Storm and sanitary servicing plans start with an Area Master Plan, a high level presentation of servicing concepts prepared by Utility Services. The concepts are further refined into detailed servicing schemes in a Neighbourhood Design Report or a basin report prepared by the landowners’ consultant.
The Area Master Plan and Neighbourhood Design Report are conditions of Utility Services’ support to Area Structure and Neighbourhood Structure Plans, Zoning and Subdivision (SUB) applications.
Generally, the installation of the storm and sanitary facilities is a condition of SUB and in some cases that of a development permit. Landowners are responsible for the timely installation of servicing to their properties.
Permanent Area Contribution (PAC)
Large sewers and special facilities known as ‘trunks’ are shared among benefiting landowners by means of the Permanent Area Contribution (PAC) program. Smaller pipes are generally not shared and are solely paid by the benefiting landowner. PAC is charged to all properties in a PAC Basin whether the facilities are built or not, as long as the PAC Rates are established.
Sanitary Servicing Strategy Fund
Major sanitary trunks not covered by the Permanent Area Contribution (PAC) program are financed by the Sanitary Servicing Strategy Fund (SSSF) which has three sources of funding:
- Expansion Assessment Charge (EA)
- Sanitary Sewer Trunk Charge (SSTC)
- Sanitary Utility Contributions
The EA is charged to all properties that are in EA Areas whether the facilities are built or not. The SSTC is charged to all premises abutting an EPCOR Water Service Inc. or City right-of-way in which there is a sanitary or combined sewer. EPCOR pays for the Sanitary Utility Contributions.
PAC and EA payments are collected at subdivision or development permit, whichever comes first, via a Servicing Agreement between the landowner and the City. The SSTC is collected at the time of the development permit application.
In commercial and industrial areas, funding of some drainage facilities may be through the Local Improvement Financing subject to some conditions and the Bylaw.
In addition, a landowner has to pay the Water and Sewer Service Connection Fees for the installation of services from the City mains to the property line.
Permanent Area Contributions (PAC) Program Details
Drainage Services administers inter-developer financing and cost sharing of sewer systems installed in private development areas. See PAC Cost Information and Submission Requirements.
- Any sanitary sewer having an internal diameter of 375 mm or more (sanitary trunk sewers)
- Any storm sewer having an internal diameter of 1200 mm or more (storm trunk sewers)
- Any stormwater management (SWM) system which includes, among others, SWM drainage studies, stormwater retention/detention facilities, the interconnecting and connecting storm sewers, control structures, landscaping, land cost
Installation costs of sanitary sewer of less than 375 mm in diameter and storm sewer of less than 1200 mm in diameter (lateral sewers) are normally not cost sharable. They are installed at the developer's sunk cost. The only exception is when oversized laterals (provide additional capacity and/or depth) are required to service areas external to the development in question. The cost difference can be recovered by an oversize claim from the benefitting areas.
There are two types of cost sharing: on-site and off-site.
On-site Cost Sharing
Cost sharing of trunk sewers installed within a pre-defined boundary (drainage basin). The boundary of the cost-sharing area is determined on the basis of topographic, political, economic and design constraints. This cost sharing is characterized by the following:
- A number of developers benefitting from a common sewer system within the cost sharing area are involved in the installation and financing of the required system. Construction of the sewer system is staged according to the pace of development. Each developer is responsible for constructing their portion of the system
- Each developer is required to pay his relative share of the construction cost which is established by an area assessment known as the Permanent Area Contribution (PAC). This rate or area charge is recalculated each year and is derived by dividing the estimated construction cost of the cost sharable items within the cost sharing boundary by the remaining benefitting areas. The PAC for each developer is calculated by multiplying the PAC rate by its development area
- The developers are also involved in an inter-developer financing scheme. For example, if a developer is required to construct a portion of the sewer system that is subject to cost sharing, they will front-end the required construction costs. Since all that they are required to pay is its PAC, the difference between the actual construction cost and the PAC is treated as an over/under expenditure. An over expenditure can be recovered from subsequent developers. An under expenditure will be held in trust to offset over expenditures from future developers
- A developer within a cost-sharing area is required to pay its PAC and any interim payments resulting from the inter-developer financing scheme
Off-site Cost Sharing
Intercepting sewers built outside the boundaries of on-site cost sharing basins. An off-site cost sharing area usually consists of a number of on-site cost sharing areas, and is characterized by the following:
- The off-site sewer systems are usually installed and/or financed by one developer or a group of developers who would front-end the costs of the entire system. They will carry the over expenditure which cannot be fully recovered until the entire basin is developed
- Calculations of off-site PAC and over/under expenditures for subsequent developers are similar to those used for on-site cost sharing
Local Improvement Financing for Utility Services
The local improvement process for Utility Services makes it possible for a property owner or several property owners to obtain sanitary sewer servicing and/or storm sewer servicing of abutting lands and to finance the cost of the construction by way of amortizing the construction charges on the tax roll.
Property owners inquiring about local improvement construction should first consult Utility Services whether:
- Servicing may become available,
- The area is eligible for local improvement servicing under existing city policy, and
- Local improvement financed construction is feasible.
The City of Edmonton can undertake a local improvement provided certain conditions are met which include:
- Sufficient petitions requesting local improvement construction are received,
- Sufficient petitions protesting against the local improvement construction are not received,
- All conditions are met in order to comply with the MGA (Municipal Government Act) Revised Statutes Of Alberta 2000, Chapter M-26, and
- A bylaw is passed by Council which authorizes the financing undertaking and completing of the local improvement construction.
Local Improvement Examples
Some examples of what may be constructed under local improvements are as follows:
- Sewer mains
- Services (from main to property line, and only in conjunction with main construction)
- Oversizing
- Sewer pumping stations
- Drainage culverts
- Ditch grading