Friday 28 February 2014

Costly 2013 J-Class Paving set for 2014 Repeat Performance

On December 3, 2013 Kings County Council voted 6 to 4 to spend approximately $1.2 Million dollars from “reserve fund funds” to cover 50 percent of the cost for paving subdivision roads---mostly in Kingston, Greenwood, Aylesford and Coldbrook. The province covers the other 50 percent of costs.

On February 4, 2014, a repeat performance was set in motion when municipal council approved the 2014 J Class Road Paving Priority List. Only three councillors voiced objections and voted against this (Bishop, Raven and VanRooyen).

By-law 50 clearly outlines to residents the procedure for paving of J-class roads. It stands unchanged, on the sidelines, now acting as little more than a monument to more equitable times in Kings County.

Until December 2013, with few exceptions, local improvement costs for the 50 percent not covered by the province had been charged to the homeowners of the subdivisions paved.  Between 1996 and 2011 scores of tax-payers paid out of their own pockets to pave their subdivision roads with a portion of the cost covered by the province, most usually on a 50-50 basis. Some financed their share through a 10-year payment plan offered by the county. They will continue to pay in the years immediately ahead.

It is also notable that any new subdivision developed since 1996 posts a bond for the roads that must be paved which is not released until paving occurs. The charges related to that paving are then covered by those purchasing lots or homes in the subdivision.

What happened at the December 3, 2013, council meeting, in essence, gave “free paving” to those living along this particular group of roads totalling 15-kilometres.  I found both the process and decision arrived at highly problematic. Of great concern was the fact that most councillors at the horseshoe gave no substantive indication of why they voted as they did despite the fact that they were voting on a $1.2 million dollar item.

I posted much of what follows on December 6, 2013, as an explanation of why I voted as I did. For me that decision was not only about roads. It was more important than that. It was about fairness and the responsible use by council of the scarce resources entrusted to us by taxpayers from one end of this county to the other.

Interestingly, it now appears that some Coldbrook homeowners who did pay for paving are looking for a refund. I have had contact with residents from Natalie Street in Centreville who are also interested in whether its possible to get a refund. 

This history of J-class “happenings” and motions as I have experienced, or researched, them since being elected as District 3 Councillor in October 2012, may be helpful to those sharing my position that it is grossly unfair that many citizens have paid, or are still paying (if they had to set up a payment plan with the county) for pavement in their subdivision while others are being provided with paving free of any charge. This cost-sharing by home-owners and the province with municipalities providing only financing to homeowners as required is the generally accepted practice in other jurisdictions across Nova Scotia.

I was shocked on December 3, 2013, when a motion to not charge a local improvement charge was quickly put on the table and seconded, despite the fact that a very similar motion had been tabled and rejected in September.  Further, a referred motion from that same date in September, that I argued should have been returned to the table first, was not given the requested preference by the chair. That motion would have provided a fair and flexible payment plan where the county paid for some paving on roads (those where more through traffic was evident) while homeowners paid for the remaining more private roads. I recently read a reference to the strategic use of procedure by renowned Canadian parliamentarian Eli Mina. He points out that through “procedural trickery” a boost can be afforded to “certain causes” while blocking others.

A “two-pager” is usually how I try to clear my head on complex issues that are taking unexpected twists and turns at the council table.  This is much longer than that! But by the time I had tracked all the twists and turns to bring my position into as clear a focus as possible several pages had been filled. Now that we are looking at a repeat performance I am reposting my blog of December 6, 2013, with updates to the end of February 2014.

Fairness

Kings County home-owners have paid considerable amounts to have their subdivision roads improved under By-law 50.

Most usually, local improvement charges have been done after a successful petition. Charges paid by homeowners to date are in the range of $1.094.52 to $3,318.56 or by frontage… $3.67 to $19.08 per foot.

Some home-owners have also paid interest on a 10-year plan at an annual rate of 8 percent to make the paving of their subdivision roads affordable to their household.

Some are still paying for roads paved in 2007, year-by-year, through the Municipality of Kings finance department.

By my estimate, based on the number of roads paved to date, 100s of homeowners have paid out of their own pockets for paving in their subdivision under Bylaw 50.

