Agenda Item # , , Page # , IC; la4

TO:

FROM:

SUBJECT

CHAIR AND MEMBERS BUILT AND NATURAL ENVIRONMENT COMMITTEE

MEETING ON MARCH 7,201 1 PAT MCNALLY, P.ENG.

GENERAL MANAGER OF ENVIRONMENTAL 8 ENGINEERING SERVICES & CITY ENGINEER

CONTRACT AWARD: TENDER NO. 11-10 SARNIA ROAD IMPROVEMENTS, PHASE 1 - CPR GRADE SEPARATION

RECOMMENDATION

That, on the recommendation of the General Manager of Environmental & Engineering Services & City Engineer, the following actions BE TAKEN with respect to the award of a contract for the Sarnia Road Improvements, Phase 1 - CPR Grade Separation project (TS1349):

the bid submitted by McKay-Cocker Construction Limited, 1665 Oxford Street East, P.O. Box 7345, London, Ontario, N5Y 5R9, at its submitted tendered price of $9,985,910.00, excluding HST, for the Sarnia Road CPR Bridge project, BE ACCEPTED - it being noted that the bid submitted by McKay-Cocker Construction Limited was the lowest of six bids received and meets the City’s specifications and requirements in all areas;

Dillon Consulting Limited, 130 Dufferin Avenue, Suite 1400, London, Ontario, N6A 5R2 BE APPOINTED Consulting Engineers for the contract administration and resident supervision of the said project in the amount of $618,915, excluding HST, in accordance with Section 15.2 (9) of the Procurement of Goods and Services Policy;

the consulting fee for the project identified in (b), above, which is in accordance with the estimate on file, and which is based upon the Fee Guideline for Professional Engineering Services recommended by the Ontario Society of Professional Engineers BE APPROVED;

future additional annual operating costs of $8,806 BE APPROVED as a first priority commitment from available assessment growth in 2012 subject to final budget approval;

the financing for this project BE APPROVED as set out in the Sources of Financing Report attached hereto as Appendix “ A ;

the Civic Administration BE AUTHORIZED to undertake all the administrative acts that are necessary in connection with this project;

the approval given herein BE CONDITIONAL upon the Corporation entering into a formal contract and issuing purchase order(s) for the material to be supplied and the work to be done relating to this project (Tender 11-10);

the Mayor and City Clerk BE AUTHORIZED to execute any contract or other documents, if required, to give effect to the above recommendations;

the grade separation legal agreement between the Canadian Pacific Railway Company and the Corporation of the City of London attached hereto as Appendix “ B , BE APPROVED in principle; and,

the General Manager of Environmental & Engineering Services and City Engineer BE AUTHORIZED to execute the grade separation legal agreement and any other ancillary project agreements with Canadian Pacific Railway Company.

Agenda Item # Page # mbl PREVIOUS REPORTS PERTINENT TO THIS MATTER I

Sarnia Road - CPR Bridge Replacement Review - October 15,2007

Environment and Transportation Committee - November 10,2008 -Appointment of Consulting Engineer

Environment and Transportation Committee - January 11, 2010 - Environmental Assessment

Environment and Transportation Committee - May 10,2010 - Design Award

Environment and Transportation Committee - September 27,201 0 - Samia Road Bridge Replacement, Status of CPR Negotiations

Built and Natural Environment Committee - January 31, 201 1 - Sarnia Road Bridge Improvements and Existing Bridge Relocation

BACKGROUND 11 Purpose:

This report recommends award of a tender to a contractor and continuation of engineering consulting services for Phase 1 of the Sarnia Road Improvements project - reconstruction of the Canadian Pacific Railway (CPR) Grade Separation. It also asks Council to approve the legal agreement that has been negotiated with CPR and to delegate signing authority to the General Manager of Environmental & Engineering Services and City Engineer.

Discussion:

Background

An Environmental Assessment (EA) was completed in January, 2010 which recommended the construction of a new structure over the CPR line on Sarnia Road.

Sarnia Road between Hyde Park Road and Wonderland Road North is classified as an arterial road and is currently comprised of two through lanes. The 2004 Transportation Master Plan, and 2009 Development Charges Background Study identify this segment of road as requiring improvements. Severe curves on the approaches to the existing bridge over the CPR track reduce traffic to one lane and force vehicles to alternate. The Growth Management Implementation Strategy scheduled the bridge replacement in 201 1 and the recent Environmental Study Report (ESR) confirms this need as the first phase of improvements.

