council.
5.
That Bylaw No. 251-DA-06 of the City of Cold Lake is hereby repealed.
ENACTMENT
That this By-Law shall take effect and come into force upon third and final reading.
FIRST READING passed in open Council duly assembled in the City of Cold Lake, in the
Province of Alberta, this 13th day of March A.D. 2007, on motion by Councillor Jordan.
CARRIED
UNANIMOUSLY
SECOND READING passed in open Council duly assembled in the City of Cold Lake, in the
Province of Alberta, this 10th day of April A.D. 2007, on motion by Councillor Copeland.
CARRIED
BYLAW #281-DA-07 Off-Site Levy
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THIRD AND FINAL READING passed in open Council duly assembled in the City of Cold
Lake, in the Province of Alberta, this 10th day of April A.D. 2007, on motion by Councillor Jordan.
CARRIED
CITY OF COLD LAKE
__________________________________
MAYOR
__________________________________
CHIEF ADMINISTRATIVE OFFICER
BYLAW #281-DA-07 Off-Site Levy
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SCHEDULE "A"
BYLAW 281-DA-07 OFF-SITE-LEVY
PART 1: BACKGROUND
AUTHORITY TO COLLECT OFFSITE LEVIES AND ISSUES CREDITS
Pursuant to Section 648 of the Municipal Government Act, City Council has the authority to create
a bylaw for the purpose of collecting an Off-site Levy. The executed Development
Agreement authorizes City Administration to collect the assessed Off-site Levies and provide the
calculate compensation payments to developers.
DEFINITIONS
1. "Bylaw" means the off-site levy bylaw established by the City, to which this Schedule
"A" is attached.
2. "City" means the City of Cold Lake.
3. "Developable Land" shall mean all land contained within the Development Region:
3.1
upon which Development takes place after the date of passing of this Bylaw; or
3.2
for which Subdivision approval is obtained after the date of passing of this Bylaw
excluding all Developed Land.
4. "Developed Land" shall mean land that has been subject to Development- or a
Subdivision prior to the date of passing of this Bylaw, and in respect of which off-·site
levies for the same services have been paid.
5. "Development" means "development" as defined in the Municipal Government Act RSA
2000, c. M-26, s. 616.
6. "Development Agreement" means "development agreement" as referred to in the
Municipal Government Act RSA 2000, c. M-26, s. 650 and 655.
7. "Development Region" includes all land within the municipal limits of the City of Cold
Lake.
8. "Growth" shall mean:
8.1
the creation of new serviced, residential, commercial, industrial or institutional lots
through subdivision; and
8.2
the occurrence of development.
9. "Subdivision" means "subdivision" as defined in the Municipal Government Act RSA
2000, c. M-26, s. 616.
10. "Off-site Levy" means the off- site levy imposed pursuant to this Bylaw under the
authority
of the Municipal Government Act RSA 2000, c. M-26.
11. "Off-site" means any sanitary sewer, storm water sewer, water or roadway facilities
sized greater than the predefined base size or capacity.
12. "Oversize" shall mean being larger than a base diameter for pipes and larger than the
base sized road for roads. It is the capacity provided in a road, sewer, storm sewer, or
water facility that is greater than what is required to directly service the current growth.
OFF·SITE BYLAW PURPOSE
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1.1 This Bylaw creates an Off-site Levy to provide funds for the construction of off-site
infrastructure required for Growth.
1. OFF-SITE BYLAW PRINCIPLES
1.1
The following principles provide guidance for the interpretation of this Bylaw and
form the basis of the Bylaw provisions:
1.1.1 Development in new growth areas through Off-site Levies will provide the
capital that will fund the infrastructure required for Growth. Those who
benefit from the infrastructure, which is defined by all Developable Land in
the Development Region, should share proportionally, on a per hectare basis,
in related costs.
1.1.1.1 Provisions of Off-site infrastructure by developers of Developable
Land will not create an advantage or penalty due to the time or location
of development.
1.1.1.2 Infrastructure will be provided to maintain sustainable, cost effective
and orderly Growth.
1.1.1.3 The calculation of the Off-site Levy should be an open and transparent
process. The management of the Off-site Levy account should be an
audited process, with reports available to the public and industry.
2. OFF-SITE LEVY OBJECTIVES
2.1 to recover the cost of infrastructure required for Growth:
2.1.1 Using financing strategies that remain sustainable
2.1.2 Facilitating development by reducing risk on early developers and ensuring
future developers share the costs of the facilities from which they benefit.
2.1.3 Promoting cost effective and orderly development.
2.2 To promote orderly development by:
2.2.1 Providing off-site infrastructure, once the appropriate planning is in place,
and when warranted in development.
2.2.2 Providing infrastructure for contiguous development.
2.3 To create a transparent process by:
2.3.1 Providing opportunity for industry input into the levy, its definition and
administration.
