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PURPOSE:

The purpose of this report is to:

• (a)    seek Council approval for the CAO to finalize the negotiation with the Region of York, 605918 Ontario Limited and the Markham Stouffville Hospital as to the cost sharing for the construction of approximately 1,100 meters of storm sewer on 9th Line and within the Lindvest draft plan to Pond A in the Cornell Community, (see Attachment ‘A’),

• (b)   authorize the Mayor and the Clerk to execute a Cost Sharing Agreement with the same parties in order to secure the construction of the storm sewer,

• (c)    grant 200 units of servicing allocation in stages to the Cornell Landowners Group and/or Lindvest in return for Lindvest by the Town’s share ($0.8 million to $1 million) and at least fifty (50%) of Markham Stouffville Hospital’s share (Hospital total share: $0.4 million to $0.6 million) of the construction of the 9th Line storm sewer;

• (d)   authorize the CAO to execute the necessary Memorandum of Understanding with the Cornell Landowners Group and/or Lindvest related to the financing of the 9th Line storm sewer and servicing allocation, and

• (e)    request the Region of York to fund 50% of the Markham Stouffville Hospital’s share.

BACKGROUND:

As part of the Region’s contract to widen 9th Line from Highway 407 to Rose Way (north of Hwy 7) the Region has to construct a storm sewer within 9th Line to convey both minor and major flows from the drainage area to a stormwater management pond north of Highway 407.  This drainage area includes major and minor flows within the 9th Line right-of-way (7 ha), major and minor flows from part of Markham Stouffville Hospital lands (7 ha), major and minor flows from 605918 Ontario Limited land (a Cornell developer) (7 ha) and major flow only from an existing residential community west of 9th Line and north of Highway 7 (56ha).

In a report to General Committee on June 19, 2006 entitled “Highway 7 and 9th Line Reconstruction”, Council requested that the Region of York defer the reconstruction and widening of the 9th Line from Highway 407 to approximately Rose Way to the 2007/2008 construction season and that the Region work with the Town to resolve the drainage and cost sharing issues.  The Region has assumed jurisdiction of this section of Highway 7 in March 2007 and its current policy does not allow storm runoff over a 5 year storm event to flow overland across Highway 7.  This requires storm runoff from the drainage area north of Highway 7 to be piped under Highway 7 to an existing stormwater management pond in Cornell (Pond A).  This sewer will run from just north of Highway 7 within the 9th Line right-of-way southerly to approximately Kenilworth Gate and then will turn east towards Pond A within Lindvest Phase 2 subdivision as per Attachment ‘A’.

At the time of the June 2006 report, it was estimated (for the existing residential community west of 9th Line and north of Hwy 7) that the total cost of the sewer would be $3 million with the Town’s share being $1.3 million and the Markham Stouffville Hospital’s share about $0.5 million.  Council advised the Region that the costs for the Town and the Markham Stouffville Hospital are not acceptable and alternative options must be considered to reduce the Town’s financial obligation which has to be funded from the tax base.  Accordingly, the Region deferred the widening of 9th Line and the construction of the sewer until the drainage and funding issues are resolved.  The estimates for the Town’s and Hospital’s share have since changed with more updated analysis.

Timing of Construction

The timing of the storm sewer is critical as it affects the timing of the widening of the south portion of 9th Line (from north of Highway 7 to Highway 407), and the timing of the construction of Lindvest Phase 2.  With the Region deferring the construction of the south portion of 9th Line to 2008, the critical path is the construction of the section of sewer adjacent to the Lindvest Phase 2 residential units.  The construction of these residential units started last fall and will be ready for occupancy by late spring.  The construction of this section of sewer within Lindvest land should commence as soon as the Memorandum of Undertaking is signed.