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Home My Public Portal About2018-06-21_COW_Public Agenda PackagePage 1 of 1 of Agenda Cover Page(s) Committee of the W hole AGENDA Thursday,June 21, 2018 Chester Municipal Council Chambers 151 King Street, Chester, NS 1.MEETING CALLED TO ORDER. 2.APPROVAL OF AGENDA/ORDER OF BUSINESS. 3.PUBLIC INPUT SESSION (8:45 A.M.–9:00 A.M.) 4.MINUTES OF PREVIOUS MEETING: 4.1.Committee of the Whole –June 7, 2018 5.MATTERS ARISING. 6.POLICY DEVELOPMENT/REVIEW: 6.1 Request for Decision prepared by Administration dated June 14, 2018 regarding Water Supply Upgrade Lending Program By-Law. 7.CORRESPONDENCE: 7.1 Presentation from NOW Lunenburg County to discuss reliable, affordable accessible internet for all in Lunenburg County . (appointment at 9:00 a.m.) 8.NEW BUSINESS. 9.IN CAMERA: 9.1 Contract Negotiations –Section 22(2)(e) of the MGA –Rural Highspeed Internet. 10.ADJOURNMENT. APPOINTMENT 9:00 a.m.Tina Hennigar,NOW Lunenburg County to discuss reliable, affordable accessible internet for all in Lunenburg County. REQUEST FOR D ECISION Prepared By:Jonathan Meakin, Strategic Initiatives Coordinator Date June 14, 2018 Reviewed By:Date Authorized By:Tammy Wilson, MURP, MCIP, CAO Date June 15,2018 CURRENT SITUATION Following direction provided at the May 3,2018 meeting of the Committee of the Whole, the draft Water Supply Upgrade Lending Program By-Law was amended as directed. The By-Law has also been reviewed by the Finance Department and the Municipal Solicitor, and subsequent amendments have been made as outlined in the summary below. As a reminder,a Water Supply Upgrade Lending Program By-Law is authorized by the Municipal Government Act,and enables the Municipality to provide financing to eligible property owners for the purpose of improving the supply of potable water to properties within the Municipality. RECOMMENDATION That the Committee of the Whole review the draft Water Supply Upgrade Lending Program By - Law, along with the summary of amendments following review by the Finance Department and the Municipal Solicitor in this Staff Report, and make a Motion recommending the By-Law to Council for First Reading at the June 28, 2018 Council meeting. BACKGROUND Amendments to the Municipal Government Act introduced in November 2016 permit municipalities to provide homeowners with low interest loans to help with the upfront cost of water supply upgrades for qualifying properties. To date, two other municipalities (Municipal District of Argyle and the Municipal District of Yarmouth) have developed and adopted a Water Supply Upgrade Lending Program By-Law. The draft MODC Water Supply Upgrade Lending Program By-Law and Financing Agreement are modelled on these existing programs, but with some additional refinements that reflect Council’s program focus that supports well upgrades and cisterns and containers for storage, as well as Staff’s clarification of process and regulations. REPORT TO:Committee of the Whole SUBMITTED BY:Administration DATE:June 21, 2018 SUBJECT:Water Supply Upgrade Lending Program ORIGIN:Strategic Priorities 2 Request For D The MGA provisions for a Water Supply Upgrade Lending Program are: Power to expend money 65 The council may expend money required by the municipality for: (acb) providing for, financing and installing equipment, including containers, on private property for the purposes of the supply, use, storage or conservation of water; By-law regarding equipment charges 81A (1)The council may make by-laws imposing, fixing and providing methods of enforcing payment of charges for the financing and installation of any of the following on private property with the consent of the property owner: (b) equipment installed pursuant to an expenditure under clause 65(acb). The May 3, 2018 Committee of the Whole review of the draft Water Supply Upgrade Lending Program By-Law resulted in the following direction given and applied to the affected clauses as listed below.(Note:clause numbering reflects numbering in the current version of the By -Law.) Clause 2.5–Confirmation of a Maximum Eligible Amount Confirmation that the maximum eligible amount (or loan) be $10,000 per qualifying property. Clause 2.7 –Qualifying Property Definition Restricted to existing, already developed, owner-occupied single unit or two-unit residential property, or a building owned by not-for-profit organizations, located within the Municipality Clause 3.2.1 –Qualifying Property Owner Restriction. Restriction that Qualifying Property Owners not be in default of any municipal taxes, rates or charges, and has not been so for up to the past two years . Clause 3.2.5 –Affidavit Requirement Confirmation that the Qualifying Property Owner sign an affidavit certifying that a Water Supply Upgrade is necessary. Clause 4.5 –Event of Default Direction given that event of default should tie in to the MODC P-001 Tax Sale Policy. Clause 4.6 –Sale of Qualifying Property Direction given that when a