This tender represents Phase I of the project, reconstruction of the railway grade separation and associated road approaches. The new bridge will have concrete walls and precast concrete beams, and will be covered with a thin layer of earth, similar to a culvert. The limits of the road works in the contract extend approximately 300 m in both directions, with storm sewer tie-ins extending slightly further. The EA recommended four-lanes for the east half of the corridor with the transition from two lanes to four in the area of the grade separation. Consequently, the bridge has been designed to a four lane width to accommodate the transition and potential future four-laning throughout the corridor. The new bridge and road work includes bike lanes. The additional width for four lanes represents only a 17% increase in the size of the bridge and eliminates the need for a future expansion at a much higher cost. The road will initially operate with two lanes within the limits of this work until the adjacent four-laning is extended easterly to Wonderland Road. The timing of the four-lane widening to Wonderland Road will be coordinated with the widening east of Wonderland Road.

Road Closure

The proposed new bridge will be located at the site of the existing structure as recommended by the EA. As such, reconstruction of the grade separation necessitates removal of the existing bridge before the new crossing can be constructed. Therefore, it is necessary to close Sarnia Road at the bridge location for the duration of the contract. Construction is currently anticipated

Agenda Item # Page # p q i q to begin in late March and extend until the end of October, approximately seven to eight months.

The bridge has been closed twice in recent years due to bridge repairs for a total of five months. The upcoming road closure has been communicated to property owners along the corridor by means of a recent notice of public meeting. The construction staging has also been discussed with London Transit. Additional notification is being provided, specifically to local businesses, school boards, Canada Post and City Operations by additional communications and a news release. The current bridge cannot accommodate buses or large trucks so no negative impacts are anticipated for these types of operators.

CPR Neuofiations

The project team has communicated with CPR throughout the EA and detail design to deal with technical approvals and to establish a cost sharing agreement for the grade separation reconstruction.

The cost sharing discussions have been guided by the Canadian Transportation Agency (CTA) document Guidelines on Apportionment of Costs of Grade Separations. The CTA is an independent administrative tribunal of the Government of Canada regulated by the Canada Transportation Act. The CTA Guidelines define the cost apportionment ratios and scope of works that are subject to cost sharing for railway projects such as this.

The Guidelines state that for projects such as this, which are due primarily to road development, the costs are to be shared 85% road authority / 15% railway company. Since this project was initiated by the City based on road capacity needs, and no additional rail lines are proposed, this ratio is warranted for the project.

The scope of cost-shared works is limited to what the Guidelines define as the basic grade separation. The basic grade separation includes removal of the existing bridge and construction of a new structure satisfying present day needs such as two lanes, sidewalks and bike lanes. The basic grade separation is typically limited to the structure. However, for this project agreement was reached to include 335 m of the realigned road approaches given it is integral to the replacement of the structure.

The combination of apportionment ratio and scope of shared works results in an estimated contribution from CPR of $1.78 M plus H.S.T., based on pre-tender estimates. The final value is to be based on actual costs and is expected to be in the order of $1.34 M plus H.S.T. since the tender value is less than the pre-tender estimate.

The Guidelines state that current maintenance obligations shall be considered going forward. Consequently, the legal agreement includes a 17% City I 83% Railway split of future structure maintenance costs based on the railway's current obligations to maintain a two lane crossing. The City will be 100% responsible for the road on top of the structure.

The legal agreement, attached in Appendix "B", has been reviewed by, and is acceptable to the City's Legal Department. The insurance requirements and liquidated damages liabilities associated with construction of the grade separation have been transferred to the contractor through provisions in the contract.

Heritaue Considerations

The EA considered a grade separation reconstruction alternative that would allow the existing bridge to remain at its current location. The estimated cost of this alternative was $3.9 M higher than the recommended alternative and had significant property impacts. Consequently, the removal of the existing bridge was recommended in the EA and subsequently approved.

