HomeMy WebLinkAboutENG 11-14 call o¢ - Report to
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1 CKERI G Report Number: ENG 11-14
Date: May 12, 2014
From: Richard Holborn -'
Director, Engineering & Public Works
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works
- File: A-1440
Recommendation:
1. That Report ENG 11-14 of the Director, Engineering & Public Works regarding the
construction of the Amberlea Creek Erosion Control Project be received;
2. That Council approve the hiring of Toronto and Region Conservation Authority
(TRCA) as a single source in accordance with the City's Purchasing Policy 09.03
and 09.09;
3. That the quotation as submitted by the Toronto and Region Conservation Authority
(TRCA) for the construction and restoration of the Amberlea Creek Erosion Control
Project in the total amount of$1,946,642.58 (HST included) be accepted;
4. That the total gross project cost of$2,335,971.00 (HST included) including the.
quoted amount and other associated costs and the total net project cost of
$2,103,614.00 (net of HST rebate) for the construction of the Amberlea Creek
Erosion Control Project be accepted;
5. That Council authorize the Division Head, Finance & Treasurer to finance the total
net project cost of$2,103,614.00 as follows:
a) That the debt-financing approved in the 2010 Capital Budget for this project be
revised to an internal loan for the sum of$1,678,000.00 over a period not to
exceed ten years;
b) That the sum of$270,074.00 be funded from the Development Charges Reserve
Fund-Stormwater;
c) That the sum.of$154,812.00 be funded by a contribution from the Regional
Municipality of Durham;
d) That the sum of$728.00 to be funded from property taxes;
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 2
•
e) That the annual repayment charges in the approximate amount of$200,000.00
be included in the annual Current Budget for the City of Pickering commencing in
2015 and continuing thereafter until the internal loan financing is repaid;
6. That a copy of this report be forwarded to the Regional Municiplaity of Durham; and
7. That the appropriate City of Pickering officials be authorized to take necessary
action to give effect thereto.
Executive Summary: The City of Pickering, in partnership with Toronto and Region
Conservation Authority (TRCA), completed the Amberlea Creek Erosion Control Project
Class Environmental Assessment (Class EA) and received Ministry of Environment
approval in February of 2014.
The project planning has been managed on behalf of the City of Pickering by TRCA in
accordance with the Conservation Ontario's Class Environmental Assessment for
Remedial Flood and Erosion Control Projects (2002, amended in 2013). The project is
located on lands that are regulated by the TRCA and are upstream of a Provincially
Significant Wetland. The Vistula Ravine is also designated as an Environmentally
Sensitive Area and the nature of the work is highly sensitive. As such, staff believe that
TRCA would be best suited to perform the construction due to their considerable
expertise in this specialized type of construction, and aptitude for implementation of
erosion control works.
The Manager, Supply & Services is authorized to make single or sole source purchases
without competitive bids, and enter into a contract if any of the conditions or examples in
Purchasing Policy Item 09.03 or Item 09.04 apply. The single source example Item
09.03(d) —the extension or reinstatement of an existing contract would prove most cost
effective or beneficial — most closely represents the request. Additionally, the
construction work is to be performed on lands adjacent to lands owned by TRCA, and in
an environmentally sensitive area and Provincially Significant Wetland. ,
The quotation of$1,946,642.58 (HST included) provided by TRCA has furthermore
been reviewed by staff and the design consultant and warranted to be reflective of the
costs, and represents good value for the cost.
As this project is proposed to be single sourced, in accordance with the City of Pickering
Purchasing Policy, Item 09.09, a single or sole source purchase exceeding $125,000.00
is subject to Council approval.
In accordance with Purchasing Policy Item 09.10, the Manager, Supply & Services and
appropriate Director or designate is authorized to enter into negotiation without
competitive bids and enter into a contract if deemed advantageous.
