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TO: |
Mayor and Members of Council |
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FROM: |
Alan
Brown, Director of Engineering |
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PREPARED BY: |
same as above |
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DATE OF MEETING: |
2003-Jun-17 |
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SUBJECT: |
Utility Coordination |
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RECOMMENDATION:
That staff be authorized to utilize the Utility
Procedures Manual for the management of utilities in Markham;
And that staff be authorized to update the
Utility Procedures Manual, as required, in consultation with the York/Durham
Municipal Coordinating Group, Utility Companies and the Urban Development
Industry;
And that the Mayor and Clerk be authorized to
execute Municipal Access Agreements with utility companies for a 5 year term to
the satisfaction of the CAO and Town Solicitor;
And that in accordance with the Markham Core
Services Review, responsibility for the management of utility coordination and
municipal access agreement be transferred from the Engineering Department
(Development Services Commission) to the Operations and Asset Management
Department (Community and Fire Services Commission).
EXECUTIVE SUMMARY:
York
and Durham Regions and area municipalities have completed a three (3) year
exercise in preparing a Utilities Procedures Manual to assist municipalities,
utility companies and the development industry in documenting a model process
for the management of right of ways with respect to utilities. Staff are seeking authority to utilize the
procedures manual for the management of utilities in Markham, and to have the
duration of municipal access agreements extended from a 1 year to a 5 year
term. In addition, staff are advising
Council of the consolidation of the management of utility coordination in
accordance with the Core Services Review.
BACKGROUND:
Recent changes to the Telecommunication Act and
Ontario’s Energy Act required the industry and municipalities to review their
current policies and procedures in respect to approvals, standards and fee
assessment.
York and Durham Regions and area municipalities
have jointly undertaken a review of current practices/policies and prepared a
Utility Procedures Manual in consultation with the utility & development
industry.
In 2000 York and Durham Regions and area Municipalities facing identical issues formed a Utility Coordination Group whose mandate was to;
Four sub-groups were formed to focus
discussions and develop polices on the following issues;
A detailed outline of the mandate of this group
is attached (Attachment ‘A’).
During the process the Municipal Utility
Coordination Group (MUCG) has worked with the Utility Companies and the
Development Industry to develop policies and procedures. There are still outstanding issues as far as
some Utility Companies are concerned (i.e. Bell, Rogers, Enbridge Gas) and a
further meeting was held June 12, 2003 with the Municipal Utility Coordination
Group (MUCG) to hear their concerns.
The manual itself is viewed as a living document, which will be updated
by the MUCG as required in consultation with the various stakeholders. The MUCG are satisfied that the document in
its current format is substantially complete and should be utilized by
municipalities and the development industry.
The purpose of the manual is;
- Establish common policies and
procedures across larger jurisdictional boundaries so as to facilitate a
coordinated road authority response to similar requests for approval of utility
installations;
- Guide Road Authorities with the
review, approval and inspection of proposed utility plant installations;
- Guide Road Authorities with the
development of fee schedules for the recovery of costs.
- Provide Utilities with submission,
notification, construction, and certification requirements for proposed utility
plant installations;
and
- Provide a framework for the operation
of interregional, MUCG and local Utility Coordinating Committees.
At the request of utility companies, the manual has included guiding policies, which set the framework for the manual and obligations of both the municipalities and utilities.
As
the manual is extensive a summary is enclosed as Attachment ‘B’.
There was unanimous consensus of the York and Durham Regions and area municipalities that the Municipal Utility Coordination Group (MUCG) continue to deal with larger policy issues. Individual municipalities will have utility coordinating committee meetings with the various utilities to deal with special issues and projects in the municipality.
Municipal Access Agreements
Currently Markham has Municipal Access Agreements (MAA) with Bell, Rogers, Enbridge Gas, ATT, Telus, 360 Networks and Canada Post. Negotiations are underway with Markham Hydro on both a MAA and a Maintenance Agreement for the Town Illumination System.
Due to the uncertainty with the deregulation of the telecommunications industry, Council in 1996 required Municipal Access Agreements to be for a one (1) year duration. With the completion of the Procedures Manual and resolution of a number of issues at the CRTC, staff recommend the term for all future agreements be for a five (5) year term. A sample MAA has been included in the Procedures Manual as a basis for municipalities to negotiate with the utility companies.
Core Services Review
Currently utility coordination and approval is dispersed amongst the corporation as follows;
Engineering - Policy development
- Markham representative at Municipal Utility Coordination Group
- Municipal access agreement preparation
- Composite utility plans approved for new development
Operations and Asset Management - Review and approval of utility permits in existing right of
ways
- Markham representative and chair of the local utility coordinating committee
Planning - Review and comment on applications for
Telecommunication Towers
Property Management - Coordinates requests for utilization of Town
properties for utility purposes
As recommended by the Core Services review, current Engineering Department responsibilities are to be consolidated under the Operations and Asset Management Department. This consolidation will provide efficiencies in the management of our Right of Ways and utilities. The Engineering Department will continue to approve Composite Utility Plans as part of their engineering works approval for new development. Further discussion re possible future consolidation with Planning Department, Property Management and resource requirements is needed.
Cost Recovery
Fees currently assessed utility companies (Bell, Rogers, ATT, Telus, 360 Networks) through their permit and municipal access agreement generate ± $70,000/year. In addition Enbridge Gas pays to the Town of Markham an annual tax based on their infrastructure of $91,000 (2002). Markham currently does not assess Markham Hydro a fee for the permit approval and inspection time it provides. This issue is to be reviewed along with Markham Hydro current service delivery of our illumination system. The above fee and taxes are collected on the basis that Markham staff are to provide certain services (approvals, inspections, administration etc.). Even with the efficiencies associated with consolidation, additional resources to the existing 1FTE dedicated to utility coordination will be required to provide minimum level of service to both the utility industry and the public in the future. The Operations and Asset Management Department intends to submit a business case for additional future resources funded by utility fees.
FINANCIAL CONSIDERATIONS:
None at this time.
BUSINESS UNITS CONSULTED AND AFFECTED:
The
Operations and Asset Management Department and Core Services Team have reviewed
this report and concur with its recommendations.
ATTACHMENTS:
Attachment
A – Mandate
Attachment
B – Executive Summary
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Alan Brown, C.E.T. Director of Engineering |
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Jim Baird, M.C.I.P., R.P.P. Commissioner of Development Services |
____________________________________ ____________________________________
Peter Loukes, P.Eng Jim
Sales,
Director of Operations and Asset Management Commissioner of Community Services
