HomeMy WebLinkAboutENG 12-16 •
Cali 00 A Report to
Executive Committee
�te1.•3;i4
PICKERIN
Report Number: ENG 12-16
Date: June 20, 2016
From: Richard Holborn
Director, Engineering & Public Works
Subject: Debenture Financing for the West Shore Neighbourhood
- Flood Remediation, Breezy Drive and Vistula Drive Roads
Reconstruction Project
- File: A-1440
Recommendation:
1. That the West Shore Neighbourhood Flood Remediation, the West Shore
Neighbourhood- Breezy Drive Road Reconstruction, and the West Shore
Neighbourhood Vistula Drive Road Reconstruction projects be combined as the
"West Shore Neighbourhood - Flood Remediation, Breezy Drive and Vistula Drive
Roads Reconstruction" project for debenture financing for an estimated total
project cost of$815,500.00 be approved;
2. That, notwithstanding the Council approved Purchasing Policy, The Regional
Municipality of Durham (the "Region") be authorized on behalf of the City of
Pickering (the "City"), to undertake the calling and awarding of the contract which
will include the West Shore Neighbourhood — Flood Remediation, Breezy Drive
and Vistula Drive Roads Reconstruction project;
3. That Council authorize the Division Head, Finance & Treasurer to finance the
estimated project cost of $815,500.00 as follows:
a) the financing source for West Shore Neighbourhood — Flood Remediation
Breezy Drive and Vistula Drive Roads Reconstruction Projects (Account
5320.1617.6250) be changed to 10-year external debt;
b) the sum of$815,000.00, as provided for in the 2011, 2015 and 2016
Capital Budgets and as amended in 3 a) be financed by the issue of
debentures by The Regional Municipality of Durham over a period not to
exceed 10 years;
c) the balance of$500.00 to be funded from property taxes;
d) the annual repayment charges in the amount of approximately $98,000.00
be included in the annual Current Budget for the City of Pickering
commencing 2016, or such subsequent year in which the debentures are
issued, and continuing thereafter until the debenture financing is repaid,
and any financing cost to be paid out of the Current Budget;
ENG 12-16 June 20, 2016
Subject: Debenture Financing for the West Shore Neighbourhood -
Flood Remediation, Breezy Drive and Vistula Drive
Roads Reconstruction Page 2
e) the.Treasurer be authorized to make any changes, adjustments, and
revisions to amounts, terms, conditions, or take any actions necessary in
order to effect the foregoing;
4. That the draft by-law attached to this report be enacted; and
5. That the appropriate officials of the City of Pickering be authorized to take the
necessary actions as indicated in this report.
Executive Summary: This report serves to seek Council approval for the
expenditure and debenture financing with The Regional Municipality of Durham for
work to be undertaken by the Region on behalf of the City of Pickering. The Region will
be calling and awarding the contract on behalf of the City. In order to mitigate basement
flooding in the West Shore Neighbourhood, due to surcharging of the sanitary sewer
system during high intensity storm events, the Region is replacing the existing sanitary
sewers to provide additional capacity. The City has recognized an opportunity to cost
share with the Region during their road restoration to bring sections of Breezy Drive,
Vistula Drive and Essa Crescent up to a current standard and to renew the
infrastructure.
The West Shore Neighbourhood Flood Remediation, the West Shore Neighbourhood-
Breezy Drive Road Reconstruction, and the West Shore Neighbourhood - Vistula Drive
Road Reconstruction projects are to be combined as the "West Shore Neighbourhood -
Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction" project for
the purpose of debenture financing.
CORP0227-07/01 revised
ENG 12-16 June 20, 2016
Subject: Debenture Financing for the West Shore Neighbourhood -
Flood Remediation, Breezy Drive and Vistula Drive
Roads Reconstruction Page 3
Financial Implications:
Approved Source of Funds
2011, 2015 & 2016 Capital Budgets —West Shore Neighbourhood Flood Remediation,
West Shore Neighbourhood - Breezy Drive and Vistula Drive Roads Reconstruction
project:
Project Code Description Source of Funds Budget Required
5320.1514.6250 Breezy Drive Debt— 10 Years $420,500.00 $420,000.00
(2015)
5320.1617.6250 Breezy Drive — Debt— 10 Years 85,000.00 85,000.00
(2016) additional funds (Revised as per
Recommendation
3a)
5320.1516.6250 Vistula Drive Debt— 10 Years 250,000.00 250,000.00
(2015)
5410.1101.6181 West Shore Debt— 10 Years 200,000.00 60,000.00
(2011) Neighbourhood —
Flood
Remediation
Property Taxes 0.00 500.00
Total $955,500.00 $815,500.00
In the 2015 Roads Capital Budget, three road reconstruction projects were approved in
the West Shore Neighbourhood.