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 3
Financial Implications:
•
1. Quoted Amount
Construction and Restoration Works
TRCA Quotation _ $1,722,692.55
HST (13%) 223,950.03
Total Gross Quoted Cost $1,946,642.58
2. Project Costing Summary— Erosion Control Construction and Restoration
Works
Quotation for Construction and Restoration Works $1,722,693.00
Contingency (20%) 344,538.00
Total . 2,067,231.00
HST (13%) . 268,740.00
Total Gross Project Cost 2,335,971.00
HST Rebate (11.24%) (232,357.00)
Total Net Project Cost $2,103,614.00
•
3. Approved Source of Funds — Erosion Control Construction and Restoration
Works 2010 Capital Budget 5321.1005.6253
Source of Funds Available Budget Required
Debt— 10 Year $1,980,543.00 $0.00 .
Internal Loan — 10 Year . 0.00 . 1,678,000.00
Development Charges 270,074.00 270,074.00
Reserve Fund-Stormwater
Taxes 5 0.00 728.00
Regional Municiplaity of Durham 0.00 154,812.00
Total Funds $2,250,617.00 $2,103,614.00
Net Project Cost under (over) Approved Funds $147,003.00
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 4
4. Breakdown of Costs between City and Region
City Region Total
Quoted Amount $1,595,915.00 $126,778.00 $1,722,693.00
Construction 319,182.00 25,356.00 344,538.00
Contingency
Total $1,915,097.00 $152,134.00 $2,067,231.00
Net HST Cost to City 33,705.00 2,678.00 36,383.00
(1.76%)
Total Cost to City $1,948,802.00 $154,812.00 $2,103,614.00
5. Complete Project Costing Summary— EA, Design, Approvals & Erosion
Control Construction and Restoration Works
Construction and Restoration Works $1,722,693.00
Associated Costs
Contingency (20%) 344,538.00
Subtotal 2,067,231.00
Previously Approved Project Phases (EA, Design &Approvals) 471,092.00
Total 2,538,323.00
HST (13%) ' 329,982.00
Total Gross Project Cost 2,868,305.00
HST Rebate (11.24%) (285,308.00)
Total Project Cost $2,582,997.00
The 2010 Development Projects (DC Funded) Capital Budget included $2,730,000.00
for the Amberlea Creek Class EA, detailed design and construction phases of the
project. The Class EA and design components of the project was $479,383.00
including disbursements, net of HST. This component has been approved by Council
under report CS 21-12 (Resolution #82/12). The remainder of the $2,730,000.00 in
funds, $2,250,617.00, is available for the implementation of the preferred alternative as
identified in the Amberlea Creek Class EA. TRCA has provided the City of Pickering
with a quote of$1,946,642.58 (HST included) to complete all works associated with the
Amberlea Creek Erosion Control Project.
The total gross project cost for the erosion control construction and restoration works is
estimated at $2,335,971.00 (HST included) and the total net project cost is estimated at
$2,103,614.00 (net of HST rebate). See Table 2.
This project was originally approved as a debt financed project for the City's share of
66 the cost in the amount of$2,402,400.00. From the time this project was approved in
Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 5
until 2012, there was sufficient funds built-up in the DC-City's Share Reserve. When
the Class EA component proceeded in 2012, the City's share of the Class EA and
detailed design cost in the amount of$421,857.00 was funded from the DC - City's
Share Reserve instead of debt financing. This reduces our dependent on debt financing
by 18% of what was originally approved.
Recommendation 5a provides the Treasurer with the authority to finance the project
through an internal loan in contrast to external debenture financing for the same period
(ten years). The internal loan is a financing technique where the City borrows from
itself through a reserve fund. By employing an internal borrowing strategy, the City will
save money by avoiding legal and financing fees, plus the Treasurer has the authority of
setting a competitive borrowing rate that can be slightly lower than the market rate, and
it generates a higher rate of return (interest) then what the City currently earns on its
investments. For these reasons, the Treasurer is recommending that the project
financing be changed from external debt financing to an internal loan.
Table 4 provides a breakdown of costs between the City and the Region components.
When the project was first budgeted in 2010, the extent of the restoration work was
unknown. Upon completion of the Class EA and detailed design work, it was determined
that the Regional Municipality of Durham's stormwater culvert at the upstream end of
Amberlea Creek at Bayly Street, which conveys flows from the entire Amberlea Creek
subwatershed required remedial works as part of this project. The City is coordinating
the remedial works associated with the culvert on behalf of the Region. The Region has
approved their share of the project and will be reimbursing 100% of the cost back to the
City.
