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HomeMy WebLinkAboutJanuary 8, 2024 - Special Council Special Council Meeting Agenda January 8, 2024 Hybrid Electronic Meeting Council Chambers Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Members of the public may observe the open, public portion of the meeting proceedings by accessing the livestream. A recording of the meeting will also be available on the City’s website following the meeting. A Special Meeting of Council has been scheduled and parts of this Meeting will be in-camera in accordance with the provisions of Section 239(2) of the Municipal Act and Procedure By-law, in that the matters to be discussed relate to: f) advice that is subject to solicitor-client privilege, including communications necessary for that purpose; i) a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence to the municipality or local board, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization; j) a trade secret or scientific, technical, commercial or financial information that belongs to the municipality or local board and has monetary value or potential monetary value; and, k) a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the municipality or local board. Page 1. Roll Call 2. Disclosure of Interest 3. Delegations Members of the public looking to provide a verbal delegation to Members of Council for matters under Section 4 of the agenda may do so either in person, or through a virtual connection into the meeting. For more information, and to register as a delegate, visit www.pickering.ca/delegation, and complete the online delegation form or email clerks@pickering.ca. The list of delegates who have registered to speak will be called upon one by one by the Chair in the order in which they have registered. A maximum of 5 minutes shall be allotted for each delegation. Special Council Meeting Agenda January 8, 2024 Hybrid Electronic Meeting Council Chambers Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Please be advised that your name will appear in the public record and will be posted on the City’s website as part of the meeting minutes. 4. Matters for Consideration 4.1 Director, Engineering Services, Report ENG 01-24 1 Amendment to the Road Servicing Agreement with Tribute (Liverpool) Limited - Walnut Lane Extension Recommendation: 1. That the Road Servicing Agreement with Tribute (Liverpool) Limited to facilitate for the construction of the Walnut Lane extension between Kingston Road and Liverpool Road be revised to reflect an increase in the total project cost in the amount of $1,097,815.00 (plus HST); 2. That the Mayor and City Clerk are hereby authorized to execute the revised Road Servicing Agreement between the City of Pickering and Tribute (Liverpool) Limited subject to revisions acceptable to the Director, Engineering Services and the Director, Corporate Services & City Solicitor; 3. That Council authorize the Director, Finance & Treasurer to finance the additional project cost of $1,240,531.00 (HST included) and net project cost of $1,117,137.00 (net of HST rebate), above the approved 2022 and 2023 Capital Budget amounts, as outlined in the revised Road Servicing Agreement as follows: a) the additional sum of $279,284.00 to be funded from a transfer from the City’s DC Share Reserve; b) the additional sum of $837,853.00 to be funded from a transfer from the Development Charges -Transportation Reserve Fund; and, 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Special Council Meeting Agenda January 8, 2024 Hybrid Electronic Meeting Council Chambers Immediately Following the Executive Committee Meeting For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 5.In Camera Matters (Main Committee Room) 5.1 Confidential Verbal Update from the Chief Administrative Officer andReceipt of Legal Advice from J. Mark Rodger, Partner, BLG LLP Re: Elexicon Corporation Strategic Initiatives 6.Confidential Special Council – Public Report (Council Chambers) 7.Confirmatory By-law 8.Adjournment Report to Council Report Number: ENG 01-24 Date: January 8, 2024 From: Richard Holborn Director, Engineering Services Subject: Amendment to the Road Servicing Agreement with Tribute (Liverpool) Limited -Walnut Lane Extension -File: A-1440 Recommendation: 1.That the Road Servicing Agreement with Tribute (Liverpool) Limited to facilitate for the construction of the Walnut Lane extension between Kingston Road and Liverpool Road be revised to reflect an increase in the total project cost in the amount of $1,097,815.00 (plus HST); 2.That the Mayor and City Clerk are