Qualifying Property is sold to a new owner, the original Qualifying Property Owner must immediately repay the Water Supply Upgrade Loan in full. Clause 5.2 –Interest Rate Direction given that Director of Finance provide recommendation for t he interest rate to be applied to the Water Supply Upgrade Loan. Recommendation from Director of 3 Request For D Finance that the interest rate be Scotiabank’s prime interest rate at the effective date of the Financing Agreement. Administration Fee Direction given that no administration fee be levied for applicants to the program. DISCUSSION Feedback from the review by the Finance Department and the Municipal Solicitor resulted in the attached final draft of the Water Supply Upgrade Lending Program By-Law in preparation for Council’s First Reading.Significant changes made to the By-Law following this review are as follows: Clause 1.0 GENERAL Section added to provide contextual framework for the By-Law, including authorization through the Municipal Government Act. Clauses 3.4 to 3.6 –key steps of the financing process clarified and re-structure Clarification includes: o The loan is in the form of invoices paid by the Municipality up to the Maximum Eligible Amount o A lien is applied to the property as soon as the Municipality pays a Contractor invoice for approved Water Supply Upgrade costs. o Interest accrues 30 days after the Municipality pays any Contractor invoice o Loan repayment starts once the completed Certificate of Completion is received by the CAO. NOTE:Details concerning the approval of application, including eligibility of applicant, property, contractor, and planned work are administrative processes outlined in the Water Supply Upgrade Lending Program Financing Agreement and its Appendices. Clause 3.7 –Simplification of loan repayment schedule Simplification of loan repayment schedule options top monthly or annua lly over a maximum of 10 years. Clause 4.5 –Clarification of Event of Default Clarification and simplification of statement concerning event of default that refers to existing mechanisms and processes of MODC’s Tax Sales Policy and the MGA. 4 Request For D IMPLICATIONS Policy The development of a Water Supply Upgrade Lending Program By-Law. Financial/Budgetary Funds for the loan program will be borrowed from reserve and so do not impact the 2018-19 Budget. Council may wish to set the limit for the fiscal year. Previous amounts discussed were in the range of $100,000 to $200,000 for the first year, with a reassessment in subsequent years. Environmental The implementation of a Water Supply Upgrade Lending Program By-Law would support strategies outlined in the Integrated Community Sustainability Plan and the Municipal Climate Change Action Plan. Strategic Plan Ensure sufficient infrastructure is available to best serve our residents and businesses. Strengthen and support environmental,cultural, and social resources. Work Program Program Development: In addition to work done by the CAO Office and Finance Department, the Information Services Department will have program development tasks in needing to provide communications services.Promotion will include direct communication with residents who reported dry wells during the summer of 2016. Program Administration: For the Water Supply Upgrade Lending Program, the CAO/Administration Department and the Finance Department can expect to spend about five (5) hours in total per application/file. OPTIONS 1.That the Committee of the Whole make a motion recommending the Water Supply Upgrade Lending Program By-Law to Council for First Reading at the June 28, 2018 Council meeting. 2.That the Committee of the Whole return the draft Water Supply Upgrade Lending Program By-Law to Staff for further amendments. 5 Request For D ATTACHMENTS Water Supply Upgrade Lending Program By-Law VERSION 7 COMMUNICATIONS (INTE RNAL/EXTERNAL) Process for By-Law review, discussion, and adoption. Promotion of programs through external and internal communications channels. Municipality of the District of ChesterWater Supply UpgradeLending ProgramBy-LawBy-Law No.## Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 2 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – MUNICIPALITY OF THE DISTRICT OF CHESTER WATER SUPPLY UPGRADE LENDING PROGRAM BY-LAW BY-LAW ## 1.0 GENERALSections 65 (acb) and 81A(1)(b) of the Municipal Government Act (MGA)permits theMunicipality of the District of Chester to provide financing (in the form of low cost, up -front loans)to eligible property owners for improving the supply of potable water toproperties within the Municipality.Eligible properties include single or two-unit residential properties and propertiesowned by not-for-profit organizations within the Municipality. Owners of suchproperties are more likely to benefit from access to low-cost financing for improvementstoa potable water supply.Eligible Water Supply Upgrades include the construction of a new dug or drilled well, oran upgrade to an existing well required to source potable water for the property; theinstallation of equipment such as a well pump, a water line, and an electrical connectionto support the function of a new or upgraded well; and other equipment, such as cisternsand containers, to improve the supply, use, and conservation of potable water.Administrative and operational details in support of this By-Law are provided in theWater Supply Upgrade Lending Program Financing Agreement and its Appendices. 