2.3.2 Conforming with the Municipal Government Act.
2.3.3 Providing an annual report on levies.
2.4 To create a clear process for calculation of the rate, levies and credits by:
2.4.1 Creating consistent and predictable levies and credits.
2.4.2 Creating predictable and stable levies over time.
2.4.3 Documenting a process for establishing the levy rate.
APPLICATION OF OFF-SITE LEVIES
1. Off-site Levy will be assessed on all Developable Land within the Development Region
on a per hectare basis, excluding those portions of Developable Land that are designated
pursuant to a Subdivision as:
1.1
Environmental Reserve;
1.2
Municipal Reserve; or
1.3
Arterial Road Right of Way.
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2. For the purposes of calculating the net area of Developable Land where a storm water
management facility / dry pond is included in a parcel of land designated as Municipal
Reserve. levies will be assessed based on the estimated area of the pond's surface during
a 1 in 100-year storm event.
3. The Off-site Levy is a single indivisible levy. When one component of the Off-site Levy
becomes due, all components are due. No component levy can be deferred or waived
separately from the other components.
4. No legally defined parcel of land will be assessed levies on only a portion of its area.
5. Subject to the terms of this Bylaw, and any Development Agreement entered into by the
City, the Off-site Levy imposed pursuant to this Bylaw shall be paid upon the issuance of a
Development Permit in respect of any Developable Land, or before any subdivision plan is
registered at the Land Titles Office pursuant to a Subdivision of any Developable Land,
whichever date is the earliest.
6. Where the City deems it appropriate, it may direct that a Development Agreement be
entered into with the Owner or Occupier of any Developable Land which is the subject?
matter of a Development or a Subdivision. Which agreement shall provide for the payment
of the Off-site Levy imposed as specified pursuant to this Bylaw? Unless otherwise agreed
to, a Development Agreement shall require that the Off-site Levy will become due upon
execution of the Development Agreement and will, in any event, be paid prior to the
issuance of a Notice to Proceed with construction and servicing within the lands that are to
be subdivided or developed.
7. All funds collected pursuant to this Bylaw shall be accounted for in a special fund and
expended only as permitted under the provisions of the Municipal Government Act.
8. Nothing in this Bylaw precludes the City from:
8.1
imposing further or different levies, duly enacted by bylaw, on any portion of the
Developable Lands in respect of which the City has not collected levies;
8.2
deferring collection of the Off-site Levy for the stated objects of this Bylaw, on any
portion of Developable Lands in respect of which the City has not collected levies,
including requiring security for payment of such deferred levies;
8.3
reducing or forgiving payment of the levies required pursuant to this Bylaw, or
otherwise providing for credits for other Off-site or Oversize infrastructure
constructed by a developer in calculating and/or collecting the levies that become
payable pursuant to this Bylaw.
CALCULATION OF DEVELOPER OFF-SITE LEVIES
The Off-site Levy will be calculated as per the annual rates defined within Part 2 of this
Schedule "A". The Off-site Levy assessment is a function of net developing area and the Off-site
Levy rate as follows.
Net Area x Off-site Levy Rate =Assessed Off-site Levy
CALCULATION OF OFF-SITE LEVY RATE
1. The Off-site Levy rate is to be determined by determining the following for each levy
component:
1.1
Total hectares of Developable Land within the municipal boundaries of the City of
Cold Lake.
1.2
A list of proposed utility projects as outlined in existing municipal servicing studies
and analysis (2009 Water Distribution and Modelling Assessment,2009 Wastewater
System Modelling Assessment, 2006 Master Drainage Plan, and 2000 Cold Lake
Traffic Study).
1.3
Total estimated present day cost of infrastructure required to service the
development region.
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1.4
Estimated oversize required to service off-site areas.
1.5
Present per hectare cost of each levy component.
The levy rate calculation will be fully updated at least once every three (3) years. Representatives
of the Development community are to be invited to participate in this revision of the Off-site
Levy calculation. The Off-site Levy rate is to be calculated separately for each of the water,
sanitary sewer, storm water and arterial roadway components.
CALCULATION DETAILS
1. The Off-site Levy is comprised of the following:
1.1
Water reservoirs and pumping or booster stations
1.2
Water distribution trunk lines
1.3
Storm water trunk lines
1.4
Storm water drainage parkways
1.5
Storm water detention and retentions ponds
1.6
Storm sewer laterals
1.7
Storm water service connections
1.8
Sanitary sewer trunk lines
1.9
Sanitary sewer lift stations
1.10
Sanitary sewer force mains
1.11
Sanitary sewer laterals
1.12
Service connections
DEFINED OFF-SITE LEVY RATES
2010 OFFSITE LEVY RATES
DESCRPITON
CURRENT OFF-SITE
LEVY
Water Distribution
$19,550.34
Sanitary Sewer
$13,520.11
Storm Sewer
$0
Roadway Network
$43,172.07
Total
$76,242.52
STORM WATER MANAGEMENT OFF-SITE LEVY SURCHARGE
1. In addition to the prescribed Off-site Levy a Storm Water Management Pond Off-site
Levy of $26,704 is applied to all developing areas where no storm water management
pond is to be built as that facility or responsibility has been deferred to adjacent lands.
