REPORT TO GENERAL COMMITTEE-Finance & Administration
TO:	Mayor and Members of Council
FROM:	Steve Andrews, P. Eng., Director of Asset Management
PREPARED BY:	Stan Lau, Senior Project Manager
DATE OF MEETING:	February 20,2006
SUBJECT:	Milmar Court Sanitary Sewer System

RECOMMENDATION:

THAT the report entitled “Milmar Court Sanitary Sewer System” be received;

AND THAT the Asset Management Department be authorized to proceed with tendering of the Milmar Court Sanitary Sewer System in March 2006;

AND THAT when the tender price is known, the residents of Milmar Court be advised of the total project cost for their decision whether to proceed with construction of this project;

AND THAT the Asset Management staff report back the resident’s decision and staff recommendation;

AND FURTHER THAT if the Milmar Court Sanitary Sewer System is to proceed, the total project cost be front-ended by the Town and recovered by imposing an equal fee against the six property owners abutting the works in accordance with Section 391 of the Municipal Act;

PURPOSE:

The purpose of this report is to obtain Council authorization to tender the proposed Milmar Court Sanitary Sewer System in March 2006.

BACKGROUND:

Milmar Court is a small cul-de-sac south of John Street and west of German Mills Road (Attachment “1”). It has a total of eight houses built on large sized lots. Because of the area’s geography, these houses are served only by municipal water and individual septic system, except the two houses (#1 and #4) abutting German Mills Road that are connected to the sanitary sewer on German Mills Road.

Most of the septic systems in this cul-de-sac are more than 25 years old and some have experienced failure. In early 2004, residents requested the Town to investigate the feasibility of installing a sanitary sewer system to serve the area. A site meeting with the owner of #7 attended by Deputy Mayor Scarpitti, Shelia Birrell and Stan Lau was held on August 4, 2004 to review the resident’s concerns. It was agreed that the Town will investigate the possibility of installing a gravity sewer on Milmar Court to connect to the existing sanitary sewer on German Mills Road, with the understanding that the residents will pay the full cost.

Expression of Interest

An “Expression of Interest to Install Sanitary Sewers on Milmar Court” dated October 1, 2004 was received by the Town. It was signed by 5 out of the 6 property owners that are still served by septic system (# 6, 7, 9, 11 and 15. Owner of #10 did not sign). The residents requested that the Town install a sanitary sewer on Milmar Court so that the existing septic systems can be abandoned. The residents also acknowledged that they are required to pay for the full cost of the work.

Detailed engineering survey and design revealed that it is feasible to install a gravity sewer to serve the main floor of #6, 7, 9 and 11 and to serve # 10 and 15 by grinder pump systems (Attachment “2”).

Meeting with Residents

A meeting with the residents of Milmar Court, attended by Deputy Mayor Scarpitti, Councillor Erin Shapero, Catherine Conrad, Peter Loukes and Stan Lau was held on May 25, 2005. The preliminary design drawing, cost estimate, funding, method of cost sharing, and method of payment were presented to the residents in the meeting. Residents were advised to submit a formal request to the Town to initiate the installation of the sanitary sewer which was done in November 2005. (Attachment “3”)

• Estimated Cost

Total project cost is estimated at $150,000. This includes the cost of construction and engineering fees. This does not include the cost of connection on private property.

• Funding

If approved by Council, the Town will front-end the project cost with funding from the Reserve and recover the cost from the six property owners.

• Method of Cost Sharing:

Resident may request the Town to proceed under the Local Improvement Act or under Section 391 of the Municipal Act.

Under the Local Improvement Act, cost sharing will be based on the length of frontage of each property.

Under Section 391 of the Municipal Act, the project cost could be equally shared by the six property owners for approximately $25,000 each.

• Method of Payment

If approved by Council, residents may pay back the Town for their share of cost by one-time lump sum payment or by instalment over a 10-year period on their tax bill with interest payable at the 10 Year Region of York Debenture Interest Rate.

Residents were advised to submit a formal request to the Town to initiate the installation of the sanitary sewer.

OPTIONS/DISCUSSION:

A “Request for Construction of Sanitary Sewer” form signed by four (4) property owners of Milmar Court was received by the Town in November 2005. The residents request the Town to proceed with the installation of sanitary sewer under Section 391 of the Municipal Act and acknowledge the estimated project cost of approximately $150,000 or $25,000 per lot (Attachment 4).

One of the property owners who has not yet signed the form requested that, prior to his decision to participate, the Town is to provide:

1. A firm cost estimate for the project;
2. Confirmation which homes along Milmar Court are currently connected to the existing sanitary sewer;
3. A method to reimburse the original owners in the event of additional connections to the system in the future.

Since the preliminary cost estimate was prepared in early 2005, and based on the final design and latest information, the cost of construction is likely more than the original estimate. It is therefore recommended that a public tender be called so that a firm cost estimate can be obtained and provided to the residents for their final decision whether to proceed with the project.

When the decision of the residents is known, staff will report back with recommendation for Council’s final approval and award of contract, if applicable.

FINANCIAL CONSIDERATIONS:

If the Milmar Court Sanitary Sewer System is to proceed, the total project cost will be front-ended by the Town’s reserve and recovered by imposing an equal fee against the six property owners abutting the works in accordance with Section 391 of the Municipal Act

ENVIRONMENTAL CONSIDERATIONS:

By eliminating the existing septic system and replacing with the sanitary sewer system, the potential of spillage of raw sewage into the nearby German Mills Creek will be avoided and enhance the overall environment.

ATTACHMENTS:

Attachment 1: Site Plan

Attachment 2: Proposed Sanitary Sewer System

Attachment 3: Expression of Interest to Install Sanitary Sewer on Milmar Court

Attachment 4: Request for Construction of Sanitary Sewer

Steve Andrews, P. Eng. Director of Asset Management

Jim Sales Commissioner of Community and Fire Services

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