Review of Limited Service Agreements for Private Roads in Public Works Operations
Discover how limited service agreements are utilized for private roads in public works operations, including details on services provided, active agreements, cost breakdown, and more in Kawartha Lakes.
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Presentation Transcript
Limited Service Agreements Roads Operations, Public Works Core Service Review
What are we doing now? Limited service is provided by agreement on private and unassumed roads Includes 2 gradings/year and up to 2 loads of gravel per road at no charge Plus an additional load of gravel for every kilometer of road (or portion thereof) over one km in length Can include snowplowing as well The road must meet standards and pass inspection before LSA is approved city.kawarthalakes.on.ca Slide 2
What are we doing now? Currently have 65 active agreements to provide service to 68.72km of private & unassumed roads There are agreements for another 22 roads (17.7km) that are currently pending city.kawarthalakes.on.ca Slide 3
What are we doing now? Combination 1% Private 37% Unassumed 62% city.kawarthalakes.on.ca Slide 4
Where do we have agreements? 45 40 35 30 Kilometers 25 20 15 10 5 0 city.kawarthalakes.on.ca Slide 5
What is it costing us? 2012 Actual $27,716.91 2013 Actual $33,773.83 2014 Actual $30,969.47 2015 Budget $40,154.00 Cost to provide this service has increased 45% since 2012 Received 7 new applications this year 18 renewals this year, 20 expiring in 2016 Currently contract out some of the work as our equipment is too large to service the roads city.kawarthalakes.on.ca Slide 6
What is it costing us? 2014 Actual Labour $6,258.86 $11,567.50 $5,517.30 $6,925.81 Equipment Material Contract Other $700.00 $30,969.47 Total Does not include costs for staff or for registry searches city.kawarthalakes.on.ca Slide 7
What is it costing us? Area Approximate annual cost $8,320 $11,696 Administration - PW Supervisors - existing agreements Supervisors - new agreements Managers Service Centre staff Legal $602 $3,128 $1,360 $500 $25,606 city.kawarthalakes.on.ca Slide 8
Legal Opinion In 2009 the City received a legal opinion on Limited Service Agreements Jurisdiction is the magic word The City is not legally obligated to provide maintenance on either category of road (private or unassumed) and not doing so limits both the maintenance costs and exposure to liability for the City city.kawarthalakes.on.ca Slide 9
Gravel Roads 120 45 40 Kilometers of LSA Roads 100 35 # of Complaints 80 30 25 60 20 40 15 10 20 5 0 0 2014 2015 LSAs Complaints recorded in Cartegraph for grading, pothole gravel, road condition complaint gravel city.kawarthalakes.on.ca Slide 10
Gravel Roads Assumed gravel roads are on a 10-12 cycle to receive new gravel Provided new gravel to 75.36km of assumed roads in 2015 2016 plan to provide gravel to 78.08km of assumed roads 14% of active LSA roads receive equivalent or greater amounts of gravel compared to our assumed gravel roads city.kawarthalakes.on.ca Slide 11
Options Status Quo Discontinue all LSAs Fee for Service Grant Program city.kawarthalakes.on.ca Slide 12
Option 1 Continue to Service LSA Roads (Status Quo) Continue to provide established service Continue with existing service level Continue to expand the number of LSA roads on an annual basis if they meet criteria city.kawarthalakes.on.ca Slide 13
Option 1 - Risks Demand continues to increase Cost continues to increase Increase to the number of LSA roads each year Takes a considerable amount of staff time and resources Inconsistent level of service between assumed roads and LSAs city.kawarthalakes.on.ca Slide 14
Option 1 - Costs 2015 Budget is $40,154.00 Administration Cost for Public Works & Admin Staff is estimated at $25,500 for 2015 This annual amount will continue to increase as costs for material and labour increase Annual amount will increase as more roads qualify for LSA s There is currently no limit on new applications city.kawarthalakes.on.ca Slide 15
Option 2 Discontinue all LSAs Discontinue all Limited Service Agreements Provide 30 days notice and cancel all agreements right away Could phase them out no new applications and no renewals city.kawarthalakes.on.ca Slide 16
Option 2 - Benefits Resources and funds allocated to core business city.kawarthalakes.on.ca Slide 17
Option 2 - Risks Would have to enter into an agreement to allow residents (or their private contractor) to do work in our road allowance city.kawarthalakes.on.ca Slide 18
Option 2 - Costs Will reduce the operating budget by $40,154 in 2016 Will reduce administration time allocated to administering and managing LSA program Will create capacity within Public Works in order to focus on core business city.kawarthalakes.on.ca Slide 19
Option 3 Fee for Service Maintain current levels of service but charge a fee Administration fee plus materials & labour for service city.kawarthalakes.on.ca Slide 20
Option 3 - Benefits Cost recovery for the service Not funded by the tax base city.kawarthalakes.on.ca Slide 21
Option 3 - Risks Would increase invoicing and collection which would impact resources in Revenue & Taxation city.kawarthalakes.on.ca Slide 22
Option 3 - Costs Approximate cost of $501.93/km for gravel and grading Snowplowing cost would have to be determined Administration fee also required city.kawarthalakes.on.ca Slide 23
Option 4 Grant Program Option was presented to Council in 2012 (PW2012-013) Modeled on grant program offered by Cramahe Township (in 2012 they had 5 roads that participate in the program) Annual grant of $55 per household and $1100 per km Each association would arrange for their own contractors city.kawarthalakes.on.ca Slide 24
Option 4 - Benefits Funding would be provided for associations to arrange their own service Staff resources can be allocated to core business city.kawarthalakes.on.ca Slide 25
Option 4 - Risks Significant cost to provide grants Administration time required for grant program No limit on new applications city.kawarthalakes.on.ca Slide 26
Option 4 - Costs Approximate cost of $155,562 per year if the grant program provided $55 per household and $1100 per km Administration time city.kawarthalakes.on.ca Slide 27
Cost Comparison Status Quo Discontinue Fee for Service Grant $0 $0 $0 Revenue Expense Net $0 $40,154 $40,154 $0 $40,154 -$40,154 $155,562 -$155,562 $0 city.kawarthalakes.on.ca Slide 28
Conclusion Should have an admin fee for all applications to cover administration and supervisors time Level of Service discrepancy between assumed gravel roads and LSAs Further review and potential to reduce the amount of gravel provided to each LSA road (maximum of 1 load) city.kawarthalakes.on.ca Slide 29
