Encroachment - Apotex Realty Inc. - Underground Utilities -

Ormont Drive, Garyray Drive and Weston Road - North York Humber

The North York Community Council recommends the adoption of the following report (April14,1999) from the Director, Engineering Services, Districts 3 and 4:

Purpose:

The purpose of this report is to obtain Council approval to enter into an encroachment agreement with Apotex Realty Inc. to permit the installation, ownership and maintenance of underground fibre optic conduits by Apotex Realty Inc. within the public road allowance at various locations.

Funding Sources, Financial Implications and Impact Statement:

N/A

Recommendations:

It is recommended that the proposed encroachments be approved by the City subject to the following conditions:

(1)the owner enter into an encroachment agreement with the City including the terms and conditions as set out in this report and such other terms as may be required by the Commissioner of Works and Emergency Services and the City Solicitor; and

(2)the appropriate City officials be authorized to do all things necessary.

Council Reference / Background /History:

North York Community Council, at its meeting on June 3, 4 and 5, 1998, adopted Clause No. 20 contained in Report No. 6 which required that:

1.the City be authorized to enter into negotiations with Apotex Realty Inc. toward an agreement to permit the installation, ownership and maintenance of underground fibre optic conduits within the public road allowance at various locations;

2.the appropriate City officials report back to Council upon conclusion of the negotiations;

3.the proposal respect the Federation of Canadian Municipalities model agreement; and

4.the agreement be negotiated through the local councillors.

Comments and/or Discussion and/or Justification:

Following the above-mentioned Council resolutions, the City and Apotex Realty Inc. held several discussions as to the terms of the encroachment agreement to permit the installation, ownership and maintenance of the fibre optic conduits within the City road allowances, linking the various Apotex Realty Inc. buildings in the Ormont Drive and Garyray Drive area. Negotiations between the City and the owner have now been completed. A draft agreement has been prepared and reviewed to the satisfaction of both parties.

The Legal Department advises that the encroachment agreement adheres to the principles of the Federation of Canadian Municipalities model Municipal Access Agreement.

Both Local Councillors of Ward 6 - North York Humber have been consulted for their comments.

The highlights of the encroachment agreement are as follows:

1.the agreement provides for a licence fee to be paid annually to the City (licence fee for 1999 approximately $15,000.00) and increased annually by the Consumer Price Index;

2.the agreement provides for a liability clause to indemnify the City against all actions, suits, claims, demands and costs associated with the encroachments;

3.the agreement requires the owner maintain comprehensive general liability insurance for a minimum of $5,000,000.00 for each occurrence;

4.the agreement requires that the owner be a member of an underground utility "Locate" service such as "Ontario One Call Ltd.";

5.the agreement provides for the relocation of the encroachments upon notice by the City and removal of the encroachments if the owner is in default of the agreement;

6.the use of the encroachments is limited to Apotex Realty Inc. and its affiliates for their own internal business purposes; and

7.the agreement provides (as do similar agreements in the former City of Toronto) that the term shall be for the life of the buildings (including a replacement building) or 75 years, whichever is less.

Conclusions:

All issues have been addressed to the satisfaction of the Commissioner of Works and Emergency Services and the City Solicitor; therefore, this Department has no objection for the City to enter into an agreement to allow the encroachments in the public road allowance.

Contact Name and Address:

Raffi Bedrosyan, P. Eng.

Manager, Development Services, District 3

Tel. No. 416-395-6307

Fax No. 416-395-0349

E-Mail: rbedrosy@city.north-york.on.ca