South End Rock Tunnel Update€¦ · zTender Review Greg Clausen zFinancial Cheryl Mahaffy...

South End Rock Tunnel UpdateSouth End Rock Tunnel Update

Council MeetingJune 16th, 2005

Introduction Alan Stephen

Background Greg Clausen

Technical Information Shawn Scott

Tender Review Greg Clausen

Financial Cheryl Mahaffy

Recommendation of Award of Tender Alan Stephen


CONTENTS:

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Dennis Consultants (A Division of R.V. Anderson Associates Ltd.)

Shawn Scott, P. Eng.Project Manager

Alex Sorensen, C.E.T.Design Manager

Armand Therrien, C.E.T.Project Director

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CITY STAFF

Cheryl MahaffyManager of Financial Planning and Policy

Al Sweetman, P. Eng.Water and Wastewater Engineer

Greg Clausen, P. Eng.City Engineer

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BACKGROUND:Summary of three earlier reports to Council

November 29, 2001April 16, 2003February 16, 2005

By late 1990’s, sanitary sewer system had exceeded it’s capacity

Class Environmental Assessment initiated in 2000Four Alternatives Considered:

1) Upgrade Existing System2) Expand Existing System3) Rock Tunnel Collector4) Do Nothing

November 29, 2001, Council approved the preferred Alternative No. 3, Rock Tunnel Collector, subject to securing funding

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Existing TunnelProposed Tunnel

Existing and Proposed Rock Tunnel SystemExisting and Proposed Rock Tunnel System

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2001 – 2003, $8.4 million Provincial funding secured

April 16, 2003, Council Approved Rock Tunnel Project with recommended funding formula

If the project had not been approved, all new development would have been immediately frozen and all existing approved projects retroactively rescinded where legally possible

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Nepahwin Lake

Regent Street

Paris

Stre

et

South End Tunnel

Three main components

Access ShaftsDrop Shafts

Tunnel Segments

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Nepahwin Lake

Regent Street

Paris

Stre

et

- Lo-Ellen Tunnel: 1.42km

Lo-Ellen Tunnel

Walford Tunnel

- Walford Tunnel: 0.51km

Tunnel Segments

Green Tunnel

- Green Tunnel: 2.39km

- Main Tunnel to Burwash: 1.97km

Main SE Tunnel

Existing Tunnel

- Paris Tunnel: 0.18km

Paris Tunnel

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Nepahwin Lake

Regent Street

Paris

Stre

et

Access Shafts/Drop Shafts

Lo-Ellen Tunnel

Walford Tunnel

Green Tunnel

Main SE Tunnel

Existing Tunnel

Paris Tunnel

Sewage Drop Shafts

Access Shafts

Burwash DS

Stewart DS

Service Road DS

Algonquin DS

Walford DS

Paris DS

Oriole DS

Access Road DS

Green DS

Three Access Shafts:

YALE SHAFT

Yale

BURWASH SHAFT

Burwash

GREEN SHAFT

GreenNine Drop Shafts:

Walford, Paris, Oriole, Stewart, Service, Burwash, Algonquin, Access, and Green.

Existing Shaft

Sustainable - sections of the existing tunnel are 40 plus years oldTotal length of the South End Tunnel - 6.5 kmAverage depth below ground - 25 meters (75 feet)Tunnel dimensions - 1.5m (5’) wide by 2.1m (7’) high ( minimum size based on current drill and blast tunneling technology)Access shafts dimensions- 3.0m (10’) by 3.5m (12’)Tunnel is lined with a concrete invert (improves flow and reduces build-up of solids in tunnel)Tunnel construction eliminates existing six sewage lift stations- Walford Lift Station- Paris Lift Station- Burwash Lift Station- Green Lift Station- Stewart Lift Station- Oriole Lift StationExcavated rock will be used to start construction of the Laurentian University Alternate Access RoadEstimated construction time: 3 Years

UNIQUE FEATURES:


TENDER PROCESS:

March 21, 2005, tenders called for the preferred Rock Tunnel Collector option

Tenders closed on May 3, 2005

Tenders only valid until July 2, 2005

2001 EA COST ESTIMATES WERE UPDATED TOINCLUDE:

1) 2005 Construction Prices for both Upgrade and Expansion Alternatives

2) Current Tender Results for Rock Tunnel AlternativeSlide 12 of 26


Slide 13 of 26

The 2005 Cost Estimates are shown on same format as original 2001 EA Report

The 2001 EA Report included Total Costs for entire service area for both 20 year and 60 year periods for all three Alternatives, as follows:

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ALTERNATIVES 20 YEAR TOTAL 60 YEAR TOTALUpgrading $46.3 M $81.4 MExpansion $45.4 M $77.0 MRock Tunnel $39.3 M $54.1 M