These three projects are:
• West Shore Neighbourhood-Breezy Drive
• West Shore Neighbourhood-Vistula Drive
• West Shore Neighbourhood-Essa Crescent
Both the West Shore Neighbourhood — Breezy Drive Road Reconstruction and Vistula
Drive Road Reconstruction projects are to be financed through the issuance of
debentures for a 10-year term. Additional funds were requested in the 2016 Roads
Capital Budget for the West Shore Neighbourhood - Breezy Drive Road Reconstruction,
and were to be financed by a 10-year internal loan. Recommendation 3 a) changes the
financing source from internal loan to 10-year external debt to match the project
financing.
In the 2011 Stormwater Management Capital Budget, the West Shore Neighbourhood
Flood Remediation project was approved. A portion of the funds will be required for a
new storm sewer on Breezy Drive. This work is to be financed through the issuance of
CORP0227-07/01 revised
ENG 12-16 June 20, 2016
Subject: Debenture Financing for the West Shore Neighbourhood -
Flood Remediation, Breezy Drive and Vistula Drive
Roads Reconstruction Page 4
debentures fora 10-year term. The balance of the approved project ($140,000) will be
required in a future year (after this project is complete) to create an overland flow route
from Breezy Drive to Frenchman's Bay, across Bruce Hanscombe Park. This project will
be rebudgeted in 2017 with a source of funding to be determined at that time.
For the purpose of debenture financing, the West Shore Neighbourhood Flood
Remediation, the West Shore Neighbourhood-Breezy Drive Road Reconstruction and
the West Shore Neighbourhood-Vistula Drive Road Reconstruction projects will be
combined into one project and named as the "West Shore Neighbourhood — Flood
Remediation, Breezy Drive and Vistula Drive Roads Reconstruction" project.
The West Shore Neighbourhood - Essa Crescent Road Reconstruction project is to be
funded from the Roads and Bridges Reserve Fund; funds have been approved by
Council in the 2015 Capital Budget, and as such does not require additional specific
Council approval.
Discussion: In accordance with Purchasing Policy, Exceptions, Appendix
1, Item #8, work or services to or from other government agencies, utilities, provincial or
federal agencies, crown corporations, municipalities, public agencies or boards may be
procured by obtaining one price, subject to the funds being available in the current or
capital budgets.
The Regional Municipality of Durham meets the above exception. The West Shore
Neighbourhood — Flood Remediation, Breezy Drive and Vistula Drive Roads
Reconstruction project will be completed by the Region in 2016 and 2017 and is
approved in the Capital budget to be financed by external debt.
Projects identified in the capital budget as being financed through the issuance of
debentures are subject to additional, specific approval of the expenditure and the
financing by Council. This report serves to seek Council specific approval of the
expenditure and the debenture financing for the West Shore Neighbourhood — Flood
Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project.
Upon Council's approval of this report, the normal practice of issuing a purchase order
for the actual tendered amount will be followed.
CORP0227-07/01 revised
•
ENG 12-16 June 20, 2016
Subject: Debenture Financing for the West Shore Neighbourhood -
Flood Remediation, Breezy Drive and Vistula Drive
Roads Reconstruction Page 5
Attachments:
1. Being a by-law to authorize the West Shore Neighbourhood — Flood
Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project in
the City of Pickering and the issuance of debentures in the amount of
$815,000.00
2. Location Map
Prepared By: Approved/Endorsed By:
GCaryn Kong, CPA, CGA Holborn, P.Eng
Senior Financial Analyst— Capital & r, Engineering & Public Works
Debt Management
•
Stan Karwowski, MBA, CPA, CMA
Division Head, Finance & Treasurer
•
CK:mjh
Recommended for the consideration
of Pickering Cit Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07!01 revised
� TO REPORT#� 1 r 2 1�
ATTACHMENT#�—
1of
The Corporation of e i y or ickering
By-law No.