In December, 201 0, three relocation options were presented to Council with associated capital cost estimates ranging from $790,000 to $1.28 M plus additional operating costs. CPR indicated a willingness to transfer ownership of the bridge to the City for a future heritage related relocation initiative but provided no additional financial contribution beyond its portion of the removal costs, The Built and Natural Environment Committee considered the future of the bridge based on the EA heritage assessment, a statement of significance prepared by London

Agenda Item # Page # nn

CONTRACTOR

1. McKay-Cocker Construction Limited

2. McLean Taylor Construction Ltd.

3. Facca IncorDorated

TENDER PRICE CORRECTED TENDER SUBMITTED PRICE

$9,985,910.00 _ _ $ 10,240,478.47 _- $ 10,241,142.50 $ 10,241,418.50

4. Looby Builders Limited $10,336,510.16 -- 5.

6.

AECON Construction & Materials Ltd. $ 11,013,167.95 _- BOT Engineering & Construction Ltd. $ 12,296,460.18 __

Agenda Item # Page #

pqbl Conclusions:

1. Award of this contract will allow the project objectives to be met within the available budget.

2. The use of Dillon Consulting Limited for engineering services on this contract is in the best financial and technical interests of the City.

3. The execution of a legal agreement with CPR is required to proceed with this project.

4. Anticipated additional annual operating costs to the Environmental and Engineering Services budget in 2012 and subsequent years associated with the approval of this project is $8,806.

Acknowledgements:

This report was prepared with assistance from Doug MacRae, P.Eng. Transportation Design Engineer, and Joshua Ackworth, Technologist I I of the Transportation Planning & Design Division.

TlON PLANNING & DESIGN

11 RECOMMENDED BY:

PAT McNALLY, P.ENG GENERAL MANAGER ENVIRONMENTAL 81 ENGINEERING SERVICES & CITY ENGINEER

REVIEWED BY:

~

DAVID A. LECKIE, P.ENG. DIRECTOR. ROADS & TRANSPORTATION ENVIRONMENTAL & ENGINEERING SERVICES

DMIjta

Attach: Appendix "A" -Sources of Financing Appendix " B - Draft Agreement between the Corporation of the City of London and Canadian Pacific Railway Company

cc. McKay-Cocker Construction Limited, 1665 Oxford Street East, P.O. Box 7345, London, On, N5Y 5R9 McLean Taylor Construction Limited, 25 Water Street North, St. Marys P.O. Box 190, N4X 161 Facca Incorporated, 2097 County Road 31, R.R.l Ruscom, Ontario, NOR 1RO Looby Builders Limited, 3992 Matilda Street, Dublin, Ontario NOK 1EO AECON Construction and Materials Limited, 20 Carlson Court, Suite 800, Toronto, Ontario, M9W 7K6 BOT Engineering and Construction Limited, 1224 Speers Road, Oakville, Ontario, L6L 2x4 Dillon Consulting, 130 Dufferin Avenue, Box 462, London, Ontario, N6A 4W7

#11013

March 1,2011 (Award Contract)

Chair and Members Built and Natural Environment Committee

APPENDIX 'A'

RE: Sarnia Road Improvements, Phase 1 - CPR Grade S I ' I I Capital Project TS1349. Sarnla Road Widening CPR Bridge Replacement McKayCocker Construction Limited - $9,985,910 (excluding H.S.T.) Dillon Consulting Limited - S618,915 (excluding H.S.T.)

FINANCE AND CORPORATE SERVICES DEPARTMENT REPORT ON THE SOURCES OF FINANCINO; Finance and Corporate Services confirms tnat the cost of this project can De accommodated with n the financing available for it in the Capita. Woms BLdget and that, suDject to tne adoption of the recommendations of the General Manager of Environmental & Engineering Servlces & City Engmer, the detailed so~rce of financing for this project is'

Approved Financing Revised Committed This Balance for ESTIMATED EXPENDITURES Budget Adjustment Budget to Date Submission Future Work

Engineering Construction Relocate Utilities City Related Expenses

$2,050,000 12,600,000

150,000 50,000

$2,05O,M)O $1,299,524 $629,808 $120,668 12,600,000 10,161,662 2,438,338

150,000 10,937 139,063 50,000 6,967 43,033

NET ESTIMATED EXPENDITURES

SOURCE OF FINANCING.

