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Report Number: ENG 13-20
Date: November 23, 2020
From: Richard Holborn
Director, Engineering Services
Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to
Connect Notion Road to Squires Beach Road
- File: A-1440
Recommendation:
1. That Council approve the hiring of AECOM Canada Ltd. for the Detailed Design Services of
the new Highway 401 road crossing to connect Notion Road to Squires Beach Road in
accordance with Purchasing Policy 10.03 (c) as the assignment has a value above
$50,000.00 and a competitive process is not being followed, and is therefore subject to the
additional approval of Council;
2. That the fee proposal dated November 6, 2020 submitted by AECOM Canada Ltd. for the
Detailed Design Services for the new Highway 401 road crossing to connect Notion Road to
Squires Beach Road in the amount of $3,284,320.14 (HST included) excluding provisional
items be accepted;
3. That the total gross project cost $3,862,677.00 (HST included), including the proposal
amount and other associated costs, and the total net project cost of $3,478,460.00 (net of
HST rebate) be accepted;
4. That the Director, Finance & Treasurer be authorized to finance the estimated net project
cost of $3,478,460.00 as follows:
a) The sum of $1,000,000.00 as approved in the 2020 Development Projects (DC Funded)
Capital Budget to be funded from a Third Party Contribution be increased to
$1,391,384.00;
b) The sum of $500,000.00 as approved in the 2020 Development Project s (DC Funded)
Capital Budget to be funded from the DC Transportation Services Reserve Fund be
increased to $1,600,092.00;
c) The sum of $500,000.00 as approved in the 2020 Development Projects (DC Funded)
Capital Budget to be funded from the Roads & Bridges Reserve Fund be revised to an
Internal Loan in the amount of $486,000.00 for a term not exceeding two years, and the
balance sum of $984.00 from property taxes;
5. That award of the proposal to AECOM Canada Ltd. be subject to the City of Pickering and
Pickering Developments Inc. entering into a cost sharing agreement with respect to funding
of the project;
ENG 13-20 November 23, 2020
Subject: Consulting Services for Detailed Design for the New Highway
401 Road Crossing to Connect Notion Road to Squires Beach Road Page 2
6. That the appropriate City staff be authorized to execute a Professional Services Agreement
between the City of Pickering and AECOM Canada Ltd. in a form satisfactory to the Director,
Corporate Services & City Solicitor and Director, Finance & Treasurer;
7. That AECOM Canada Ltd. be approved, in principle, to provide construction administration
services required to monitor and execute the construction contract with the approved
contractor when a tender has been awarded, subject to review and acceptance of the scope
of work and associated fee at that time; and,
8. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The Municipal Class Environmental Assessment (MCEA) for the New
Highway 401 Road Crossing from Notion Road to Squires Beach Road was undertaken by the
City of Pickering and Pickering Developments Inc. as co-proponents. AECOM Canada Ltd. was
retained by Pickering Developments Inc. to complete the MCEA.
The project received approval from the Minister of the Environment, Conservation and Parks on
February 25, 2020. The Environmental Study Report satisfied Phases 1 through 4 of the MCEA
process, and the co-proponents may now proceed to Phase 5 which is design and construction. A
proposal for detailed design requested from AECOM Canada Ltd. includes a work plan and fee
estimate to provide these services. Due to the complexity of the assignment, and the number of
major stakeholders involved, it is anticipated that detailed design will take up to 24 months to
complete.
The proposal from AECOM Canada Ltd. dated November 6, 2020 in the amount of $3,284,320.14
(HST included) has been reviewed by the co-proponent project team, and the work plan,
deliverables, schedule and fee are deemed acceptable.
In accordance with City Purchasing Policy section 10.03 (c) awarding the assignment requires
Council approval.
Financial Implications:
1. Proposal Amount
Proposal from AECOM Canada Ltd. dated November 6, 2020
Notion Road/Squires Beach Road/Highway 401 Crossing Detailed Design
(excludes provisional items) $2,906,478.00
HST (13%) 377,842.14
Total $3,284,320.14
ENG 13-20 November 23, 2020
Subject: Consulting Services for Detailed Design for the New Highway
401 Road Crossing to Connect Notion Road to Squires Beach Road Page 3
2. Estimated Project Costing Summary
Proposal $2,906,478.00
Associated Costs
Contingency (5%)
Provisional Items (identified in the proposal)
Various Agency Fees (permits, approvals, etc.)
145,324.00
316,496.00
50,000.00
Sub Total – Costs $3,418,298.00
HST (13%) 444,379.00
Total Gross Project Cost $3,862,677.00
HST Rebate (11.24%) ($384,217.00)
Total Net Project Cost $3,478,460.00
3. Approved Source of Funds – 2020 Development Projects (DC Funded) Capital Budget
Account Source of Funds Available Budget Required
5321.2002.6230 Third Party Contribution
Development Charges –
Transportation Services
Reserve Fund
Roads & Bridges
Reserve Fund
Internal Loan – 2 years
Property Taxes
$1,000,000.00
500,000.00
500,000.00
0.00
0.00
$1,391,384.00
1,600,092.00
0.00
486,000.00
984.00
Total $2,000,000.00 $3,478,460.00
Net project costs (over) under approved funds ($1,478,460.00)
When the 2020 Capital Budget was being prepared, a detailed scope of work and estimated cost
for the detailed design was not known. An amount that was considered reasonable at the time
was recommended for approval. The proposal dated November 6, 2020 from AECOM Canada
Ltd. contains a detailed breakdown of estimated costs by task and work activities, which
represents a true reflection of the complexities and constraints inherent in this type of assignment.