hereby authorized to execute the revised Road Servicing Agreement between the City of Pickering and Tribute (Liverpool) Limited subject to revisions acceptable to the Director, Engineering Services and the Director, Corporate Services & City Solicitor; 3.That Council authorize the Director, Finance & Treasurer to finance the additional project cost of $1,240,531.00 (HST included) and net project cost of $1,117,137.00 (net of HST rebate), above the approved 2022 and 2023 Capital Budget amounts, as outlined in the revised Road Servicing Agreement as follows: a)the additional sum of $279,284.00 to be funded from a transfer from the City’s DC Share Reserve; b)the additional sum of $837,853.00 to be funded from a transfer from the Development Charges -Transportation Reserve Fund; and, 4.That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: Through Resolution #988/22 Council approved entering into a Road Servicing Agreement with Tribute (Liverpool) Limited related to the design and approvals component of the Walnut Lane extension between Kingston Road and Liverpool Road. This component has a total project cost of $643,700.00 (plus HST) funded 25 per cent from the City’s DC Share Reserve and 75 per cent from the Development Charges Transportation Reserve Fund. Through Resolution #169/23 Council approved entering into a Road Servicing Agreement with Tribute (Liverpool) Limited related to the construction component. The Road Servicing Agreement included a construction amount of $7,768,248.00 (plus HST) funded 25 per cent - 1 - ENG 01-24 January 8, 2024 Subject: Amendment to the Road Servicing Agreement with Tribute (Liverpool) Limited Page 2 from the City’s DC Share Reserve and 75 per cent from the Development Charges Transportation Reserve Fund. These amounts totaling $8,411,948.00 (plus HST) were approved in the 2022 and 2023 Capital Budgets. Tribute (Liverpool) Limited has tendered the project and the low bids received and recommended resulted in the need for additional funds. After a value engineering exercise, the additional amount required is $1,097,815.00 (plus HST) which includes a construction contingency of five per cent. Staff is recommending that Council approve the additional amount of $1,097,815.00 (plus HST) required and that the Road Servicing Agreement for construction be amended to reflect the increased cost. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to Pickering Strategic Plan Priority 3: Advance innovation & responsible planning to support a connected, well-serviced community. The extension of Walnut Lane to Liverpool Road will enhance the City’s transportation infrastructure. The recommendations in this report also respond to Pickering Strategic Plan Priority 2: Advocate for an inclusive, healthy & welcoming community. New development adjacent to the Walnut Lane extension will include affordable dwelling units made available through the involvement of Habitat for Humanity. Financial Implications: In the 2022 Capital Budget an amount of $6,550,300.00 (net of HST rebate) was approved for the completion of design, approvals, permits and construction of the Walnut Lane extension. The amount included $655,029.00 (net of HST rebate) for consulting soft costs, and $5,895,271.00 (net of HST rebate) for construction costs based on the cost estimate at that time. The estimated cost for the design, construction and inspection/contract administration for the Walnut Lane extension was updated and increased to $8,560,000.00 (net of HST rebate) due to current market conditions and the requirement for a larger span structure over Pine Creek. The 2022 Development Charges Study as approved by Council reflects the revised cost estimate. In the 2023 Capital Budget – Development Projects (DC Funded) account, additional funds in the amount of $2,009,700.00 (net of HST rebate) was approved to bring the estimated total net project cost up to the $8,560,000.00 (net of HST rebate) required. Tribute (Liverpool) Limited has tendered the project and the low bids received and recommended resulted in the need for additional funds. After a value engineering exercise, the additional amount required is $1,097,815.00 (plus HST). The additional amount required includes a construction contingency of five per cent. - 2 - ENG 01-24 January 8, 2024 Subject: Amendment to the Road Servicing Agreement with Tribute (Liverpool) Limited Page 3 1.Road Servicing Agreement Amount Road Servicing Agreement – Construction $7,768,248.00 Additional amount required 1,097,815.00 Total Project Cost (excl taxes) 8,866,063.00 HST (13%) 