2.0 DEFINITIONS2.1 CAO means the Chief Administrative Officer for the Municipality, or her/hisdesignate.2.2 Contractor means an insured person or corporation licensed by the Departmentof Environment and retained by the Qualifying Property Owner to complete theWater Supply Upgrade.2.3 Director of Finance means the Director of Finance & Treasurer for theMunicipality, or her/his designate.2.4 Financing Agreement means the Water Supply Upgrade Lending ProgramFinancing Agreement, the written, signed agreement between the owner of a Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 3 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – Qualifying Property and the Municipality for financing of a Water SupplyUpgrade.(See Water Supply Upgrade Lending Program -Financing Agreement.)2.5 Maximum Eligible Amount means the maximum amount that the Municipalitywill lend to a Qualifying Property Owner for a Water Supply Upgrade.TheMunicipalityof the District of Chester’s maximum eligible amount is ten thousanddollars ($10,000.00).2.6 Municipality means the Municipality of the District of Chester, and includes itsemployees, agents, or designated third party contractor.2.7 Qualifying Property means an existing, already developed,owner-occupiedsingle unit or two-unit residential property, or a building owned by not-for-profitorganizations,located within the Municipality that meets the eligibility criteriafor participation in the Water Supply Upgrade Lending Program.Multi-unitresidentialbuildings with more than two units, new construction, andbusiness/industrial premises are not eligible for this Program.2.8 Qualifying Property Owner means the individual, individuals, or entity inpossession of the title for the Qualifying Property. The Qualifying Property Ownermay be responsible for paying taxes in relation to the Qualifying Property.2.9 Water Supply Upgrade means the construction of a new dug or drilled well, oran upgrade to an existing well required to source potable water for the property;the installation of equipment such as a well pump, a water line,and an electricalconnectionto support the function of a new or upgraded well;and otherequipment,such as cisterns and containers,to improve the supply, use, andconservation of potable water as required for the Water Supply Upgrade.2.10 Water Supply Upgrade Loan means the local improvement charge levied on theQualifying Property pursuant to section 81A of the Nova Scotia Municipal Government Act, and is equal to the value of the approved Water Supply Upgradeup to the Maximum Eligible Amount.2.11 Water Supply Upgrade Lending Program or Program means a programestablished by the Municipality under which Qualifying Property Owners mayobtain financing for construction of Water Supply Upgrades under the terms andconditions of the Financing Agreement. Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 4 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – 3.0 ADMINISTRATION3.1 A Qualifying Property Owner may apply to the Municipality for financing of aWater Supply Upgrade to a Qualifying Property within the Municipality.(See Water Supply Upgrade Lending Program -Registration Form and Checklist.)3.2 Lending shall be subject to the approval and agreement in writing of the CAO onbehalf of the Municipality,which shall be subject to the execution of a FinancingAgreementand the following conditions:3.2.1 the Qualifying Property Owner is not in default of any municipal taxes,rates or charges,and has not been so for up to the past two years;3.2.2 the proposed Water Supply Upgrade must comply with applicableprovincial and/or federal regulations;3.2.3 the proposed Contractor must have a valid Department of Environmentlicense to carry out a Water Supply Upgrade;3.2.4 compliance with other conditions as indicated in the FinancingAgreement;and3.2.5 an affidavit signed by the Qualifying Property Owner that certifies ,through a series of statements outlining the Qualifying Property’s potablewater issues, that the Water Supply Upgrade is necessary.3.3 The Water Supply Upgrade Loan may consist of:3.3.1 the cost of the Water Supply Upgrade and all associated labour costs,permit fees,and applicable taxes;3.3.2 interest charges, including any additional interest arising due to anydefault of payment.3.4 The Water Supply Upgrade Loan is provided for the benefit of the QualifyingProperty Owner in the form of the Municipality paying all eligible Contractorinvoicesfor completed work up to the Maximum Eligible Amount.The