This surcharge is an additionally levy that is to be applied to development for the years of
2010, 2011 and 2012.
2. These rates should not be imposed unless the responsibilities of constructing a storm
water management facility are deferred to another landowner/developer or the City of
Cold Lake. The charged and deferred rates as they relate to storm water management
facilities are to be applied on a developable area basis relating to specific basins. In this
BYLAW #281-DA-07 Off-Site Levy
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respect, funds collected for storm water offsite levies where the construction of the
facility has been deferred to another landowner/developer can only be deferred and
applied as a contribution within the same basin.
3. The Storm Water Management Pond Off-site Levy is calculated, charged and applied
pursuant to the provisions of this Bylaw.
PART 2: CITY OF COLD LAKE 2010 DEVELOPMENT LEVY REVIEW
Technical analysis regarding the establishment of an Off-site Levy for the City of Cold Lake is
found in the report "City of Cold Lake 2010 Development Levy Review" which is annexed
hereto and forms part of this Schedule "A" to the bylaw.
BYLAW #281-DA-07 Off-Site Levy
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Amended by Motion #CM20100608.1013
CITY OF COLD LAKE
2010 OFF-SITE
BYLAW NO. 281-DA-10
SCHEDULE "A"
LEVY REVIEW
FEBRUARY 2010
BYLAW #281-DA-07 Off-Site Levy
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TABLE OF CONTENTS
EXECUTIVE SUMMARY .................................................................................................................... 3
1.0 INTRODUCTION ........................................................................................................................... .4
2.0 HISTORY ........................................................................................................................................ .4
3.0 DEVELOPABLE AREA. ................................................................................................................ .4
4.0 WATER DISTRIBUTION SYSTEM ............................................................................................. .7
5.0 SANITARY SEWER SYSTEM ....................................................................................................... 9
6.0 STORM WATER MANAGEMENT SYSTEM ............................................................................ .10
7.0 ROADWAY NETWORK. ............................................................................................................ .12
8.0 DEVELOPMENT LEVY REVIEW ............................................................................................... 12
9.0 RECOMMENDATIONS ................................................................................................................ 13
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Executive Summary
Provisions in the Municipal Government Act enables municipalities to establish development levies
for the purpose of funding capital costs associated to new and/or expanded infrastructure
improvements related to growth. Municipalities must ensure that revenues collected through the
imposition of development levies, are only used for this purpose. Capital infrastructure projects
relating to conditional improvements and/or capital replacement are neither applicable nor fundable
utilizing off-site levies.
Off-site levies are typically established to assist in the funding of capital projects such as water
distribution system, sanitary sewer systems, storm water management systems, and roadway
network systems. Further examples of development levies utilized by other municipalities include
water and wastewater treatment facilities, park development, municipal reserve development, and
recreational facility develop. This report was limited to the City of Cold Lake's water distribution
system, sanitary sewer system, storm water management system, and roadway network system.
The City of Cold Lake's infrastructure deficit relating to the enhancement, upgrade, and/or
expansion of facilities for water, wastewater, storm sewers and roadways is estimated at
$106,218,207.75. Of the total deficit, $27,174,232.75 is associated to the water distribution system,
$18,814,750.00 is associated to the sanitary sewer system, $1,026,475.00 is associated to the
stormwater sewer system and $59,202,750.00 is associated to the roadway network system. It is
recommended that the costs for infrastructure improvements associated to growth are not
subsidized by municipal, provincial, and/or federal grants. Infrastructure grants should be utilized
to maintain and/or sustain existing infrastructure.
The net developable land within the municipal boundaries of the City of Cold Lake is 1,373
hectares. In order to provide the necessary infrastructure to sustain development to full build out
within the City's municipal boundary, it is recommended that the total deficit be captured through
the remaining developable area. Based on the estimated total deficit of $106,218,207.75, it is
recommended that an off-site levy be imposed at a rate of $76,242.52 per hectare on developing
land in order to facilitate full cost recovery. It is also recommended that an additional charge of
$26,708.67 per hectare be applied to developing land not constructing a stormwater management
facility.
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1.0 Introduction
The City of Cold Lake is an active growing community with developments of institutional,
commercial, and residential land uses. To support the sustainable management of growth, the City
charges development levies to fund the enhancement, upgrade or expansion of facilities for water,
wastewater, storm sewers and roadways.
Pursuant to Section 648 (2) of the Municipal Government Act:
An off-site levy may be used only to pay for all or part of the capital cost of any or all of the
following:
(a) New or expanded facilities for the storage, transmission, treatment of supplying of water;
(b) New or expanded facilities for the treatment, movement or disposal of sanitary sewage;
(c) New or expanded storm sewer drainage facilities;
(c.1) New or expanded roads required for or impacted by a subdivision or development;
(d) Land required for or in connection with any facilities described in clauses (a) to (c.1).
