Public Consultation1

F.G. Gardiner Expressway Rehabilitation

Public Consultation

February 17, 2015

Public Consultation

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“Anatomy” of Gardiner Expressway

– “At-grade” section: Hwy. 427 to Dufferin Street (1955 to 1958)

– “Elevated” section: Dufferin Street to Logan Avenue (1959 to 1966)

“At Grade” - 11 km - 32 bridges/ structures

“Elevated” - 7 km - 335 spans

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Public Consultation

Rehabilitation Strategic Plan

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In 2013 the Strategic Plan for the rehabilitation of the Gardiner Expressway (developed by McCormick Rankin ) the plan:o identified immediate, short and long term rehabilitation needs of Gardiner;o developed an implementation schedule for the necessary rehabilitation works

to maintain the Gardiner in a safe and serviceable condition; and,o Took into consideration:

• previous rehabilitation work;• User impacts and associated costs;• Capital costs, Life cycle costs, Cash Flow requirements; and• Assumed traffic restrictions of no more than a single lane closure in each

direction.

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In 2014, Staff presented the Strategic Rehabilitation plan to the

Public Works Committee and City Council.

On April 2, 2014 City Council:o approved the “Accelerated Construction” approach for Gardiner

Rehabilitation reducing the traffic impacts for the anticipated work from 20

years to 12 years

o directed to report back with analysis of project delivery models and

procurement options.

On June 10, 2014, Council authorized retention of Infrastructure

Ontario for the purposes of preparing a procurement options

analysis in support of the implementation of the Strategic Plan

Rehabilitation Strategic Plan

Public Consultation

Accelerated Rehabilitation Approach

Placing Prefabricated Deck-Girder Section

Montreal: Jacques Cartier Bridge Rehabilitation

Prefabrication Facility

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Public Consultation

Evaluating Project Delivery

Various methods of project delivery includingo Traditional project delivery

Multiple contracts with private sector for design and construction of various project components

o Public private partnership (P3) One large contract with private sector consortium

for design, construction, operations and life cycle maintenance.

Public Consultation

Federal Funding Requests P3 Canada Fundo P3 Canada funding for projects delivered as P3so Business case must demonstrate positive Value for

Money for project delivery as P3 compared with traditional delivery methods

New Building Canada Fundo Projects with capital costs >$100 million must be

screened for potential delivery as P3o Business case and procurement options analysis

to be submitted

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Public Consultation

Models of PPP in Canada

Degree of Private Sector Involvement

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Design – Build

PP

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Operation & Maintenance

Build – Finance

Build – Finance – Maintain

Lease – Develop – Operate

Design – Build – Operate

Design – Build – Finance – Maintain

Design – Build – Finance – Operate

Design – Build – Finance – Operate - Maintain

Build – Own – Operate

Concession

Privatization

Public Consultation

Key Features of P3

Risk Transfer from public sector to private sector, including:o Project Delivery on time and on budgeto Long term maintenance risk

Innovationo Project structured so as to promote innovation in design and construction

Integrated Project Deliveryo Design, Construction undertaken by one consortium enhances asset

delivery meeting/exceeding expectations

Life Cycle Accountability for the Worko Maintenance of constructed work is responsibility of private sector, post

construction, over long-term concession period (eg 30 year) o ensures that asset will be maintained in good condition, and handed back to the City in

good condition at end of contract

Public Consultation

P3 Risk Transference

Traditional: Design-Bid-Build (DBB)

Owner’s Risks Bidder’s Risks

Design

Financing

HighwayMaintenance

Lifecycle

HighwayAvailability,

Performance & Asset Value

Construction

P3: Design-Build-Finance-Operate-Maintain (DBFOM)

Bidder’s Risks

Output Specifications

Design

Financing

Construction

Lifecycle

HighwayAvailability,

Maintenance Performance &

Asset Value

Owner’s Risks

Risks are transferred to the party best able to manage them.

Public Consultation

Defining Value for Money (VfM)

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• Base Costs: Design, Construction,

Operations (summer and winter maintenance)

and Rehabilitation over the concession term

• Financing Costs: Costs associated with

funding the project

• Ancillary Costs: includes additional 3rd party

advisory, legal, delivery costs etc

• Risk Retained: Risks best managed by Public

sector stay with Public sector

• The risk adjusted cost difference between

PSC and AFP is the estimated Value for

Money

• If the AFP costs are less than the PSC cost,

there is positive Value for Money by

procuring a project using AFP.

Value for Money assessment compares the cost of delivering the same project under two different delivery models, Traditional or Public Sector Comparator (PSC) to Alternative Financing and Procurement (AFP) to determine which provides a lower estimated total project cost.

Base Costs (Lower under AFP as a result of Innovation Factor set off by higher Lifecycle Costs)

Risks Retained

+ Value for Money

PSC AFP

Ancillary CostsFinancing Costs

Public Consultation

Other Canadian Transportation P3 Projects

• Winnipeg- Chief Peguis Trail

• Saskatoon North Commuter Parkway and Traffic Bridge Replacement

• Alberta- Stoney Trail (various projects)

• Quebec- Autoroutes 25 and 30• Montreal- Rebuild of Turcott Interchange• Federal- Montreal- Champlain Bridge• New Brunswick- Fredricton-Moncton Highway

• Federal- New Brunswick- Trans Canada Highway

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