QualifyingProperty Owner will sign the Contractor’s invoices and submit them to theMunicipality for payment.As the Municipality pays the Water Supply Upgrade Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 5 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – invoices, the resulting loan amount advanced to date is a lien against theQualifying Property.3.5 Interest shall begin accruing on any approved Water Supply Upgrade invoice paidby the Municipality thirty (30) days from the date that the Municipality paid thatinvoice.3.6 The Water Supply Upgrade Loan shall become payable on the completion of thecontract for the installation of the Water Supply Upgrade in accordance with theFinancing Agreement and on the CAO’s receipt of the dated and signed Certificateof Completion.(See Water Supply Upgrade Lending Program -Certificate of Completion)3.7 The Qualifying Property Owner will make equal monthly or annual payments ofthe principal over a maximum period of 10 years to repay the outstanding WaterSupply Upgrade Loan,on which interest shall be payable as set out in theFinancingAgreement.3.8 The Municipality shall not be responsible for ongoing maintenance and operatingcosts of the Water Supply Upgrade. The Water Supply Upgrade is owned andmaintained by the Qualifying Property.3.9 The Director of Finance shall maintain a separate account of all monies due forthe Water Supply Upgrade Loan, identifying the following for the QualifyingProperty:3.9.1 the names of the property owners, assessment account number, PID,andcivic addresses;3.9.2 the original amount of the Water Supply Upgrade Loan advanced;3.9.3 the scheduled amounts paid to the Municipality to repay the Water SupplyUpgrade Loan,with principal and interest paid clearly distinguished;and3.9.4 an annual statement of account on the anniversary date of the WaterSupply Upgrade Loan, showing the principal balance owing at the end ofthe previous year, total amount paid during the year, amount of interestincluded in the payments, and the balance of the principal owing at theend of the year. Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 6 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – 4.0 LIEN4.1 The Water Supply Upgrade Loan advanced in the form of the Municipality payingthe Contractor’s invoices when submitted for payment shall become a lien leviedontheQualifyingProperty in accordance with the Nova Scotia Municipal Government Act.4.2 The Water Supply Upgrade Loan advanced pursuant to this By-Law constitutes afirst lien on the property and has the same effect as rates and taxes under the Nova Scotia Assessment Act.4.3 The lien provided for in this By-Law is effective on the date the Municipality paysanyContractor invoice for any portion of the approved Water Supply Upgradecosts.4.4 The lien provided for in this By-Law shall remain in effect until the total WaterSupply Upgrade Loan, including any accrued interest and administrative charges,has been paid in full.4.5 In the event of default, the Water Supply Upgrade Loan will be collected the in thesame way as overdue taxes in accordance with the Municipality’s Policy P-001 –Tax Sale Policy and the Nova Scotia Municipal Government Act.4.6 In the event the Qualifying Property is transferred to a new owner, the entireWater Supply Upgrade Loan amount becomes immediately payable to theMunicipality and shall be repaid in full, including accrued interest, by the originalQualifying Property Owner. 5.0 INTEREST5.1 Interest shall begin accruing on any portion of the Water Supply Upgrade Loanthirty(30) days from the date that the Municipality pays the Contractor invoicefor that portion.5.2 Interest is payable at Scotiabank’s prime interest rate at the effective date of theFinancing Agreement on the amount of the Water Supply Upgrade Loan deemedoutstanding. Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 7 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – Annotation for Official By-Law BookDate of First ReadingDate of advertisement of Notice of Intent to ConsiderDate of Second ReadingDate of advertisement of passage of By-Law *Date of mailing to Minister a certified copy of By-LawI certify that this Voting By-Law ##was amended by Council and published as indicatedabove _____________________________________P. M. Myra, Municipal Clerk Date*Effective Date of the By-Law unless otherwise specified in the text of the By-Law Water Supply Upgrade Lending Program By-Law ##(continued) Notice of Intention to Adopt –Council –Page 8 of 8First Reading of Council –Council –Second Reading of Council –Council –Effective Date – I, Pamela M. Myra, Municipal Clerk of theMunicipality of the District of Chester do herebycertify that the above is a true copy of anadvertisement duly advertised in the LighthouseBulletin on DATE.Given under the hand of the Municipal Clerk andunder the corporate seal of the said Municipalitythis_____day of _____, 2018 __________________________________Pamela M. MyraMunicipal Clerk