Debenture Quota 2) $4,446,400 (5111,800) $4,334,600 $364,604 $2,906,587 $983.409 Drawdown from City Services. Roads 9,403,600 (246,757) 9,156,843 805,015 0,594,135 1,757,693

Reserve Fund (Development Charges 3) Other Contributions - CPR 1&4) 1,000,000 358,557 1,358,557 147,809 1,210,748 0

TOTAL FINANCING

CPR Financial Note: Contribution Construction Engineering Total

1) Contract Price $1,335,060 $9,985,910 $618.915 $10,604,825 Add: HST@13% 173.558 1,298,168 80.459 1,378,627 Total Contract Price Including Taxes 1,508,618 11,204,078 699,374 11,903,452 Less: HST Rebate 150,061 1,122,418 69,566 1,191,982 Net Contract Price $1,358,557 $10,161,662 $629.808 $10,791,470

NOTE TO CITY CLERK

obligation limit for the Municipality of Municipal Affairs in accordance with the provisions of Ontario Regulation 403/02 made under the Municipal Act, and accordingly the City Clerk is hereby requested to prepare and introduce the necessary authorizing by-law.

An authorizing by-law should be drafted to secure debenture financing for Project TS1349 - Samia Road Widening CPR Bridge Replacement for the net amount to be debentured of $4,334,600,

completed in 2009.

order of $1,335,060 plus HST.

2) Administration hereby certifies that the estimated amounts payable in respect of this project does not exceed the annual financial debt and

3) Development Charges have been utilized in accordance with the underlying legislation and the Development Charges Background Studies

4) The proposed 2011Capital Budget assumed a contribution of $ lM From CPR. The final value is based on actual cost and is estimated to be in the

5) Anticipated additional annual operating costs to the Environmental and Engineering Services budget in 2012 and subsequent years associated with the approval of this project is $8.808.

JG kJ& Alan Dunbar

Manager of Financial Planning & Policy

Agenda Item # Page # mm Appendix “B”

THIS AGREEMENT effective as of the TWO THOUSAND AND ELEVEN

day of

BETWEEN:

CANADIAN PACIFIC RAILWAY COMPANY (hereinafter called the “Railway”)

- and - THE CORPORATION OF THE CITY OF LONDON

in the Province of Ontario (hereinafter called the “Road Authority”)

WHEREAS Order No. 136, of the Board of Railway Commissioners for Canada, dated August 16. 1904, authorized the Railway to construct the original grade separation to carry Sarnia Road across and over the Railway at Mileage 3.00, Windsor Subdivision;

AND WHEREAS it is the Road Authority‘s intent to replace the existing grade separation with a new structure (hereinafter the “new grade separation”) to carry Sarnia Road across and over the Railway at Mileage 3.00, Windsor Subdivision, in the City of London, in the Province of Ontario, as shown on Sheet No. 1, dated January, 201 1 (hereinafter the Plan) attached to and forming part of this agreement;

NOW THEREFORE THIS AGREEMENT WITNESSES THAT, in consideration of the mutual covenants and agreements herein and subject to the terms and conditions set out in this agreement, the parties agree as follows:

RESPONSIBILITIES

I . The Road Authority and the Railway will carry out the work as shown on the Plan in accordance with Railway requirements respecting safe railway operations.

LIABILITY

2. Prior to commencement of construction the Road Authority or any agent acting on its behalf will comply with the Railway‘s insurance requirements as stipulated in Appendix 1 attached hereto.

Agenda Item # Page # pq-iiq

RAILWAY SAFETY ACT

3. The parties are required to fulfill their respective obligations under the Railway Safetv Act. For the purposes of the Railwav Safetv Act, the Road Authority is considered to be the "proponent".

CONSTRUCTION COST

4.1 The actual costs of constructing the basic grade separation shall be apportioned between the Road Authority and the Railway in accordance with

. the apportionment outlined in the Estimate of Shareable Costs, dated December 23,2010, in Appendix 2 attached hereto.

December 23,2010, in Appendix 2 attached hereto are estimates and shall be finalized when construction is completed.

4.3 The Road Authority and the Railway agree to notitj, the other party as soon as it is known that there will be a change in the scope of the work defined by the Estimate of Shareable Costs that will affect the other patty's share of the final costs of the basic grade separation.

indirect costs, including those associated with a temporary railway by-pass and any railway traffic diversion, incurred by the Raihvay in association with the grade separation and undertaken by the Railway or its designated agents.