The objective of this report is to identify and recover the cost of infrastructure projects necessitated
by growth using financing strategies that are sustainable. This strategy will help facilitate
development and the risk to developers by ensuring future developments share the costs of facilities
that provide an overall benefit.
2.0 History
In 2007, Council directed administration to update the development levy process to provide for full
cost recovery. The 2007 Development Levy Review proposed the following Off-site Levies:
TABLE 2: 2007 DEVELOPMENT LEVY REVIEW PROPOSED OFF-SITE LEVIES:
2007
$78,066
2008
$81,969
2009
$86,067
Offsite levy rates and their application are to be reviewed on an annual basis to monitor and
evaluate the following:
Offsite levies that were collected during the year;
Offsite levies that were constructed during the year;
Inflation cost on future infrastructure projects;
Changes and/or updates to future infrastructure projects.
3.0 Developable Area
For this review the Department of Public Works and Infrastructure Services has encompassed the
entire corporate boundaries of the City of Cold Lake excluding the properties owned by the
Department of National Defence. The City of Cold Lake encompasses approximately 2445
Hectares (6043 Acres) of
which 1072 hectares (2649 acres) are classified as developed land and 1373 hectares (3393 acres)
are classified as undeveloped land. A diagram outlining developed and undeveloped land is shown
in the following figure:
Legend
Legend
C
DEVELOPED LAND
-
UNDEVELOPED LAND
N
Â
'
=-1-1
_,,-··
-1-'
---?
?!1?
? :_._;··:
.
' -
li...
/_'.:{?Jj
0
BYLAW #281-DA-07 Off-Site Levy
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Figure 1.0: Developed and Undeveloped Areas within the City of Cold Lake
4.0 Water Distribution System
The City of Cold Lake's water distribution system includes all facilities and water supply lines,
reservoirs, pumping facilities or booster stations, trunk and distributions mains. The Water
Distribution Modeling Assessment (AEcom 2009) was used to determine future infrastructure
needs as they relate to water distribution.
This study outlines several necessary water distribution projects and improvements in order to
sustain growth throughout the City of Cold Lake's municipal boundaries. It should be noted that
because of the overall community benefit, many of these projects are outside the normal scope of
work for which a developer is expected to complete. Currently, the City of Cold Lake has no
standard mechanism to compensate developers for offsite facilities installed by the developers on
land for which they are developing if there is a greater community benefit that is to be realized.
The following example provides clarification regarding community benefit and developer
accountability in infrastructure provision. The City of Cold Lake's Municipal Engineering
Servicing Standard identifies that the minimum size of a residential subdivision water distribution
main shall be 200mm. However, the Municipal Servicing Study identifies that a water distribution
main of 250mm is necessary in order to service offsite lands around those developing lands. The
BYLAW #281-DA-07 Off-Site Levy
Page 13 of 24
developer should be compensated for the over sizing of the water distribution main as off-site
infrastructure to future developments. It should be noted that each development area should be
hydraulically modeled to confirm the infrastructure needs of the developing area.
Using this formula, the City of Cold Lake will credit costs associated to over sizing infrastructure
back to the developer through the development agreement process. These costs will be applied to an
offsite levy account which will then be applied on a per hectare basis of gross developable land.
Utilizing the AEcom Study, a detail of the backlog of projects and contributions to over sizing
water distribution mains in order to sustain growth has been prepared. Figure 2.0 outlines the
necessary improvements to the water distribution system.
The current backlog of projects and contributions to over sizing of water distributions mains is in
the order of magnitude of $27,174,232.75. This was calculated by applying a combination of future
projects that will be funded entirely by the City of Cold Lake and future contributions to over sizing
infrastructure to sustain growth. Contributions to the off-site levy reserve reduce the backlog by
$331,610.40 thereby reducing the total deficit to $26,842,622.35. These costs will need to be
captured over the remaining 1373 hectare of developable land within the municipal boundaries of
the City of Cold Lake. It is recommended that the water distribution system off-site levy be
established at a rate of $19,550.34 per hectare. Table 3 outlines in more detail, the costs associated
to the infrastructure deficit.
