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HomeMy WebLinkAbout2004-02-04 Council MinutesN 0 Council Agenda Item #5(a) TO Reeve Hoppins Members of Council FROM Rob Mayhew DATE February 04, 2004 Issue Development of Undeveloped Road Allowance Cost Share Options — Second User Background With the increase of requests for road development on County dirt roads, the question has come up as to what cost option responsibility the second user should be subjected to with his development on the existing road that was originally cost shared with the County by the first developer The amendment for Policy 45 13, Development of Underdeveloped Road Allowance, was received at the January 29 2004 Council meeting Discussion Four Counties were contacted Stettler, Lacombe Mountain View and Red Deer One planner expressed the position that the first developer entered into the initial agreement because he wanted to develop his Future Residential, Confined Feeding Operation, Industrial or Commercial Development there He was willing at that time to invest the dollars to build the road to his development The County cost shared and have the responsibility of maintaining this road. A second development whether it be immediately or five years from the time of the first development should not be expected to pay for an existing gravel road One County states in its Access Roads Policy "An individual or individuals shall have no claim for refund of the cost share if at any future date, the use of the road develops to the extent that it may be considered to be in the interests of the public generally " The issue of Second User Fees can become cumbersome, complicated and difficult to enforce Municipalities who have considered the implementation of Second User Fees, generally decide not to pursue this option Financial Implications No financial implications At present Policy # 5 13 Development of Undeveloped Road Allowance provides the guidelines for undeveloped sites — Future Residential, Confined Feeding Operation Industrial or Commercial Development Recommendation 1 That Council approve the amendment to Policy #5 13 Development of Undeveloped Road Allowance as presented (seeMattaed) Rob Maew Ge I iviaho 18 Cq 110 CW] *****Amendment Noted in Bold******* Policy # 5 13 Development of Undeveloped Road Allowance Department DEVELOPMENT CONTROL Approval Date July 22, 2003 Amendment Dates August 19, 2003 Replaces Reference. Motion #385/03 PURPOSE To establish a policy with respect to development on undeveloped road allowances POLICY STATEMENT Provide Administration with guidelines relating to the upgrading of undeveloped road allowances for those dirt road allowances associated with new subdivisions and developments POLICY GUIDELINES 1 Undeveloped Site — Future Residential, Confined Feeding Operation Industrial, or Commercial Development 1) The County will pay fifty percent (50%) of the costs, to a maximum of $15,000 00, including gravel and seeding costs, for the building of the road to County standards ( as per Schedule A — Major Local Road Standard) 2) At time of subdivision or development approval, whichever comes first, the Developer will enter into a development agreement whereby a caveat will be attached to the title, outlining the Developer's and County's responsibility of the upgrade of the road Prior to subdivision or development approval, Council approval will be required for the upgrade of the road 3) The Developer will be responsible for hiring a contractor for completion of the Job 4) County standards will apply for seeding of the roadside upon completion of construction in accordance with Policy #13 25, Seeding Roadsides 5) Upon completion of the construction, inspection will be required by the Public Works Department, and any deficiencies noted will require correction Final inspection will be completed one (1) year following corrections of any defects or deficiencies and a Final Acceptance Certificate will be issued The County s portion of the cost will be paid to the developer upon issuance of the Final Acceptance Certificate 6) Maintenance of the road will be the responsibility of the County once a Final Acceptance Certificate has been issued 7) "An individual or individuals shall have no claim for refund of the cost share if at any future date, the use of the road develops to the extent that it may be considered to be in the interests of the general public " 19 • E 40 To Council From. Terry Nash Date February 4, 2004 Council Agenda Item 4 6(d) Issue Review of the limits of expenditures for recording expenditures as capital assets and adding definitions for asset classifications to the existing policy Discussion Although the insurance deductible on a single claim is $1,000, we need to inventory smaller items should a multiple loss occur If an entire building were to be destroyed, we would need to report the loss of all articles stored at that location The $500 limit seems to pick up most articles with a useful life exceeding 1 year, without the need to record numerous disposals annually The definitions of asset classifications are from the Municipal Account Coding Structure Recommendation 1 That CouriFil receive the draft Capitalization of Fixed Asset Policy as amended Terry Nash, Wsis a{ant CAO 33 Eel • 0 • Policy # ASSET MANAGEMENT — Capitalization of Fixed Assets Department Corporate Services Approval Date Amendment Dates- Replaces Reference Purpose. To Document policies and procedures for capitalization of fixed assets Policy Statement Expenditures are made from various funds for the acquisition of fixed assets and regardless of the source of funds, the assets must be accounted for The guidelines will describe the method of accounting for all fixed asset additions They will insure the preservation, conservation and safeguarding of each asset through its useful life Policy Guidelines Fixed Assets are of a durable, tangible physical and valuable nature and include additions, replacements and major alterations, thereto, from which a stream of benefits are derived over a period of years Asset acquisitions with a useful life of more than 1 year and a unit cost between $500 and $9,999 00 shall be inventoried Asset acquisitions with a useful life of more than 1 year and a unit cost of $10 000 00 or more will be classified as capital Any item which costs less than $500 will be expensed Parts and supplies added to new vehicles and equipment to customize it for County use are to be itemized by the shop on a capital work order and the total value of these extra items are to be recorded as part of the original purchase of equipment. No depreciation is recorded on fixed assets Classifications 500 Equipment Fixed or movable devices for performing any sort of work, such as motors, pumps electrical or control devices, office appliances and furniture with a unit cost between $500 and $9,999 00 610 Engineering Structures — All permanent structural works other than buildings such as sewer water gas systems, power lines, radio towers parks retaining walls, etc., to be 34 DRAFT DRAFT recorded at cost Include service installations attached to land held for resale Roads bridges, and sidewalks are not capitalized 620 Buildings — Building structures such as offices, garages, and warehouses, intended to shelter persons and/or goods machinery, equipment and working space 630 Machinery — Fixed or movable devices for performing any sort of work such as graders, tractors, packers office appliances and furniture with a unit cost of $10,000.00 or more and all computer equipment (Replacement software or upgrades are not capitalized.) 640 Land For Own Use — Improved or unimproved land owned by the municipality including rights of way and cemetery plots Does not include tax sale land or land held for resale 650 Vehicles — Includes automobiles trucks tractor trailer units and buses Asset Reporting — A complete inventory (balanced to the general ledger) of all fixed assets will be maintained including proper identification, location and cost • 35