4.2 The costs as detailed in the Estimate of Shareable Costs, dated

4.4 The Road Authority agrees to reimburse the Railway for all direct and

LIQUIDATED DAMAGES

5. Notwithstanding any provision of the Agreement, the Road Authority shall be responsible to pay liquidated damages to the Railway as detailed in Appendix 3 attached hereto.

MAINTENANCE COST

6.1 The cost of maintainina the substructure and suoerstructure of the arade separation shall be Bpp&tioned as follows: RailGy 82.61%, Road Aithority 17.39%.

6.2 The cost of maintaining the highway approaches, the retaining walls, the road surface, the sidewalks and the lighting on the grade separation shall be the responsibility of the Road Authority.

Agenda Item # Page #

plbl DESIGN AND CONSTRUCTION

7.1 The Road Authority shall be responsible for the design and construction of the grade separation. The Road Authority will ensure that detailed plans for the grade separation, any subsequent revisions and construction methodologies, are submitted to and approved by the Railway, as necessary, prior to the commencement of construction

7.2 The Road Authority shall provide the Railway with "As Constructed" plans of the grade separation in AutoCAD format on CD-ROM and one hard copy 11" X 17" reduced size set upon completion of construction.

FENCING AND DRAINAGE

8. The Road Authority shall maintain all fencing and drainage systems required as a result of the grade separation, at its cost.

SITE CLEANUP

9. Upon completion of the project the Road Authority agrees to leave the Railway's land in a clean and tidy condition, free of any environmental contamination resulting from or occurring during construction. Any required remedial actiins will be at the Road Authority's cost.

ACCOUNTS

10. The Railway shall prepare all accounts using rates as stipulated in the latest Guide to Railway Charges for Crossing Maintenance and Construction as issued by the Canadian Transportation Agency. In the event that the Canadian Transportation Agency should discontinue publishing same, the accounts shall be prepared in accordance with standard rates adopted by the railway industry in Canada, or in their absence, in accordance with standard rates adopted by the Railway. If there should be no standard rates in effect for work done by the Railway, the accounts shall be based on actual costs plus allowances for the Railway's overhead.

FUTURE RECONSTRUCTION

11. If at any time during the continuance of this agreement either party wishes to widen, relocate, replace, make more narrow or otherwise upgrade (the "reconstruction") the grade separation, the terms associated with the reconstruction will be agreed to by the parties by means of a written agreement between them.

Agenda Item # Page # m\151 JURISDICTION

12. This agreement shall be governed by and construed in accordance with the laws of the Province of Ontario, and all applicable federal laws and regulations.

ASSIGNMENT

13. This agreement is not assignable without the prior written consent of both parties which consent will not be unreasonably withheld. Notwithstanding the foregoing:

(a) the Railway may assign its interest under this agreement to another railway, without the consent of the Road Authority, in the event of a transfer of the rail line for continued rail operation, provided that the proposed assignee covenants in writing with the Road Authority to be bound by this agreement and to fulfill all of the obligations of the Railway hereunder from and after the effective date of the assignment: and

agreement to another public road authority, without the consent of the Railway, in the event of such public road authority assuming control of and responsibility for the highway at the location of the crossing, provided that the proposed assignee covenants in writing with the Railway to be bound by this agreement and to fulfill all of the obligations of the Road Authority hereunder from and after the effective date of the assignment.

(b) the Road Authority may assign its interest under this

TERM

14. This agreement shall become effective on the date appearing on page 1 of this agreement and shall continue until:

(a) the Railway discontinues its rail operations at the location of the crossing, unless the Railway chooses, according to its sole discretion, to leave its tracks in place notwithstanding the discontinuance, in which case the agreement shall not terminate until the Railway has permanently removed its tracks at the crossing; or

crossing: or (b) the Road Authority closes the Highway at the location of the

Agenda Item # Page # mml (c) the parties have mutually consented to terminate the

agreement."

TERMINATION

15. Upon termination of this agreement, unless terminated by a crossing relocation or reconstruction, the terms of which are to be set out in a subsequent agreement, the Road Authority shall be responsible for all future costs associated with the existence of the crossing, including the cost of maintaining the crossing or dismantling the crossing and restoring the Railway and Road Authority property to its original or mutually agreed upon condition.