TABLE 3: CITY OF COLD LAKE WATER DISTRIBUTION SYSTEM DEFICIT
Description
Quantity
(m)
Oversize
(mm)
Unit Rate
Cost
($/mm/m)
Total Estimated
Cost
Reservoir Pumphouse and
Supplyline
$ 4,500,000.00
Supplyline to Building #10 (Cold
Lake South)
$ 2,000,000.00
Booster Station (Cold Lake North)
$ 500,000.00
Building # 5 Reservior
Improvements
$ 1,386,582.75
Building # 10 Pumphouse
Improvements
$ 1,080,000.00
Upgrade for existing reservior
capacity
$ 2,400,000.00
Water Piplines in Cold Lake
North
(Developed Area Need
Replacement)
150mm with 200mm Water Supply
Main
942
50
2.00
$ 94,200.00
150mm with 300mm Water Supply
Main
217
150
2.00
$ 65,100.00
150mm with 400 Water Supply
Main
590
250
2.00
$ 295,000.00
200mm with 400mm Water Supply
Main
497
200
2.00
$ 198,800.00
Water Piplines in Cold Lake
North
(Developed Area New)
150mm Water Supply Main
283
150
2.00
$ 84,900.00
200mm Water Supply Main
2079
200
2.00
$ 831,600.00
300mm Water Supply Main
1112
300
2.00
$ 667,200.00
Water Piplines in Cold Lake
South (Developed Area Need
Replacement)
150mm with 200mm Water Supply
Main
726
50
2.00
$ 72,600.00
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150mm with 250mm Water Supply
Main
626
100
2.00
$ 125,200.00
150mm with 300 Water Supply
Main
1089
150
2.00
$ 326,700.00
200mm with 250mm Water Supply
Main
546
50
2.00
$ 54,600.00
Water Piplines in Cold Lake
South (Developed Area New)
150mm Water Supply Main
288
150
2.00
$ 86,400.00
200mm Water Supply Main
1611
200
2.00
$ 644,400.00
250mm Water Supply Main
645
250
2.00
$ 322,500.00
300mm Water Supply Main
820
300
2.00
$ 492,000.00
400mm Water Supply Main
479
400
2.00
$ 383,200.00
Water Piplines in Cold Lake
(Undeveloped Aeas)
250mm Water Supply Main
6500
50
1.45
$ 471,250.00
300mm Water Supply Main
31000
150
1.45
$ 6,742,500.00
400mm Water Supply Main
9500
200
1.45
$ 2,755,000.00
Supply Main
8200
50
1.45
$ 594,500.00
Total:
$ 27,174,232.75
Note:
Pipe Cost=$1.45 per mm meter
Total Estimated Off-Site
Contributions:
$27,174,232.75
Restoration Cost= $ 0.55 per mm
meter
Total Cost: $ 2.00 per mm meter
Contributions to-date:
$331,610.40
Total Deficit (Adjusted)
$26,842,622.35
Gross Developable Area
(Hectares):
1373
Water Distribution Off-Site Levy
Surcharge:
$19,550.34
5.0 Sanitary Sewer System
The sanitary sewer system includes all sewer trunks, sewer laterals, service connections, lift
stations, and force mains. The Wastewater System Modelling Assessment (AEcom 2009) was used
to determine future infrastructure needs as they relate to sanitary sewerage.
These studies outline several necessary sanitary sewer projects and improvements in order to
sustain growth throughout the City of Cold Lake's municipal boundaries. Similar to the water
distribution system, it should be noted that because of the overall community benefit, many of these
projects are outside the normal scope of work for which a developer is expected to complete.
Currently, the City of Cold Lake has no standard mechanism to compensate developers for offsite
facilities installed by the developers on land for which they are developing if there is a greater
community benefit that is to be realized.
The following example provides clarification regarding community benefit and developer
accountability in infrastructure provision. The City of Cold Lake's Municipal Engineering
Servicing Standard identifies that the minimum size of a residential subdivision sanitary sewer
main shall be 200mm. However, the Municipal Servicing Study identifies that a sewer main of
250mm is necessary in order to service
land outside the land owned by the developer and/or land is currently being developed. The
developer should be compensated for the over sizing of the sanitary sewer main as off-site
infrastructure to future developments. It should be noted that each development area should be
hydraulically modeled to confirm the infrastructure needs of the development.
Using this formula, the City of Cold Lake will credit costs associated to over sizing infrastructure
back to the developer through the development agreement process. These costs will be applied to an
offsite levy account which will then be applied on a per hectare basis of
gross developable land.
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We have prepared a backlog of projects and contributions to over sizing sewer collection mains in
order to sustain growth, utilizing the Wastewater System Modelling Assessment. Figure 3.1
outlines the
necessary improvements to the sewer collection system in Cold Lake South and Figure 3.2 outlines
the necessary improvements to the sewer collection system in Cold Lake North.
The current backlog of projects and contributions to over sizing of sanitary sewer system is in the
order of magnitude of $18,814,750.00. This was calculated by applying a combination of future
projects that will be funded entirely by the City of Cold Lake and future contributions to over sizing
infrastructure to sustain growth. Contributions to the off-site levy reserve reduce the backlog by
$251,641.84
thereby reducing the total deficit to $18,563,108.16. These costs will need to be captured over the
remaining 1373 hectare of developable land within the municipal boundaries of the City of Cold
Lake. It is recommended that the sanitary sewer off-site levy be established at a rate of $13,520.11
per hectare.
