STAFF REPORT: Eagle Creek Request to Utilize Town Property

TOWN OF VIEW ROYAL

Public Works & Transportation Report

TO: Council FROM: John Rosenberg, Director of Engineering DATE: June 2, 2016 MEETING DATE: June 7, 2016 FILE NO.: 5400-02

Eagle Creek Request to Utilize Town Property

RECOMMENDATION:

THAT Council authorize the per event fee of $250 for the alteration of traffic on Helmcken Road Right of Way;

FURTHER THAT if alterations were to occur on Helmcken Road Right of Way in 2017 the fee would increase to $500 per day for each event commencing January 1, 2017.

CHIEF ADMINISTRATIVE OFFICER'S COMMENTS:

I concur with the recommendation.

PURPOSE OF REPORT:

To seek a Council decision on Omicron's request to utilize Town property.

BACKGROUND/DISCUSSION:

A request has been submitted by Omicron to utilize the right of way in front of the Eagle Creek development to renovate Building 7 at 29 Helmcken Road. The request would see hoarding installed on both private and public land (see attached). The public portion would be approximately 500 square feet (46.45 square metres) in size and the private portion would be 100 square feet for a total approximate size of 1500 square feet. As well the request will have traffic disrupted several times a week to unload and load materials as well as to remove construction debris. The duration would be from July to the end of December. Traffic disruptions are estimated to be intermittent over 2.5 to 6 hours at a time. In addition to traffic disruptions, there will be a need to halt traffic at various times throughout the project.

The request intimates that there is no alternative to complete the renovation. Although there is a likelihood that alternative options exist, it is almost assured that none of them would be timely or convenient and would cost significantly more. If however, the parking lot was a viable alternative the required space represents 10 parking stalls, the value of the stalls would be approximately $500 per month ($300 until the end of December) for the required spaces were to be rented. Staff have investigated trying to restrict times so that the travelling public would be minimally impacted, but due to the nature of the requirements of the renovation, this is not possible. The proponent has committed to do their best to mitigate all traffic impacts including pedestrian and cycling traffic at their expense. Deposits will be held for all known infrastructure that is likely to be damaged or need replacing; as well, a deposit will be required for unforeseen consequences and or to respond to emergent situations. It is anticipated that staff will be inundated with concerns from citizens over the entire duration of the construction activities.

BUDGET IMPLICATIONS:

The rental of public space in the Right of Way is not a regular event. There does not appear to be a standard that municipalities utilize.

The District of Saanich does have a rental formula but it does not include traffic disruptions. The formula used by Saanich would result in the proponent paying $5 a day (the fee to the end of December would be $915), staff feel that this would not address the significant consequences to the travelling public and the associated staff time that will be spent.
An alternative that appraisers have utilized calculates land value and applies a rental fee of 10% per annum ($97.19 monthly/ $583.14 to the end of December).
A fee of $100 a day (the fee to the end of December is estimated to be $18,300). In addition to the fee, a penalty should be imposed if the deadlines are not met. It is recommended that a minimum fine of $5,000 for usage beyond December 31, 2016 be imposed as well as an increase to the daily rate of $100 to $500 a day be imposed for every day the rental continues into 2017.
In order to motivate and ensure disruptions are kept to a minimum it would be prudent to charge on a per traffic alteration event. Staff suggests this fee should be $250 per event. If the proponent were to utilize the lanes on average 4 times a week it would result in a fee collection of approximately $26,000. If, however, they kept the closures down, to save costs and averaged 2 events per week it would result in a fee collection of approximately $13,000. As well, to ensure the work required to complete the renovation does not continue into 2017, staff would suggest the event fee be increased to $500 per alteration commencing January 1, 2017.

Options 1 and 2 do not take into account the nuisance of the rental i.e. traffic delays, public inconvenience, staff time to address concerns, supply and demand, temporary usage of additional Right of Way on an ongoing temporary basis.

Options 3 and 4 are preferable as they address the nuisance factor in the following ways:

Persuade the proponent to be expeditious in their construction activities.
The generated fees could be utilized for the public good such as:
- Purchase of a permanent speed reader board in the area north of Watkiss on Helmcken
- Purchase of the seasonal lights that are to be installed on the median on Helmcken Road
- Purchase of various traffic related appurtenances to deal with ongoing traffic issues generated by the development:
  - Signs
  - Barricades
  - Flashers
Provides the messaging that public space is not "free" to use

This should once again provide incentive for the work to be performed in the most efficient manner possible. Ultimately the Town has the ability to charge the rate they feel best represents the public interest.

RECOMMENDATION:

THAT Council authorize the rental 500 square feet of the Helmcken Road Right of Way by the Eagle Creek Development to Omicron Canada Inc. for $100 per day;

FURTHER THAT a minimum penalty of $5,000 be imposed for any rental period that extends beyond December 31, 2016;

AND FURTHER THAT the fee increase to $500 per day beginning on January 1, 2017.

ALTERNATIVE RECOMMENDATION:

THAT Council authorize the per event fee of $250 for the alteration of traffic on Helmcken Road Right of Way;

FURTHER THAT if alterations were to occur on Helmcken Road Right of Way in 2017 the fee would increase to $500 per day for each event commencing January 1, 2017.

SUBMITTED BY: John Rosenberg, Director of Engineering

REVIEWED BY: Kim Anema, Chief Administrative Officer