RESIDUAL OBLIGATIONS

16. Notwithstanding the termination of this agreement, unless terminated by a crossing relocation or reconstruction, the obligations of the Road Authority as to the Termination clause of this agreement shall survive any such termination and shall remain in force until discharged.

CANADIAN TRANSPORTATION AGENCY

17. Upon execution, the Railway shall file this agreement with the Canadian Transportation Agency.

DEFAULT

18. If either party fails at any time to fulfill its obligations provided in the present agreement, the other party, at its option, may upon reasonable notice, undertake the necessary measures to ensure safety, at the risk and expense of the defaulting party.

RE PREAMBLE

19. The preambla to this agreement forms an integral part of the agreement.

Agenda Item # Page #

IN THE WITNESS WHEREOF, the parties have caused the Agreement to be executed by their respective representatives hereunto duly authorized, as they declare, as of the date first above written.

CANADIAN PACIFIC RAILWAY COMPANY

Signature and Title

Witness: Signature and Title

Date

THE CORPORATION OF THE CITY OF LONDON

Signature and Title

Witness: Signature and Title

Date

Agenda Item # Page # plm APPENDIX 1

CANADIAN PAC1 CIC RAILWAY

INSURANCE REQUIREMENTS FOR ROAD AUTHORITIES FOR WORKS PERFORMED ON AND/OR IN PROXIMITY TO THE RAILWAY OR WITHIN RAILWAY RIGHT OF WAY

During the term of the construction or re-construction of any works on and/or in proximity to the railway or within the railway right-of-way and before any work is started, the Road Authority and/or its Agents, at its sole cost and expense, shall effect and maintain with insurance companies, satisfactory to the Canadian Pacific Railway Company (CPR), the following liability insurances:

Comprehensive Liability Policy

A Comprehensive Liability Policy naming as Insureds the Road Authority, its Consultants and Contractors and CPR, including any of their Employees, Servants, Agents or Consultants, agreeing to pay on behalf of the Insureds all sums which the Insureds shall become obligated to pay by reason of the liability imposed by law upon the insureds for damages, including damages for care and loss of services, arising out of or in connection with the project, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person or persons, or damage to, or destruction of property including loss of use thereof, caused by accident and occurring during the policy period, with limits of not less than:

a) for bodily injury $2,000,000 per person and $5,000,000 per accident or occurrence and for property damage $5,000,000 per accident or occurrence

-or-

b) for bodily injury and property damage $5,000,000 inclusive in any one accident or occurrence.

Agenda Item # Page # mb[ The policy shall contain the following clause or one to like affect:

"Cross Liability - This policy shall insure each person, Snn or Corporation insured hereunder in the same manner and to the same extent as if a separate policy had been issued to each, but the inclusion herein of more than one insured shall not operate to increase the limits of the Insurance Company's Liability."

The policy shall be written so as to provide coverage for blasting and other special hazards, where such hazards will be incidental to the works or project and shall include coverage for the clean-up of pollutants or the actual, alleged or threatened discharge, dispersal, release or escape of pollutants as a result of a collision, overturning of any vehicle.

The Road Authority's Contractor shall ensure that its subcontractors, if any, maintain substantially the same insurance as is required of the Contractor under this Agreement.

Non-Owned Automobile Liability

A Non-Owned Automobile Liability Policy providing substantial limits of insurance against the risks of Bodily Injury and Property Damage.

Automobile Third Party Llablllty Policy

An Automobile Third Party Liability Policy providing substantial Limits of insurance against the risks of Bodily Injury and Property Damage.

Railway Operations

Should the CPR be required to carry out any work or render any services incidental to the works or project, then the Road Authority's and/or it's Contractor's Comprehensive Liability Policy shall be extended by endorsement in the following form or one of like effect

Agenda Item # Page # p?qiil

‘It is hereby understwd and agreed that the coverage Afforded the Canadian Pacific Railway Company under this policy shall apply to any legal liability arising from work performed or services rendered by the Canadian Pacific Railway Company, incidental to the works or project, including temporsly support for or diversion or relocation of the railway.“

or a separate policy shall be provided to cover CPRs operations incidental to the works or project.