Table 4 outlines in more detail, the costs associated to the infrastructure deficit:
TABLE 4: CITY OF COLD LAKE SANITARY SEWER SYSTEM DEFICIT
Description
Quantity
(m)
Oversize
(mm)
Cost Unit Rate
($/mm/m)
Total Estimated Cost
Proposed
Replacement of 200mm forcemain from Building 1 to Hospital
$ 1,200,000.00
Sanitary Forcemain to Lagoon Approximately 6 KM
$ 6,000,000.00
Lift Station #1 and Forcemain
$ 1,200,000.00
Lift Station #2 and Forcemain
$ 1,400,000.00
Lift Station #3 and Forcemain
$ 2,100,000.00
Lift Station #4 and Forcemain
$ 2,300,000.00
Existing
Lift Station #3 and Forcemain
$ 1,200,000.00
Sanitary Distribution Main (Cold Lake South)
250mm Sanitary Sewer Trunk
7,000
50
1.45
$ 507,500.00
300mm Sanitary Sewer Trunk
2,500
100
1.45
$ 362,500.00
375mm Sanitary Sewer Trunk
800
175
1.45
$ 203,000.00
450mm Sanitary Sewer Trunk
3,000
250
1.45
$ 1,087,500.00
450mm Tie into Forcemain through MD
800
250
1.45
$ 290,000.00
Sanitary Distribution Main (Cold Lake North)
200mm Sanitary Sewer Trunk
800
0
1.45
$ -
250mm Sanitary Sewer Trunk
4,700
50
1.45
$ 340,750.00
300mm Sanitary Sewer Trunk
2,900
100
1.45
$ 420,500.00
375mm Sanitary Sewer Trunk
800
175
1.45
$ 203,000.00
Total:
$ 18,814,750.00
Total Estimated Off-Site Contributions:
$ 18,814,750.00
Contributions to-date:
$251,641.84
Total Deficit (Adjusted)
$18,563,108.16
Gross Developable Area (Hectares):
1373
Sanitary Sewer System Off-Site Levy
Surcharge:
$13,520.11
6.0 Storm Water Management System
The storm water management system includes all sewer trunks, sewer laterals, service connections,
storm water lift stations, drainage parkways, detention ponds and retention ponds. The 2006 Master
Drainage Plan (AEcom) was used to determine future storm water management infrastructure
needs.
BYLAW #281-DA-07 Off-Site Levy
Page 16 of 24
These studies outline several necessary storm water management projects and improvements in
order to sustain growth throughout the City of Cold Lake's municipal boundaries. For the most
part, the City of Cold Lake expects each development to build the necessary infrastructure to
sustain improvement within its parcel. In a few instances the City of Cold Lake will be required to
assist in off-site contributions. In these instances, the projects are outside the normal scope of work
for which a developer is expected to complete. Again similar to the sanitary sewer system, and
water distribution system, the City of Cold Lake has no standard mechanism to compensate
developers for offsite facilities installed by the developers on land for which they are developing.
Using this concept, the City of Cold Lake will credit costs associated to over sizing infrastructure
back to the developer through the development agreement process. These costs will be applied to an
offsite levy account which will then be applied on a per hectare basis of gross developable land.
There is a backlog of projects and contributions to the storm water management system in order to
sustain growth calculated utilizing the Master Drainage Plan. Figure 4.0 outlines the necessary
improvements to the storm water management system.
The current backlog of projects and contributions to over sizing of sanitary sewer system in is the
order of magnitude of $1,026,475.00. This figure was calculated by applying a combination of
future projects that will be funded entirely by the City of Cold Lake and future contributions to over
sizing infrastructure to sustain growth. Contributions to the off-site levy reserve reduce the backlog
by $1,045,118.18 thereby reducing the total deficit to $0. It is therefore recommended that no storm
sewer off-site levy be established at this time.
Table 5 outlines in more detail, the costs associated to the infrastructure deficit:
TABLE 5: CITY OF COLD LAKE STORM WATER MANAGEMENT SYSTEM DEFICIT
Description
Quantity (m)
Oversize
(mm)
Cost Unit
Rate ($/m)
Total
Estimated
Cost
450mm Storm Sewer Trunk
970
150
1.45
$210,975.00
600mm Storm Sewer Trunk
1,300
300
1.45
$565,500.00
1200X1800mm Stormwaterm
Pipe
480
520.83
$250,000.00
Total
$1,026,475.00
Total Estimated Off-Site Contributions:
$
1,026,475.00
Contributions to-date:
$1,045,118.18
Total Deficit (Adjusted)
-$18,643.18
Gross Developable Area
(Hectares):
1373
Storm Water Sewer System Off-Site Levy
Surcharge:
-$13.58
Furthermore, it should be noted that stormwater management facilities will be required throughout
the municipal boundaries of the City of Cold Lake. These stormwater management facilities are
required to generally maintain stormwater runoff of new development to predevelopment flow
rates. The order of magnitude for cost to construct these facilities is $36,671,000. Currently, the
City of Cold Lake expects developers to construct these facilities, however this is not always the
case. In some instances, it is more feasible to have one developer construct a stormwater
management pond for multiple land owners. It is therefore recommended that the City of Cold Lake
charge an additional development levy of $26,704.01 per hectare where no stormwater management
facilities are being constructed. These levies will fund or contribute to stormwater management
facilities that will be constructed by the City of Cold Lake or other developers.
