HomeMy WebLinkAboutDSD-2025-080 - New Dundee Road Local ImprovementDevelopment Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: February 24, 2025
SUBMITTED BY: Chris Spere, Director, Engineering Services, 519-783-8897
PREPARED BY: Chris Spere, Director, Engineering Services, 519-783-8897
WARD(S) INVOLVED: Ward 4
DATE OF REPORT: January 16, 2025
REPORT NO.: DSD-2025-080
SUBJECT: New Dundee Road Local Improvement
RECOMMENDATION:
That a By-law to undertake the construction of a sanitary sewer and watermain on
New Dundee Road, Regional Road 12, From Pinnacle Drive to 100m east of Robert
Ferrie Drive, as a local improvement with petition in accordance with O.Reg. 586/06
be approved in the form shown attached to staff report DSD-2025-080; and,
That the General Manager of Development Services be authorized to approve and
execute any agreements required to implement the local improvement project to
construct a sanitary sewer and watermain on New Dundee Road as described in staff
report DSD-2025-080, to the satisfaction of the City Solicitor.
REPORT HIGHLIGHTS:
The purpose of this report is to seek authorization to proceed with a resident initiated
local improvement to be undertaken by the City of Kitchener under O.Reg 586/06 for
the construction of a sanitary sewer and watermain along New Dundee Road (Between
525 New Dundee and 375 New Dundee).
The key finding of this report is there is adequate support from the benefiting properties
for the City to install sanitary and water servicing with full payback from the properties
The financial implications are that this project is initially funded by the City with payback
from the benefiting properties
Community engagement included a resident led petition and City notification to the
properties within the local improvement area
This report supports the delivery of core services.
BACKGROUND:
Ontario regulation O.Reg. 586/06 Local Improvement Charges is a regulation that covers
work, such as sanitary servicing, that would otherwise be privately completed to be
completed by the municipality with no financial burden to the municipality, as the work is
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funded by the benefiting property owners. A local improvement is typically petitioned for by
benefiting residents and requires support from two-thirds of the impacted properties and that
support must represent more than 50% of the total assessed property value of the properties
included in the local improvement.
A local improvement, including construction and engineering costs, is wholly funded by the
benefiting properties with cost dispersed based on frontage of each property. A cost
estimate was included in the petition, and final costs will be determined through a Region of
Waterloo tender. The Region of Waterloo is undertaking a reconstruction of this section of
New Dundee Road in 2025.The sewer and watermain will be installed through this tender.
The project is funded by the City, and all costs are recovered from the benefiting properties.
Property owners can elect to pay the balance through their annual tax bill and take up to 10
years to pay this with an annual interest charge.
A resident-led petition for local sanitary service along a portion of New Dundee Road was
initiated in the fall of 2024. The City carries the responsibility to review the request to
determine the limits and scope of the request. Once received, the City evaluated the request
to determine that it was technically, administratively, and economically feasible.
a) The City determined feasibility based on catchment wide analysis and can confirm
that there are no detrimental impacts to public or private property.
b) The City has determined that the project is economically feasible and the addition to
the Regional contract is economically efficient. Staff have also determined that there
is adequate funding available to complete the project.
c) In approving the petition, staff determined the logical project limits of the project
(based on the system design requirements and a cost benefits analysis (entire
street/sector, etc.).
d) The feasibility assessment considered the number of properties that will be affected.
e) Staff circulated to the Region as regional roads are impacted to ensure that the City
can obtain the authority to undertake the work and to assess the feasibility.
f) The proposal for this local improvement is appropriate in the proposed area and will
be cost efficient, minimize disruption, and provides consistent levels of service to
adjacent properties.
New Dundee Road is located near the southern border separating Kitchener and North
Dumfries, located in Ward 4. Sanitary and water servicing is available in the area, but not
within this specific area. Properties within this area are either serviced by private well and
septic system or are vacant land.
The City will retain the same consultant who has completed the engineering design for this
work including application for permits on behalf of one of the property owners. This work
has included all preliminary investigation work such as geotechnical and hydrogeological
tender and engineering drawings. These costs will be re-imbursed in full by third parties, the
benefiting properties.
Staff are seeking council endorsement for a bylaw to accept this local improvement, to
support the reduction in special charges for specified properties.
REPORT:
New Dundee Road between Pinnacle Drive and Robert Ferrie Drive contains 12 properties
with frontage varying between 25 and 350m and has 9 registered owners. The segment
under consideration is approximately 750m in length.