Such policies shall not be terminated, canceled or materially altered unless written notice of such termination, cancellation or material change is given by the insurers to CPR at least thirty (30) days prior to the effective date thereof.

All policies of insurance stipulated in this Article will be with insurers acceptable to CPR and in a form satisfactory to CPR, and the Road Authority and/or its Agents will see that a copy of all policies or certificates of insurance are delivered to CPR, at the following address, prior to the date that the Road Authority andlor its Agents commences operations and prior to any insurance renewal thereof:

Manager, Risk Management Canadian Pacific Railway Company Room 1100, 401 - 9th Ave. SW Calgary. AB., T2P 424

Mississauga, November 16,2006

Agenda Item # Page # mbI - ~ _ _ _ _

APPENllx2 ESIMATEOF S#AE#BLE C M S

December 23,201 0 CRY OF LOEWN I u)(IMLN PAUAC RlllwIY I TOTAL

85% I 15% 1 100% PFIRTA- ROADWORKS 11,456,319.68 $256.997.63 81,713.31 7.50

PPRT 9. STORM SEWERS N D APPURTENANCES

PARTC- WATERMAINS

PARTD-TRAFFlCBIOFUL8AW IUUMlNATlON

PPRT E - STRUCTURAL

i PARTF- MISCEWNEOUSWD PRWISIONAL

SUB.TOTAL. TENDER PRICE

10% COMINGENCYALLOWWCE

SUETOTAL .CONTRACT PRlCE

ENGINEERING COSTS 'ENYIRONMEMM AGBESSMENl 'SURVEY *DESIGNFEES *CONSTRUCTION ADMINISTRATION FEES * CPR ENQINEERINQ FEE8 +RALWAYFLMOINO

SIBTOTAL. M- COWS

SUBTOTAL. PROJECT PRICE

1SyLMT.

TOTAL PR04BX PWE

I

$41 n.550.00

$524,511.60

172,122.50

$5,279,331 .42

1235,316.25

$7,977,219.54

1797,721.95

~774,941.4s

$162,019.79 $15.214.19

1576.787.06 $44i,en2.zg

818,674.88 $77,642.40

11,29326oSD

~io ,m,za2.08

s1.mSan

6 1 1 , 3 n , ~

~72,450.00 $4~3,noo.nn

192,572.50 1617.150.00

112,127.50 $84.850.00

$931,470.25 16,209,801.86

141,526.75 1276,815.00

$1~07,744.62 &94,964.10

1140,774.46 (938,496.42

$1,548,519.09 S14323cBo58

$28,602.32 1190,682.10 $2.695.44 $17,969.63

$101,185.95 1679,573.01 178,494.52 $523,296.81 S13.701.60 819,617.50 si3.7oi.m ~ 1 . 3 4 4 . 0 0

$228222.46 Sl,52t,48S.O5

~ I , ~ E , ~ I . ~ s I I I .~ ,B*ZB~

t23497RIO 11,5S9,a42S7

$ ~ 7 , 7 1 7 . S $13#4,78630

Agenda Item # Page # mm APPENDIX 3

LIQUIDATED DAMAGES

It is agreed by the parties to the Agreement that in the case that all the work called for under each of the track closures is not finished or completed within the allotted track block specified, a loss or damage will be sustained by the Railway. Since it is and will be impracticable and extremely difficult to ascertain and determine the actual loss or damage which the Railway will suffer in the event of and by reason of such delay the parties hereto agree that the Road Authority will pay to the Railway the following:

1) For Major Track Closures of 3 hours or more duration:

a) The sum of $18,000.00 per hour; and $4,500.00 for every 15 minutes or part thereof, as liquidated damages for overrunning any major track Closure. up to a maximum of 2 hours of overrun; and

b) The sum of $24,000.00 per hour or part thereof, for any overrun beyond the first 2 hours overrun.

2) For Minor Track Closures:

a) The sum of $1,000.00 as liquidated damages for overrunning the minor track closure and;

b) The sum of $3,000.00 per each 15 minute or part thereof overrun of the minor track closure, up to a maximum $12,000 for 1 hour overrun and;

c) For overruns beyond 1 hour, liquidated damages as per major track closures above will apply.