On the other hand, homeowners on a few roads eligible for upgrading under Bylaw 50 have been exempted from local improvement charges. 

Most notably, at a special meeting of council (September 22, 2009), homeowners on Oak Avenue and Fales River Road, Kingston, were exempted from contributing from local improvement charges. No reason is recorded in the minutes.

ON MOTION OF DEPUTY WARDEN BROTHERS AND COUNCILLOR HALL, MUNICIPAL COUNCIL ACCEPTS THE RECOMMENDATION OF THE EXECUTIVE COMMITTEE AND APPROVES THAT THE RESIDENTS OF OAK AVENUE AND FALES RIVER ROAD BE EXEMPT FROM CONTRIBUTING TO THE RE-PAVING OF OAK AVENUE AND FALES RIVER ROAD AS DESCRIBED IN BY-LAW 50-STREET SURFACING BYLAW, APPROVAL THAT THE FUNDING MODEL DESCRIBED ABOVE BE USED FOR PROCEEDING WITH THE RE-PAVING OF OAK AVENUE AND FALES RIVER ROAD, AND FURTHER, APPROVAL TO PROCEED WITH FURTHER CONTRACT ADMINISTRATION FOR POTENTIAL AWARD DURING OCTOBER COUNCIL. MOTION CARRIED. [Exerted from official minutes]

It appears to me that it was after these exemptions in Kingston that By-law 50 petitions started to routinely fail. From the information available we see that:

·       A total of 46 Bylaw 50 petitions were completed between 1996 and 2011.

·       A total of 28 Bylaw 50 petitions were successful.

·       Of the 18 failed petitions --- only 1 failed prior to 2009.

Did the 2009 exemption of local improvement costs for Oak Avenue and the Fales River Road have an impact on the success rate following that decision of council?

Procedure

Time was not on our side.  The season was advancing and temperatures were soon to be unfavourable for paving activities. From the beginning of this project we had to decipher if it would be possible for council to apply a local improvement charge after paving has been completed and/or without a petition.  Throughout the process we were assured by staff that these issues were surmountable.  That is, council did have the option to move forward without petitions and the ability to apply a local improvement charge to homeowners.

Is a petition an essential factor? Another way to address this was to uncover if any roads had previously been paved under By-law 50 without a petition being completed. 

I found an answer to that in a second report prepared by the CAO at the request of council (in response to unanswered questions I was seeking that had not been forthcoming). This second report included a listing of 6 roads paved in 1999 under Bylaw 50 where a petition was not held.  These roads were in 3 districts: 4 in Greenwood; 1 in New Minas; and 1 in Port Williams.

Unfortunately, information regarding whether or not a local improvement charge was paid by homeowners on these roads was missing.

Applying a local improvement charge post paving.  Moving boldly forward, council permitted paving of this 15-K set of roads prior to a decision being made about how much homeowners would pay.

At all points along the way staff indicated timing wasn’t a factor. Council was told by our CAO that charges could be applied after the fact: Once drafting and approval of a by-law concluded. But there was always a shadow over how actionable such an application of costs would be without any prior notice.

This was most strongly indicated in staff report dated September 3, 2103.

Option 2 submitted by staff was to: "direct staff to draft a bylaw for first reading which would allow the Municipality to recover the Municipal cost portion of the 2013 J Class Paving Project, without the requirement for a successful petition.”

So in the end we see that: 

·       With few exceptions, roads eligible for paving under By-law #50 are paid for, with a 50% contribution from the Province of Nova Scotia, and a 50% local improvement charge covered by homeowners on the street.

·       Petitions are the usual starting point for action on a road in need of paving, but there are a few exceptions to that as well.

·       To date, hundreds of homeowners have paid local improvement charges, often well over a $1000 per household, and some home-owners are still paying.

·       Since 1996 every home owner in a new subdivision pays for the compulsory paving of their streets.  Again, thousands of their own household dollars.

Taking all that into consideration my conclusion is that:

·       It is not equitable to exempt some home-owners from charges for road paving: 100s of homeowners have already paid for their paving. Homeowners in new subdivisions pay for their paving.

