Roads License Agreement

A Roads License Agreement is an agreement between the Township and any property owner(s) who would like to use or continue to use an unopened road allowance as a means of vehicular access to their property.

Residents who make use of an unopened road allowance to gain access to their private property will be required to enter into a Roads License Agreement with the Township to reduce potential risk and liability to the Township, road users, the public and all municipal taxpayers. 

Over the past decade, insurance premiums for the Township of Lake of Bays and municipalities across Ontario have skyrocketed due to multi-million dollar liability-related court cases. The Township now pays over half a million dollars in insurance premiums per year, which is four times higher than in 2015, representing a substantial increase of just over 300%. This increase is the equivalent of a 6.25% property tax rate increase for each resident in Lake of Bays. 

To minimize the assessed risk of liability by insurance providers and keep premiums as low as possible, staff report on measures taken by the Township to mitigate the risk of potential claims. These license agreements are among the measures the Township has implemented in recent years to protect taxpayers against potential claims and the associated rising insurance costs.

The Association of Municipalities of Ontario (AMO) has conducted surveys showing the rapid increase in municipal insurance premiums, with liability premiums making up the majority of costs. Joint and several liability, referring to a legal principle where a municipality can be held fully responsible for damages caused by multiple parties, is named as a large contributor to these high insurance costs. Additionally, a survey by AMO determined that the per-capita insurance costs for communities with populations under 10,000 is $37.56, while for communities over 75,000 it is only $7.71, highlighting the disproportionate burden on smaller municipalities like the Township of Lake of Bays.

For more in-depth information, view the following resources:

AMO: Issue at a Glance - Joint and Several Liability

AMO: Issue at a Glance - Municipal Insurance

AMO: The Future of Municipal Liability and Risk Management

Unlike individual insurers who have many options in a competitive insurance market, municipalities have very few alternative insurance providers to choose from when it comes to insuring the municipality. Simply switching to a different insurance provider does not provide a comprehensive solution to address the problem of escalating and unaffordable insurance premiums for municipalities. 

For more in-depth information, view the following resources:

AMO: Issue at a Glance - Joint and Several Liability

AMO: Issue at a Glance - Municipal Insurance

AMO: The Future of Municipal Liability and Risk Management

Township staff do not actively seek out unassumed road allowances requiring a Roads License Agreement. Instead, the process begins when a property owner submits a Planning or Short-Term Rental application and/or other public inquiries.

If the Public Works Department identifies that an unassumed road allowance is being utilized for property access in these applications and recognizes the need for a Roads License Agreement, letters are sent to all affected property owners on that road allowance.

Please note that building permit applications for already developed properties are not reviewed by the Public Works Department for a Roads License Agreement. For further information, please refer to the question 'If a resident refuses to sign a Roads License Agreement, will the Township deny other applications, such as permits for building or short-term rental agreements?'

Sections 26 and 28 of the Municipal Act, 2001.

These two sections serve to place jurisdiction of an unopened road allowance with the Township as well as the authority to control what development, improvement or use occurs on these unopened road allowances.

Application Fee:

The application fee is $300 (under 30m of Township property used) for simple applications or $650 (over 30m of Township property used).

Survey Cost:

The applicant is responsible for the cost of a survey sketch of the Township property they are using and/or proposing to use. Please refer to the next question for more information on 'What type of survey will I need and what steps should I take to get it?'.

Liability Insurance:

The applicant is responsible for obtaining and maintaining $5 million dollars of liability insurance with the Township named as an additionally insured party.

Annual Fees & Proof of Insurance:

The applicant is also required to pay a fee of $250 and proof of insurance annually, including the Township as an additional insured party.

A Survey Sketch (form an OLS surveyor) is sufficient for the Roads License Agreement application. It provides a general overview of the property's dimensions and features and must show the travelled private road/driveway and any other encroachments onto the road allowance.

Other types of surveys:

It's important to note that a Survey Sketch, Survey Plan, and Reference Plan are all services offered by a surveyor, each serving different purposes and having varying levels of detail, legal recognition and price. 

Acquiring a surveyor:

The Township highly recommends that applicants obtain multiple quotes for survey work due to the varying costs and availability of the providers. While the Township cannot endorse specific companies, many local surveyors are available. Applicants should search online directories or the Yellow Pages to find surveyors in the area.

It is common for insurance companies to provide coverage listing Township property as an additional insured location, and many property owners have actively secured such coverage. Property owners can provide their insurance companies with a copy of the Roads License Agreement which details the insurance requirements. Often private property insurance policies can be extended to include an Umbrella or Excess liability policy which can list the Township property as an additional insured location.

If a property owner(s) who is using an unopened road to access private property fails to enter into a Roads License Agreement, they may be subject to fines or penalties in accordance with the following Municipal By-laws:

• Roads License Agreement By-law.
• Fouling and Encumbering By-law.
• AMPS By-law.

While the Township has the authority to restrict vehicular access on, over, or along unopened road allowances, such restrictions would only be implemented as a last resort.