The funding allocations, including cost sharing with a third party (Pickering Developments Inc.),
was also estimated at the time of budget preparation. Since that time, the City has retained
Watson & Associates to prepare the 2020 Development Charges Update Study to capture this
project and determine the benefit to existing (BTE)/non-growth share. The cost sharing agreement
with Pickering Developments Inc. will reflect their responsibility to contribute 40 per cent of the
total project costs which include, but are not limited to, land acquisition, design, u tility relocation,
construction, construction administration and inspection, and ancillary costs, which represents the
BTE/non-growth share of the projects costs.
ENG 13-20 November 23, 2020
Subject: Consulting Services for Detailed Design for the New Highway
401 Road Crossing to Connect Notion Road to Squires Beach Road Page 4
The revised funding allocations indicated in the chart above reflects the calculations in the
proposed 2020 Development Charges Update Study and the proposed cost sharing agreement
with Pickering Developments Inc. to fund the total net project cost. Internal Loan financing is used
as a temporary source to reflect the post period benefit costs. These costs will be included in the
next Development Charges Study that is forecasted to be completed by June 2022.
Discussion: The Municipal Class Environmental Assessment (MCEA) for the New
Highway 401 Road Crossing from Notion Road to Squires Beach Road was undertaken by the
City of Pickering and Pickering Developments Inc. as co-proponents. The aim of the project was
to provide improved road network connectivity, capacity and active transportation to support
continued growth in the City of Pickering and to bring relief to the existing road infrastructure. The
project also supports the development of lands located south of Highway 401 and the rail corridor
including Durham Live.
AECOM Canada Ltd. was retained by Pickering Developments Inc. to complete the Municipal
Class Environmental Assessment (MCEA). The Notice of Completion of the Environmental Study
Report (ESR) was filed on October 18, 2019 and the project received approval from the Minister of
the Environment, Conservation and Parks on February 25, 2020 after a Part II Order was
requested.
The ESR satisfied Phases 1 through 4 of the MCEA process, namely:
Phase 1 – Problem or Opportunity
Phase 2 – Alternative Solutions
Phase 3 – Alternative Design Concepts for the Preferred Solution
Phase 4 – Environmental Study Report
Upon approval of the MCEA, the co-proponents may proceed to Phase 5 which is Design and
Construction.
In order to accelerate the detailed design required to construct the project, the co-proponents
contacted AECOM Canada Ltd. to request they submit a proposal to undertake the necessary
work. As AECOM Canada Ltd. satisfactorily completed the MCEA and have substantial
knowledge of the project and the background information that lead to the preferred design concept
they are the logical choice.
The proposal dated November 6, 2020 includes a work plan and fee estimate to provide these
services. The detailed design will be based on the MCEA approved design plan.
Generally speaking, the scope of work includes detailed design of:
widening of Notion Road to a three-lane cross-section from Kingston Road to Pickering
Parkway, including modifications at the Kingston Road/Notion Road intersection;
widening of Squires Beach Road to a three-lane cross-section from (former) Kellino Street to
Bayly Street, including modifications at the Bayly Street/Squires Beach intersection;
ENG 13-20 November 23, 2020
Subject: Consulting Services for Detailed Design for the New Highway
401 Road Crossing to Connect Notion Road to Squires Beach Road Page 5
new four-lane roadway and bridge crossing Highway 401, Metrolinx railway and CN railway,
and connecting the Notion Road/Pickering Parkway and Squires Beach Road/(former) Kellino
Street intersections; and,
(former) Kellino Street re-profiling, Pickering Parkway realignment, a new cul-de-sac at the
existing south end of Notion Road to maintain access to existing properties, and for all existing
entrances.
The scope of work also includes electrical design, landscape architecture services, geotechnical
investigations, utility relocation coordination, stormwater management, coordination of permit
applications, preparation of contract drawings, specifications and tender pa ckage, and preparation
of the construction estimate.
AECOM Canada Ltd. have noted potential provisional items as part of the work plan that may be
required to complete the detailed design assignment. These provisional items are not included in
the initial award to AECOM Canada Ltd. but are carried in the total net project cost as other
associated costs. Should any of these items be required, they will be added to the Purchase
Order.
Due to the complexity of the assignment, and the number of major stakeholders involved, it is
anticipated that detailed design will take up to 24 months to complete.
The proposal from AECOM Canada Ltd. dated November 6, 2020 has been reviewed by the co-
proponent project team, and the work plan, deliverables, schedule and fee are deemed
acceptable. Although the proposal does not include construction administration services, including
inspection, payment certificate preparation, and construction certification, it is recommended that
AECOM Canada Ltd. be approved in principle to provide these services, subject to acceptance of
a further proposal outlining the scope of work and associated fee.
In accordance with City Purchasing Policy section 10.03 (c), where a competitive process is not
followed, the Director initiating the assignment shall require Council approval to engage the
services of a particular consultant. The Director, Engineering Services is recommending Council
approval to retain AECOM Canada Ltd. for this assignment. The initial project award will consist of
tasks related to detailed design services as outlined in AECOM Canada Ltd.’s proposal dated
November 6, 2020.
Attachments:
1. Location Map
ENG 13-20 November 23, 2020 Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Page 6 RH:mjh Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. . Interim Chief Administra · Prepared/Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA Dire r, Finance & Treasurer orate Services & City Solicitor
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Engineering Services
Department Location Map
New Highway 401 Road Crossing to Connect
Notion Road to Squires Beach Road
Nov. 13, 2020 DATE:
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SUBJECTAREA
Attachment #1 to Report #ENG13-20