·       Council has the right and duty to apply a local improvement charge to all home-owners enjoying the benefits of paved roads

Heading into the December 3, 2013, council meeting where the decision took place to not charge homeowners anything for the recent paving of their subdivision, I leaned strongly toward Option 3 that was recommended by motion on September 3, but referred to a subsequent date.  That option provided some relief to homeowners for roads that are of a more generalized public use (usually at the entrance of subdivisions).

Ongoing costs. The decision to pave at no cost to home-owners in subdivisions is in my opinion unsustainable without increasing the tax rate, or decreasing over services.  The December 3 decision set a precedent for the future costs of improving roads in subdivisions to be paid for by the municipality until all J-class roads could be paved.  The February 2014 approval of the next set of J-class roads to be paved is in my opinion a continuance of the “no-cost subdivision paving” decision made in December 2014.

To date this council has not set corporate spending priorities for infrastructure renewal and I for one anticipate great challenges ahead as we move toward approval of the 2014-15 budget with several anticipated increases. For example, Valley Waste (about 19%); Fire Services (4%); and infrastructure renewal for sewer and water that we are already very much fiscally under-prepared.

THE DECISION MADE BY COUNCIL ON DECEMBER 3, 2013, IS, IN MY OPINION AKIN TO A HOME-OWNER PAVING THEIR DRIVEWAY WHEN THEY KNOW THE SEPTIC TANK OR WELL IS LIKELY TO FAIL IN THE YEARS IMMEDIATELY AHEAD, WHILE THERE IS VERY LITTLE MONEY IN THE HOME-OWNERS BANK ACCOUNT.  

I was interested to hear a robust, detailed debate from those councillors in favour of charging the paving of these roads to the general tax-payer versus the home-owner who, under By-law 50, could have been made accountable for such costs. Several councillors were mute on this important issue. If February 4, 2014, is any indication, as we move into this year's J-class paving, council’s opposition to continued paving for free may have diminished even further. Approval of the 2014 list passed with an 8 to 3 majority.

Other Issues

For me, there were also issues related to the list of roads approved on August 13, 2013, and I voted against that list based on the lack of information and clarity about the selection process. That lack of clarity was repeated with the list presented for approval on February 4, 2014.

It is notable that two meetings between council and the Department of Transportation and Infrastructure Renewal were scheduled and cancelled in 2013.

Other Issue Transparency of Selection Process


 
2013: As noted above council was to have met to discuss the selection of roads. The July 26th meeting of councillors with DTIR was cancelled due to the need for more work by staff on the scoring system. The August 9th meeting of councillors with DTIR was cancelled too… in lieu of a presentation at COTW with DTIR in attendance. Councillors were assured that selection was fair/non-political and based on assessments of needs and efficacy determined by consultation and discussion between MOK and DTIR. Yet, several roads with high scores in terms of poor conditions were not prioritized while roads with very low scores were.
 
While much was circulated in 2013 about Bylaw #81… And significant time was given to its discussion on September 3, it is important to note that none of the roads in the 2013 project are governed by By-Law #81.





2014: The list of all j-class roads circulated by staff to councillors in advance of decisions included roads that were, in fact, not J-class roads and/or not eligible for paving because they had been previously paved but not to provincial standards. The list circulated in advance differed from the list used in chambers by staff (because in the interim new priorities had come forward). As well, there had not been any open solicitation for councillors to identify roads in need of attention.

J-Class Motions Jan 2013-Feb 2014

 

15-Jan-13
Motion approved: Approve Fales River Subdivision as the 2013/14 priority for chip-sealing under the J-Class Road Paving Program.
Unanimous
16-Jul-13
Motion Approved: direct the CAO to review bylaw #50 and provide recommendations on methods through which the County can finance its portion of the cost for J-Class roads and treats all residents equitably in roads rehabilitation
Unanimous
16-Jul-13
Committee of the Whole recommend that Municipal Council: approve for the Warden to write a letter to the deputy Minister of Transportation & Infrastructure Renewal requesting they earmark one-million dollars under the J-Class roads program for the 2013/2014 year for the County of Kings.
No Vote Recorded in Minutes.
13-Aug-13
Motion approved: Approve, under the J Class Paving Project 2013, to pave the roads as presented to COTW August 13, 2013.
 