• For new development on vacant land accessed via an unopened road allowance, a Roads License Agreement is required before a building permit can be issued.
• For already developed properties accessed via an unopened road allowance, the issuance of building permits does not depend on having an established Roads License Agreement.
• Short-term rental (STR) licenses will not be issued until it has been reviewed and approved by the Public Works Department. If it is determined that a Roads License Agreement is required for the property, the STR license will not be approved until those requirements are met.

Although rare, if there is a legally granted right-of-way or easement over the Township unopened road allowance, it would be identified on the private property owner’s title.  The property owner will be required to provide proof to the Township that a right-of-way or easement is part of the title to their private property.

If you believe the above applies to your situation and you received a letter requesting you to enter into a Roads License Agreement with the Township, please contact the Public Works Department with a copy of your property owner’s title and all other supporting documentation.

Forming a road association:

Instead of individual agreements, an option exists for multiple property owners on the same road to form a Road Association and/or a Corporation to enter into the Roads License Agreement. This association could collectively obtain insurance and maintain the road, potentially reducing individual costs.

Seek an exemption:

As noted previously, in rare cases, if there is a legally granted right-of-way or easement over the Township unopened road allowance, it would be identified on the private property owner’s title. The property owner will be required to provide proof to the Township that a right-of-way or easement is registered on title of their private property.

Explore alternative access routes:

The property owner can find another means of accessing their property (e.g. access over private property, etc).

The Roads License Agreement is currently for a term of 10 years, subject to renewal. If all the requirements at the time of a request for renewal are met, the Roads License Agreement may be renewed. Terms of the Roads License Agreement may be updated from time to time as legislative requirements or municipal policies change.

The user(s) are responsible for all maintenance of the road/driveway and all costs associated with that maintenance.

• To maintain the road/driveway in a safe manner, meaning there are no hazards that could cause injury and/or damage to the users of the road/driveway and/or the travelling public. For more information, refer to the question ‘What standards must the road meet, and who determines if those standards are being upheld?’
• Maintain insurance for the life of the License.
• Follow the terms and conditions of the License.

Updated June 3, 2024, at 2:12 p.m. - Clarification was added regarding driving surface requirements including width for two-way traffic flow.

The unopened road allowance/driveway must be kept in a safe manner. Meaning there are no hazards that could cause injury and/or damage to the users of the road/driveway and/or the travelling public.

Property owners are NOT required to maintain the road to full municipal standards but must keep it in a safe condition as determined by the Public Works Department.

Township staff will review the unopened road allowances occasionally and if there are concerns/issues noted then the holder of the License will be notified. 

If the Township’s concerns are not dealt with in a timely manner, Township Staff will make necessary repairs and apply it to the property owner’s tax account as provided for in the Roads License Agreement and will follow up with enforcement measures.

Examples of issues that Township staff may deem as safety concerns may include:

• Potholes or other major surface defects that could damage vehicles or cause loss of control.
• Fallen trees, rocks, or debris blocking passage.
• Collapsed culverts or drainage crossings in poor repair.
  

For existing (prior to May 1, 2024) private roads/driveways for cottages/non-commercial properties located on Municipally owned property, including an Unopened Road Allowance:

• Must have a minimum driving surface width of 3.0 metres.
• Must allow oncoming vehicles and/or emergency vehicles to pass, either by providing sufficient road width or by having driveways and/or pull-offs spaced no more than 90 metres apart.
• Must be constructed to support the weight of emergency vehicles.
• Slopes must not exceed 8% over 15 metres, and curves and/or corners must provide adequate space and visibility for traffic and emergency vehicles.
• Adequate space must be provided at the end of the road to facilitate emergency vehicle turnarounds.

The user(s) are responsible for all maintenance costs to the unopened road allowance.

• If it is a single user, then the new property owner must enter into a new agreement. These Roads License Agreements are non-transferable; however, the previous agreement and all applicable information can be utilized as long as there have not been any changes made.
• If there are multiple users, it is recommended that they form an Association and/or a Corporation to enter into the Roads License Agreement. If a property owner were to sell their property, then the new owner may only have to join the pre-existing group and remain in good standing with them.

Yes, the Township may step in and remedy hazardous maintenance/safety issues if the user(s) fail to comply with direction from the Township and these costs will be applied to the applicable property tax accounts. However, this will be a last resort and will impact the granting of renewals.

If a property owner fails to comply with the terms of the Roads License Agreement, enforcement measures through the AMPS By-law will be taken and as a last resort, the Township may terminate the agreement.

As mentioned earlier, property owners can form a Road Association or Corporation and these costs can be collectively determined by the Association/Corporation.

• If it is a single user, then that would be considered a default of the terms of the license and enforcement measures would be considered by the Township.
• If it is an Association/Corporation, the Township would need to be notified that this user is no longer part of the Association. That user would need to enter into a Roads License Agreement on their own behalf or be subject to Township enforcement measures.