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Northland agreement may happen soon
Trailer owners to face plebiscite on up to $358 monthly fee

Simon Whitehouse
Northern News Services
Published Wednesday, May 9, 2012

SOMBA K'E/YELLOWKNIFE
There may finally be light at the end of the tunnel for Northland residents as city council moves ahead with a memorandum of understanding to commence construction to replace crumbling water and sewer pipes.

The memorandum between the city and the Yellowknife Condo Corporation No. 8 board states that a project over the next two to three years will cost about $15.8-million, to be paid over 25 years. If approved, the city will borrow money to fund the project.

It is expected trailer owners will pay a debt service charges through a local improvement fee of no more than $358 per unit per month at five per cent interest. The city describes the five per cent rate as "conservative" and is expected to be lower depending on the loan attained.

Councillors deliberated on the memorandum for the first time at Monday's municipal services committee meeting. The document will now be subject to a vote at the regular council meeting next week. Following that, Northland residents will need to approve the memorandum through a plebiscite, which must receive 60 per cent of property owners, representing more than 50 per cent of assessed of real property in the area to move ahead with construction. Northland residents have 60 days after council's approval to decide.

Condo board infrastructure committee member Wade Friesen and resident Grant Rice advocated further savings to trailer park residents at the meeting.

"I've been on council for a long time and I have had discussions with residents and boards with Northland and literally this is the very first time that I have comfort that we may have a solution at our doorstep," said Coun. Bob Brooks. "I know it is going to be hard to sell on behalf of Wade (Friesen) and the board to go door to door to residents about doing this project, but I think literally this is the best opportunity we have ever had to fix this problem and then move on so that it will be city property and we take care of it from then on."

About five members of the public were present to hear the deliberations on Northland Monday, including Friesen and Rice, who made presentations asking for further ways to reduce costs.

Friesen said he had two requests to further reduce costs to owners which included the city taking back the roads unpaved, as opposed to the proposed chip seal after underground work is complete.

Brooks pointed out that the board would end up facing many complaints from residents if it allowed the roads to be left with bare gravel because it could be five or more years before they are paved. In the meantime it can kick up a lot of dust and leave ruts in the road.

City administrator Bob Long said costs to maintain a gravel surface could be quite costly to the city - between $40,000 and $60,000 a year.

"There are maintenance costs associated with the gravel road, which general taxpayers would have to foot the bill and this would more than offset the difference of the cost (between gravel and chip seal)," he said.

Long added savings will be made through low interest rates, which will be much lower than the five percent, and in-house construction.

Friesen also requested a clause that would offer better protection to residents from potential cost overruns. Carl Bird, the city's director of corporate services, confirmed the contingency rates for the project are 15 per cent for engineering and 20 per cent for labour.

"Not having this protection virtually negates the rest of the agreement," said Friesen, pointing out he didn't think he could get approval if such a clause was not in place.

"If the city is confident with their estimates and contingencies, but can't say that they will pay for cost overruns, they at least need to find a way to absolve to condo members of these potential additional costs."

Long said the city couldn't agree to the two points but brought to council what administration thought was the most appropriate deal. According to the Cities Towns and Villages Act, if citizens are involved in a local improvement project, all costs have to flow through the local improvement charge.

"You can't have savings accrued to yourself at the same time some against cost overruns when we have substantial contingencies included," he said. "The basis of an agreement has to have some basis of trust associated with it."

Councillors strongly supported moving the project forward, although Coun. Mark Heyck was absent.

"I think we have the guts of something that is going to be put in front of unit owners in Northland and I think it is a good opportunity for them to get under the difficult conundrum they find themselves in," said Coun. David Wind.

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