Table 5 provides the complete project costing summary including the Class EA
component that was previously approved and funded from Development Charges
Reserve Fund - Stormwater and D.C.- City's Share Reserve. Financing for this
component is not being sought for in this report.
The City's Purchasing Policy under Section 06.11 requires projects over $100,000.00 to
be advertised and tendered; however, the City's Purchasing Policy item 09.09 allows
the project to be single sourced subject to Council approval.
Discussion: The Amberlea Creek Erosion Control Project was identified as one of the
key priority projects of the Frenchman's Bay Stormwater Management Master Plan,
which Pickering Council endorsed on April 19, 2010 (Resolution #72/10). On June 18,
2012, City of Pickering Council authorized TRCA to assume the leadership role in a
partnership with the City of Pickering to undertake the planning, detailed design, and
approvals for the project (Resolution #82/12). The planning phase of this project was
carried out under Conservation Ontario's Class Environmental Assessment for
Remedial Flood and Erosion Control Projects, with the purpose of providing long term
protection against slope instability and channel erosion within Amberlea Creek, in an
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of.Construction and Restoration Works Page 6
effort to reduce the risk to public safety, and prevent future property damage. The Class
EA was filed with the Ministry of Environment for review on August 21, 2013 and
approval of the Class EA was received from the Minister's office on February 3, 2014,
allowing the project to be implemented as planned.
A risk assessment revealed 15 erosion hazards and maintenance sites along 600
metres of Amberlea Creek, south of Bayly Street, that require remedial works to
address the risk to existing residential structures and infrastructure.
As part of the Class EA process, Aquafor Beech Limited and Terraprobe were retained
to complete a risk assessment, which included a detailed review and analysis of the
fluvial geomorphological and geotechnical conditions of Amberlea Creek and assist with
the development of alternative long term remedial solutions. During the review of
Amberlea Creek 15 erosion hazards and maintenance sites along the 600 metres of
watercourse south of Bayly Street were identified that require remedial works to address
the risk to existing residential structures and infrastructure.
Amberlea Creek was divided into three reaches. Reach 1 required only routine
maintenance works, Reach 2, required valley and stream based works at three
sites, and Reach 3, required complete channel realignment and remedial works at
seven erosion sites.
To resolve these hazards, Amberlea Creek was divided into three reaches and a range
of solutions were developed and evaluated for each reach. The three reaches were
delineated based on relatively similar sections of channel relating to width and depth,
valley setting, floodplain access, sinuosity, gradient, and geology. A range of
alternatives were then developed and evaluated for each of the reaches. Through the
evaluation of the alternatives, an overall preferred alternative was identified for the
Amberlea Creek Erosion Control Project, which is described as follows:
• Reach 1 (downstream end of Amberlea Creek, near Frenchman's Bay and the
Amberlea Creek pedestrian bridge): Only simple maintenance works to protect
existing infrastructure are required in Reach 1.
• Reach 2 (middle section of Amberlea Creek): Valley and stream based works are
required at three separate erosion sites.
• Reach 3 (upstream end of Amberlea Creek, includes Regional Municipality of
Durhamculvert at Bayly Street): Complete realignment of the river channel will be
required within the reach, and remedial works will be required at seven erosion sites.
During construction, access to the Amberlea Creek Erosion Control Project site will be
provided by a temporary access road constructed from the West Shore Community
Centre.
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 7
•
Amberlea Creek and Vistula Ravine are located within an important migratory zone, and
provide critical refuge and feeding habitat for birds during migration. Due to their
proximity to Frenchman's Bay, Amberlea Creek and Vistula Ravine also provide habitat
for a variety of wildlife species and are recognized by TRCA as one of the last
opportunities to enhance the habitat for fish, invertebrates, birds, small mammals and
herpetiles in the Frenchman's Bay area. As such, TRCA has ensured that the project
design includes restoration of riparian habitat, including two ephemeral wetlands and
instream habitat features to improve fisheries habitat and refuge areas.