Further breakdown of the stormwater management facilities has been outlined in Table 6:
TABLE 6: STORMWATER MANAGEMENT FACILITIES
BYLAW #281-DA-07 Off-Site Levy
Page 17 of 24
Description
Quantity
(m)
Oversize
(mm)
Cost Unit
Rate
($/mm/m)
Total
Estimated Cost
Storm Water Management
Facilities
$36,671,000.00
Total Estimated Off-Site Contributions:
$
36,671,000.00
Contributions to-date:
$6,400.07
Total Deficit (Adjusted)
$36,664,599.93
Gross Developable Area
(Hectares):
1373
Storm Water Sewer System Off-Site Levy Surcharge:
$26,704.01
These rates should not be imposed unless the responsibilities of constructing a stormwater
management facility are deferred to another landowner / developer or the City of Cold Lake. The
charged and deferred rates as they relate to stormwater management facilities are to be applied on a
developable area basis relating to specific basins. In this respect, funds collected for stormwater
offsite levies where the construction of the facility has been deferred to another landowner /
developer can only be deferred and applied as a contribution within the same basin.
7.0 Roadway Network
In accordance with the Municipal Government Act, off-site levies may be imposed on developing
land to fund new and/or expanded roadways that are necessitated by development. For the purpose
of this review, it is recommended that off-site levies be established for arterials and major collector
roadways. The 2000 Traffic Study (UMA) was used to determine future arterial and collector
roadway infrastructure needs.
These studies outline several future roadway network projects and improvements in order to sustain
growth throughout the City of Cold Lake's municipal boundaries. As local improvements necessary
to directly serve a particular development, it should be noted that the City of Cold Lake expects
residential local and collector roadways to be constructed by developers at the time of development.
Figure 5.0 outlines roadway improvements and/or upgrade necessitated by population growth. This
figure was prepared utilizing the 2000 Traffic Study.
The current backlog of projects is in the order of magnitude of $59,202,750.00. These costs will
need to be captured over the remaining 1373 hectare of developable land within the municipal
boundaries of the City of Cold Lake. Debits from the off-site levy reserve increase the backlog by
$72,502.41 thereby increasing the total deficit to $59,275,252.41. These costs will need to be
captured over the remaining 1373 hectare of developable land within the municipal boundaries of
the City of Cold Lake. It is recommended that a roadway network off-site levy be established at a
rate of $43,172.07 per hectare.
Table 7 outlines in more detail, the costs associated to the infrastructure deficit:
BYLAW #281-DA-07 Off-Site Levy
Page 18 of 24
TABLE 7: CITY OF COLD LAKE ROADWAY NETWORK DEFICIT
Road Classification
Quantity
(m)
Cost Unit
Rate
($/m)
Total
Estimated
Cost
Collector
9,000
1,953.50
$17,581,500.00
2 Lane Arterial
16,500
2,522.50
$41,621,250.00
Total
$59,202,750.00
Total Estimated Off-Site Contributions:
$
59,202,750.00
Contributions to-date:
-$72,502.41
Total Deficit (Adjusted)
$59,275,252.41
Gross Developable Area (Hectares):
1373
Road Network System Off-Site Levy Surcharge:
$43,172.07
8.0 Development Levy Review
It is essential that off-site levies rates and supporting analysis are monitored and evaluated on an
annual basis. As development progresses and contributions to off-site levies are being made, the
City of Cold Lake will contribute to off-site projects and oversizing contributions. Table 8
demonstrates a method of which the status off-site levies may be monitored and tracked.
The "Expenditures and Revenue to Date" section of the table summarizes and/or will summarize
the current off-site levy reserves, contributions to off-site infrastructure projects, and revenues
generated from off-site development levies. The current status of the City of Cold Lake's off-site
levy reserves is $1,562,268.08.
The "Future Expenditures Estimate" section of the table summarizes current estimated
infrastructure deficit related to future off-site infrastructure projects and oversizing contributions.
These projects and contributions are summarized Sections 4 thru 7 of this document. The total
infrastructure deficit relating to off-site infrastructure projects and oversizing is $142,889,207.75.