Being a by-law to authorize the West Shore
Neighbourhood — Flood Remediation, Breezy
Drive and Vistula Drive Roads Reconstruction
project in the City of Pickering and the
issuance of debentures in the amount of
$815,000.00
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section; and,
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or in
any other way; and,
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham (the "Region") has the sole authority to
issue debentures for the purposes of its lower-tier municipalities including The
Corporation of the City of Pickering (the "City"); and,
Whereas the Council of the City wishes to proceed with debenture financing for the
West Shore Neighbourhood — Flood Remediation, Breezy Drive and Vistula Drive
Roads Reconstruction project; and
Whereas before the Council of the City authorizes the West Shore Neighbourhood —
Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project on the
date hereof on the basis of the Region issuing debenture in the amount $815,000.00 for
such project, the Council of the City had the Treasurer update the City's Annual
Repayment Limit, the Treasurer calculated the estimated annual amount payable in
respect of such project and determined that such annual amount would not cause the
City to exceed the updated Limit and therefore, Ontario Municipal Board approval is not
required as per Section 401 of the Municipal Act, 2001, as amended, and the
regulations made thereunder;
And whereas after determining that Ontario Municipal Board approval is not required,
the Council of the City approved report ENG 12-16 on the date hereof and authorize the
Region to undertake the calling and awarding of the contract for the West Shore
_C4\1(119,- 000
By-law No. XXXX ATTAC HMENT TOREPORT#, Page 2
Neighbourhood — Flood Remediation, Breezy Drive and Vistula Drive Roads
Reconstruction project;
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the project referred to as "West Shore Neighbourhood —
Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction";
2. That the estimated costs of the project in the amount of$815,500.00 be financed as
follows:
a) the sum of$815,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 10 years;
b) the sum of$500.00 be funded from property taxes;
3. That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2016 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid.
By-law passed this 27th day of June, 2016.
David Ryan, Mayor
Debbie Shields, City Clerk
•
•
ATTACHMENT# 6"\/- 67 /g--/tO
TO Engineering & Public Works Department
Cif d ,m 1 of.....,�
Report ENG 12-16
ctinzr t,-� - .r k ` Debenture Financing for the
la \ Mk& West Shore Neighbourhood - Flood Remediation,
Breezy Drive and Vistula Drive Roads Reconstruction
ems/ \ �,E
°�/ L
° A� E,, REGION AND CITY
s R� J� v ue%— "�GP AREA
�
k.-------- 0 \-00\:2_\_:,-Ir 1 \
�v � \���— cn 1
\ \ / .(\\P /!STU�A 0R EN ART �j
O - .'4- AVE"I I GL A�iNt PARS P 0Z ,N?! coR REGION AND CITY
e ,��mI\� �,, \s>, (_ ,-i . I PROJECT
���� v Vc‘D\ r �� �� F- BF�GE AREA
\ \� 7-\ GOOR\ W I I z .�9E 1
(0> O N \ \ `:1 \-4`\l V H
LY C,� \ m\ —„J W n H�EH,ER 0R C�/, (r nY1`M
RE0',aoi-H V ° ,� \ \ \ BREEZY U ASK
GAT F?6,/1 /" C7�o
�� ✓ ��� v P LEY \ L_ I P
J�\ r -61 LY o / REGION AND CITY
Z �Ca = \ \ PROJECT
�� n \ �F NGHMAN.' �; AREA
AN • ( RE, BAS n_ UN`L V
ouF G SERA p0 `\ Y\ p LIc ill '- ` C \ ��
SGH \\ \G \ , 4\ Z ,��R/ �' /� rn
\ � CS O \ 4 f, IMF �' T
\ \ \\ '—L)'S `') s-r -
\ \\_ or_ ,f r
„,\k---
____________<,
,n,\,,,,,, _„ ,\,,-, t ,\ ,
0\,,,— ,, , , \\ \ , s „,__________
\.\,\„ ___________, \\
,
_. _ ____ ____ , _ .___, ... .____