Site restoration works includes 1.0 ha of restoration planting and seeding, which
includes replacement of non-native trees, all ash trees and trees damaged from
the ice storm, with native species.
As part of the site restoration activities, TRCA has prepared a planting plan that
includes approximately 1.0 ha of restoration planting and seeding that aims to re-
establish native vegetation and improve the vegetation community composition within
the ravine, and to ensure that forest cover is fully restored upon completion of the
project. This planting plan includes replacement of non-native trees, all ash trees within
the ravine, and trees damaged during the 2013 ice storm with site appropriate native
species. The restoration plan developed by TRCA also includes the provision of habitat
features such as nesting boxes.
TRCA has implemented erosion control works at over 500 locations across its
jurisdiction over the last40 years on behalf of or in partnership with their municipal
partners. This includes a diverse range of erosion and related restoration projects
ranging from several thousand to millions of dollars in construction costs. This
experience has been demonstrated throughout the planning and detailed design
process of this project to date. Based on TRCA's expertise, ability to undertake the
majority of the planned works in house, and in-depth knowledge of the sensitive site
conditions and the project design, City of Pickering staff requested that TRCA provide a
quotation for construction of the Amberlea Creek Erosion Control Project.
As outlined in the letter of approval to proceed with the project, received from the
Minister of the Environment on February 4, 2014, TRCA will obtain all required permits
and approvals, and ensure compliance with the mitigation measures as outlined in the
Environmental Assessment. A permit from TRCA will not be required if TRCA
undertakes construction on behalf of the City of Pickering. TRCA will implement the
project in the manner it was developed and designed, inclusive of all mitigating
measures and in accordance with the Class EA, including any commitments made to
the affected agencies and members of the public.
Due to the location of the project and TRCA's considerable expertise in this
specialized type of construction, they are best suited to perform the works.
Due to the environmentally sensitive location that the works will be undertaken (Vistula
Ravine is designated an Environmentally Sensitive Area and the downstream
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 8
Provincially Significant Wetland), TRCA has also prepared a comprehensive
environmental mitigation strategy in order to secure approval of the Class EA and to
satisfy the needs of the various regulatory approvals required to facilitate construction.
This mitigation strategy prescribes the use of best environmental management practices
during construction to safeguard the aquatic resources on-site and to reduce potential
negative effects to downstream habitat at Frenchman's Bay, owned by TRCA.
The Region of Durham has a stormwater culvert at the upstream end of Amberlea
Creek at Bayly Street, which conveys flows from the entire Amberlea Creek
subwatershed. The City is coordinating the remedial works associated with the culvert
on behalf of the Region. The Region has approved their portion of the project and will
be reimbursing 100% of the cost back to the City, estimated at $154,812.00 including
net HST.
As the proposed works are predominantly adjacent to TRCA lands and in a highly
environmentally sensitive area, staff recommend that TRCA be awarded the contract to
for the construction and restoration works for the Amberlea Creek Erosion Control
Project.
Attachments:
1. Location Plan
Prepared By: ApprovedlEndorsed By: •
•
de
Marilee Gadzovski, M.Sc.(Eng.), P.Eng. Ri and Holborn, P. Eng.
Division Head, !rector, Engineering & Public Works
Water Resources &Development Services
Caryn Kong, BA, CGA Stan Karwowski, MBA, CPA, CMA
Senior Financial Analyst, Division Head, Finance & Treasurer
Capital & Debt & Management
MG:mg
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Report ENG 11-14 May 12, 2014
Subject: Amberlea Creek Erosion Control Project
Single Source of Construction and Restoration Works Page 9
Recommended for the consideration
of Pickering Ci Coun it
Aft/Zs, z0i4
Tony Prevedel, P.Eng.
Chief Administrative Officer
•
.
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ENGINEERING&PUBLIC ATTACHMENT FOR ENGINEERING & PUBLIC WORKS Cilll°0
WORKS DEPARTMENT REPORT ENG 11-14 ". Iii--__—
AMBERLEA CREEK EROSION CONTROL PROJECT WCONION.10C
SCALE: N.T.S. APRIL 25/2014
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