The "Net Cost and Rate Calculation" section of the table summarizes the proposed off-site levy
rate utilizing the total deficit of each function and remaining developable area within the municipal
boundaries of the City of Cold Lake. The proposed off-site levy rates are as follows:
- Water Distribution $19,550.34
- Sanitary Sewer
$13520.11
- Storm Sewer
$0
- Roadway Network $43,172.07
- Total
$76,242.52
BYLAW #281-DA-07 Off-Site Levy
Page 19 of 24
TABLE 8: CITY OF COLD LAKE DEVELOPMENT LEVY SUMMARY
TABLE 8: CITY OF COLD LAKE DEVELOPMENT LEVY SUMMARY
Description
Water
Sanitary
Storm
Roadway
Total
Distribution
Sewer
Sewer
Network
EXPENDITURES AND REVENUES TO DATE
Current Off-site Reserve Status (Dec 31/2008)
304,928.71
232,491.78
1,027,825.42
140,567.94
Contributions to projects to date
Current Year Expenditures
-300,000
Current Year Revenue
26,681.69
19,150.06
17,292.76
86,929.65
Net Balance for Projects to Date (2010/01/01)
331,610.40
251,641.84
1,045,118.18
-72,502.41
1,562,268.08
FUTURE EXPENDITURE ESTIMATE
Projected Future Construction Costs
27,174,232.75
18,814,750.00
1,026,475.00
59,202,750.00
Grant and/or Subsidy Applied
Net Future Expenditures:
26,842,622.35
18,563,108.16
-18,643.18
59,275,252.41
NET COSTS AND RATE CALCULATION
Total Deficit
Remaining Developapble Area (Ha)
1373
1373
1373
1373
Proposed 2010 Rates ($/Ha):
19550.34
13520.11
0.00
43172.07
76242.52
9.0 Recommendations
Again, it is recommended that off-site levies are calculated at full cost recovery. The following
table outlines the recommended 2010 offsite levy rates based on the information provided and the
estimated off-site levy rate for 2011 and 2012 based on a 5% inflation factor.
2010 OFFSITE LEVY RATES
DESCRPITON
CURRENT OFF-SITE
LEVY
Water Distribution
$19,550.34
Sanitary Sewer
$13,520.11
Storm Sewer
$0
Roadway Network
$43,172.07
Total
$76,242.52
2011 OFFSITE LEVY RATES
DESCRPITON
CURRENT OFF-SITE
LEVY
Water Distribution
$20,527.87
Sanitary Sewer
$14,196.12
Storm Sewer
$0
Roadway Network
$45,330.67
Total
$80,054.65
2012 OFFSITE LEVY RATES
DESCRPITON
CURRENT OFF-SITE
LEVY
Water Distribution
$21,554.26
Sanitary Sewer
$14,905.92
Storm Sewer
$0
Roadway Network
$47,597.20
Total
$84,057.38
Legend
PROPOSED WATER SUPPLY MAIN
Size_mm
--
250mm - 6500m
--
300mm- 31000m
--
400mm - 9500m
--
SUPPLY - 8200m
0
]
<3
CITY OF COLD LAKE
PUBLIC V.ORKS AND INFRASTRUCTURE SERVICES
DATE:
2010 Developmnetu,vy Review
09
0
SCALE:
Flgu,e 1.0Waœr Dlshl>utlon Syst
f-+-..-,.--if-----,.,----i
NTS
(Cold La,ke South}
1 tF 1
BYLAW #281-DA-07 Off-Site Levy
Page 20 of 24
Figure 2.0: Proposed Water Distribution System Projects
PUBLIC w:>RKS? OF COLO LAKE
CATE:
0 lNFRASTRUCT\JRS
.OM6
2llOB Oo-,lelo
SERVICES
SCALE:
pment Levy Review
:16 475
Figure4t0SanltarySe
--
250mm - 7000m
--
300mm - 2500m
-?-
J?Smm - 800m
--
450mm - 3000m
? - - lie Into FOf
.
cema,n lhru MD_ 800m
Legend
PROPOSED SANITARY SEWER
BYLAW #281-DA-07 Off-Site Levy
Page 21 of 24
Figure 3.1: Proposed Sanitary Sewer System Projects (Cold Lake South)
Legend
--
21Xlfmt-800m
--
250rrm-4700m
--3'Xlmn-29Xlm
--
J15mm-aoom
BYLAW #281-DA-07 Off-Site Levy
Page 22 of 24
Figure 3.2: Proposed Sanitary Sewer System Projects (Cold Lake North)
Legend
PROPOSED STORM SEWER
--
1200mm - 480m
--
600mm - 1300m
--
450mm - 970m
0
CllY OF COLD LAKE
PU8UC WORKS AND liFRASTRUCTl#lE SERVICES
DATE:
2_10
2010 Development Levy Review
SCALE:
Figun, S.0 Storm Water Managemen
1-"'--i---+---------f
NTS
(COid Lal<it SOU01)
1 OF 1
BYLAW #281-DA-07 Off-Site Levy
Page 23 of 24
Figure 4.0: Proposed Stormwater Management System Projects
Legend
--
2 LANEARTERIAL- 16500M
COLLECTOR NETWORK - 9000M
CITY OF COLD LAKE
PUBLIC V.ORKS AND INFRAST!IUCTUIE SERVICES
DATE:
?.,n
-02-10
2010 Development Levy Review
>--+-----+-------<SCALE:
Figure 7.0 Roodwoy N"™'rl<S
NTS
101'1
BYLAW #281-DA-07 Off-Site Levy
Page 24 of 24
Figure 5.0: Proposed Roadway System Projects