1,152,588.00 Gross Project Cost $10,018,651.00 HST Rebate (11.24%) (996,545.00) Net Project Cost to City (incl 1.76%) $9,022,106.00 2.Estimated Project Cost Summary Road Servicing Agreement – Design $643,700.00 Road Servicing Agreement – Construction (revised) 8,866,063.00 Total Project Cost $9,509,763.00 HST (13%) 1,236,269.00 Total Gross Project Cost $10,746,032.00 HST Rebate (11.24%) (1,068,897.00) Total Net Project Cost to City (incl 1.76%) $9,677,135.00 3.Approved Source of Funds Available for Construction Expense Code Source of Funds Budget Required 2022 Budget: C10575.1801 City's Share DC Reserve $1,473,817.00 $1,473,817.00 C10575.1801 DC Transportation Reserve Fund 4,421,453.00 4,421,453.00 2023 Budget: C10575.1801 City’s Share DC Reserve 502,425.00 502,425.00 C10575.1801 DC Transportation Reserve Fund 1,507,275.00 1,507,275.00 Additional Funds Required C10575.1801 City’s Share DC Reserve 0.00 279,284.00 C10575.1801 DC Transportation Reserve Fund 0.00 837,853.00 Total $7,904,970.00 $9,022,107.00 Under/(Over) Approved Funds ($1,117,137.00) - 3 - ENG 01-24 January 8, 2024 Subject: Amendment to the Road Servicing Agreement with Tribute (Liverpool) Limited Page 4 Over the last few years, construction costs have increased. The City’s commitment to this project is demonstrated by increasing the original budget two times, over the last few years. Discussion: Tribute (Liverpool) Limited are constructing a residential high-rise development consisting of three towers on the west side of Liverpool Road having heights of 46, 49 and 53 storeys, containing a total of 1,779 units and 1,155 square metres of commercial space at grade. The development requires appropriate public road infrastructure be provided in conjunction with the development. The public road infrastructure includes the Walnut Lane extension. Report ENG 21-22 was considered by Council at the September 20, 2022 Council Meeting. Through Resolution #988/22, Council authorized the Mayor and City Clerk to execute the Road Servicing Agreement to facilitate the design and approvals for the construction of the Walnut Lane extension between Kingston Road and Liverpool Road. The net project cost of $655,029.00 (net of HST rebate) which was approved in the 2022 Capital Budget, was included in the agreement as the project cost. Report ENG 05-23 was considered by Council at the April 24, 2023 Council Meeting. Through Resolution #169/23, Council authorized the Mayor and City Clerk to execute the Road Servicing Agreement to facilitate construction. The balance of funds approved in 2022 ($5,895,271.00 net of HST rebate) plus the funds approved in the 2023 Capital Budget ($2,009,700.00 net of HST rebate), were included in the agreement as the project cost. The total cost committed for construction was $7,904,971.00 (net of HST rebate). Tribute (Liverpool) Limited has tendered the project based on 90 per cent design. Tribute received five competitive bids for the road, storm sewer and bridge works, and four competitive bids for the streetlight and traffic signal works, however the two low bids when combined exceeded the total amount committed for construction. The low bids submitted by KAPP Infrastructure Ltd. and Black & McDonald would have required a combined increase of $1,051,071.00 (plus HST) with no construction contingency. City staff met with Tribute to analyze the low bids and to undertake a value engineering exercise to consider options to reduce the construction cost. By removing the multi-use path on the north side of Walnut Lane, and the two storm sewer outfall access roads, savings of approximately $322,000.00 (plus HST) were realized. There were also savings of approximately $28,000.00 (plus HST) in the streetlight and traffic signal component of work. As a precautionary measure, a five per cent construction contingency of $397,091.00 has been added to the revised total project cost. - 4 - ENG 01-24 January 8, 2024 Subject: Amendment to the Road Servicing Agreement with Tribute (Liverpool) Limited Page 5 Attachment: 1. Location Map Approved/Endorsed By: Original signed by: Richard Holborn, P. Eng. Director, Engineering Services Original signed by: Paul Bigioni Director, Corporate Services & City Solicitor Original signed by: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer RH:mjh Recommended for the consideration of Pickering City Council Original signed by: Marisa Carpino, M.A. Chief Administrative Officer - 5 - Engineering Services Department DATE: N.T.S. January 2, 2024 Location Map ENG 01-24 -ot,o/·­P1CKER1NG Attachment #1 to Report ENG 01-24 - 6 -