A resident-led petition for local sanitary sewers was initiated in the fall of 2024. On February
4, 2025, the city received a completed petition. Regulations state that more than two-thirds
of the owners representing at least one-half of the value of the lots to be specially changed
are necessary to consider a petition to have been successful. This petition included support
by more than two-thirds of the property owners (9 in favour or 75%) and more than 50% of
the assessment value ($14,082,500 of a total assessment of $16,738,500 or 84%) of the
impacted properties. The properties included in the petition included 375, 398, 404, 410,
424, 425, 430, 448, 508, 583 Pinnacle Drive, 32 Ridgemont Street, and vacant Commercial
Land (New Dundee).508 New Dundee, 583 Pinnacle and the vacant Commercial Land
properties did not sign the petition.
The scope of the work will include the installation of a new sanitary sewer and new
watermain, with necessary infrastructure components and service connections where a
connection can be determined and/or is imminent. Service connections will be charged on
a per-lot basis.
Time is of the essence for this work,as the Region of Waterloo is undertaking a
reconstruction project in 2025 that includes road improvements along this section of New
Dundee Road. Including the sewer and watermain in this project will ensure timing
alignment, proper coordination between projects, cost savings, and efficiencies.The Region
of Waterloo is a willing partner to accommodate the installation of the servicing.
Following the approval of the by-law, staff will work with the Region to undertake the work.
It is acknowledged and anticipated that reduction in special charges will apply to various
properties within the Local Improvement Boundary at the discretion of the City Engineer and
in accordance with Ontario Regulation 586/06.
Following completion of the work, property owners will be issued a provisional invoice
summarizing the costs that associated to each property owner, based on the regulation and
benefits associated. Property owners will have the opportunity to appeal the initial
assessment to the Court of Revision, who will assess each appeal on their own merits. The
Court of Revision will issue decision, for final determination of associated costs, and staff
will then bring forward a Special Charges By-law with final Local Improvements Charges
which will then be directed to the tax roll. If no appeals are received, staff bring forward a
Special Charges By-
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget The recommendation has no impact on the Capital Budget.
Operating Budget The recommendation has no impact on the Operating Budget.
The project will be funded through Sanitary and Water reserves with full payback expected
within 10 years.
COMMUNITY ENGAGEMENT:
A resident led petition was completed by property owners to gauge if there was sufficient
interest in proceeding with this local improvement and formally submitted to the City.
Adhering to standard notification timelines, the City mailed and emailed (were email
addresses were provided through the petition) letters to each of the properties to notify them
of the next steps which includes notification of the February 24, 2025 committee meeting.
INFORM
the council / committee meeting.
APPROVED BY: Justin Readman, General Manager, Development Services
ATTACHMENTS:
Attachment A - Draft Bylaw
BY-LAW NUMBER
OF THE
CORPORATION OF THE CITY OF KITCHENER
(To authorize the construction of certain works on
New Dundee Road, Kitcheneras shown in
WHEREAS the Council of The Corporation of the City of Kitchener has received a
private petition in favour of undertaking the design,construction and installation of a
sanitary sewer and watermainon New Dundee Road between the properties municipally
addressed as 525 New Dundee Road and 375 New Dundee Road, pursuant to section 5
of Ontario Regulation 586/06 made under the Municipal Act, 2001, which petition has
been determined and certified by the Clerk to be sufficient;
AND WHEREAS the Council of The Corporation of the City of Kitchener has
determined that it is desirable that the design, construction, and installation of a sanitary
sewer and watermainon New Dundee Road between the properties municipally
addressed as 525 New Dundee Road and 375 New Dundee Roa (the , should
be undertaken as local improvements;
AND WHEREAS, a Work was
published on February 10, 2025 in the Waterloo Region Record, a newspaper having
general circulation, and in accordance with the requirements of 586/06;
NOW THEREFORE the Council of The Corporation of the City of Kitchener,
enacts as follows:
1. That it is desirable that the design, construction, and installation of a sanitary
sewer and watermainonNew Dundee Road between the properties municipally
addressed as 525 New Dundee Road and 375 New Dundee Roadshould be
undertaken as local improvements under the provisions of Ontario Regulation
586/06 made under the Municipal Act, 2001;
2.The estimatedcost of the Workis $2,440,126.00;
3. The owner cost of the Work is 100%;
4. The Citycost of the Work is 0%;
5. The final cost of the Work will be imposed by a special charge in accordance with
Ontario Regulation 586/06 by separate by-law; and,
PASSED at the Council Chambers in the City of Kitchener this
day of , A.D. 2025.
____________________________
Mayor
____________________________
Clerk
SCHEDULE A