Discussed: issues regarding deciding on the list of roads to pave prior to deciding on policy and funding; need to address policy issues prior to committing to funding; need to address other pressing matters with funding, including aged infrastructure.
 
For (7): Ennis. Winsor. Best. Lloyd. Atwater. Hirtle. Brothers.
Against (3): Bishop, Raven, MacQuarrie.
Abstain (1). VanRooyen.
3-Sep-13
Motion approved: Direct the CAO to execute the notice of acceptance and return to the Minister, with the funding method to be determined by Council.
For ():
Against (3): MacQuarrie. VanRooyen. Bishop.
3-Sep-13
Motion defeated: Approve utilizing $545,000 of current year forecasted surplus and transfer $567,000 from the General Capital Reserve to fund the J class Road paving list as approved at the August 13, 2013 Council.[This was option 1].
 
For (4): Atwater. Brothers. Winsor. Ennis.
Against (7): MacQuarrie. VanRooyen. Raven. Hirtle. Lloyd. Best. Bishop.
3-Sep-13
Motion defeated: Approve option #4.[This was the option "Do not continue with 2013 J class project]
 
 
For (4): MacQuarrie. VanRooyen. Brothers. Bishop.
Against (7): Raven. Atwater. Hirtle. Lloyd. Best. Winsor. Ennis.
3-Sep-13
Motion referred:
On motion of Councillor Raven and Councillor Hirtle, that Municipal Council approve option 3.
 
Motion approved: Refer the discussion of option three and any other options to a meeting no later than the middle of October.
 
Option 3 outlined a flexible cost recovery: "approve utilizing $312,000 of the forecasted surplus to fund the J Class Road paving list as approved at the August 13, 2013 Council. Direct staff to draft a by-law for first reading which would allow the Municipality to recoup the remaining Municipal cost of $800,000, regarding the 2013 J Class Paving Project, without the requirement for a successful petition.
 
Option 2 was to "direct staff to draft a bylaw for first reading which would allow the Municipality to recover the Municipal cost portion of the 2013 J Class Paving Project, without the requirement for a successful petition. 
For (8): Raven. Hirtle. Lloyd. Best. Winsor. Ennis. Brothers. VanRooyen.
 
Against (3): MacQuarrie.  Atwater. Bishop.
 
 
15-Oct-13
Motion approved: Refer this item to the CAO until Council has the answers to Councillor Raven’s questions, to come back to Council at the November Committee of the Whole.
Against (5). Atwater. Brothers. Lloyd. Best. Ennis.
 
For (6). MacQuarrie. VanRooyen. Raven. Hirtle. Bishop. Winsor.
15-Oct-13
Motion approved: Receive the J-Class Roads petition.
[From Kingston].
For (10). MacQuarrie. VanRooyen. Raven. Hirtle. Brothers. Lloyd. Best. Bishop. Winsor. Ennis.
Abstain or missed (1): Atwater.
12-Nov-13
Not motioned.  Set a Special Council Meeting to discuss J Class Roads. Tom MacEwan commented that a Special Council or Special Committee of the Whole meeting could be held to discuss J Class Roads.
 
Council decided to discuss J Class Roads at the beginning of the December 3, 2013 Council meeting before the Planning items.
 
3-Dec-13
Motion approved: Fund costs associated with the 2013 J Class Road Paving Project entirely ($1.2 million) from the reserves identified by Staff.
For (6): Ennis. Best. Lloyd. Atwater. Hirtle. Brothers.
Against (4): Bishop. Raven. VanRooyen. MacQuarrie.
Absent (1): Winsor
4-Feb-14
Motion Approved: That Municipal Council approve the 2014 J Class Road Paving Priority List as circulated.
For (6): Ennis. Winsor. Best. Atwater. Hirtle. MacQuarrie. Brothers.
Against (3): Bishop. Raven. VanRooyen.
Absent (1): Lloyd

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