2005 COST ESTIMATES (EA Format)


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For comparative purposes, staff also created a combined option which included both Rock Tunnel and Conventional Construction methods

COMBINED Alternative 2005 Cost EstimateSection Tunnel Upgrade Expansion Combination Rock Tunnel and

Conventional Sewer System

Main Tunnel to Burwash $10.30 M $18.50 M $11.56 M Tunnel $14.70 M

Walford Road $ 3.55 M $ 1.35 M $ 1.44 M Conventional $ 2.43 M

Paris Street $ .83 M $ 1.60 M $ 1.60 M Tunnel $ 1.17 M

Lo Ellen $ 5.46 M $ 5.20 M $ 6.67 M Conventional $ 4.85 M

Green Avenue $ 8.90 M $ 7.14 M $ 8.08 M Conventional $ 7.13 M

Total Estimates $29.04 M $33.79 M $29.35 M Total Estimate $30.28 M (1)

Annual Operating and Maintenance Costs – Year 1

$ 10 K $ 255 K $ 340 K $ 210 K

Note (1) It should be noted that the project cannot be done piecemeal (i.e. Rock Tunnel for Main andParis Street and Conventional for balance) at the prices shown in the Rock Tunnel Option. Splitting the project between construction types increases the costs, as shown.


COST COMPARISON RESULTS:20 Year Total

7.1 Rock Tunnel Alternative $39.3 M5.2 Expansion Alternative $45.4 M

Combination Alternative $45.4 M5.1 Upgrade Alternative $46.3 M

The Rock Tunnel Collector Alternative is the least expensive alternative using both EA Costing Format and Combined Format

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Economic impact – both on existing businesses and new development

Public disruption during construction

Engineering fees for other alternatives

Additional EA study / fee studies for other alternatives

Re-tendering process and price increases

Future growth

Service life

OTHER FACTORS:Numerous other factors that make the Tunnel the preferred option:

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EXPLANATION OF PROJECT PRICE INCREASE:

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2005 Project Estimate $31.1 M2001 Project Estimate $22.7 MIncrease $ 8.4 M

Inflation (12.1%) (2001 – 2005) $2.53 MAdditional Engineering Design $0.50 MInsurance $1.00 MProperty Acquisition $0.50 MIncrease in Scope of Contract / Work $3.39 MAccess Road to University $0.34 MMiscellaneous $0.14 M

$ 8.4 M


ROCK TUNNEL TOTAL COSTS:$28,275,000 Recommended Contract

$ 3,200,000 Engineering

$ 500,000 Property Acquisition

$ 1,000,000 Construction Insurance (3 years)

$32,975,000

$ 1,900,000 Less GST Rebate

$31,075,000 Total Costs

FINANCIAL

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PRESENT FUNDING:$14,248,300 CGS funding committed to project

$ 965,000 CGS funding for Marcel / Bouchard & Oriole Lift Stations

$ 8,400,000 Committed funding from Province

$23,613,300 Available Funding

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FUNDING SHORTFALL:$31,075,000 Total Project Estimate

$23,613,300 Available Funding

$ 7,461,700 Funding Shortfall

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PROPOSED ADDITIONAL FUNDING:$ 340,000 Culvert work to be funded from 2006 Roads

Envelope

$ 106,700 Sewer and Water Payments Reserve FundActually collected for Green Lift Improvements

$4,000,000 External Borrowing

$1,000,000 2006 Wastewater Envelope



$7,461,700


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EXTERNAL FINANCING:$4,000,000 External Borrowing

Annual repayments @ 6.5 % over 20 years = $363,000

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POSSIBLE FUNDING SOURCES:

1) Fund totally from Capital Financing Reserve Fund- Wastewater (present balance $4.5 million)- Not recommended as reserve fund would be depleted

2) Implement a fee by-law under Section 391 of Municipal Act- Applied only to all new development benefiting from the project

continued


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POSSIBLE FUNDING SOURCES: (continued)

3) Undertake a Mini Development Charges Study to implement a development charge to partially fund this project.A development charge could be applied either city-wide or area specific.

4) Increase user fees (water / wastewater rates) to finance repayments

5) Possibly impose Local Improvement Charges

6) Federal Gas Tax ??


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South End Rock Tunnel UpdateSouth End Rock Tunnel UpdateRESOLUTION:THAT the tender for this Rock Tunnel Project be awarded to McNally Construction Inc. in the tendered amount of $28,274,558.78, which includes a reduction of $750,000 in the contingency allowance in the contract, being the lowest tender received meeting all terms and conditions of the tender, and,

THAT the total overall cost of the project, estimated to be $31.075 million, including engineering, property acquisition and construction insurance costs, and after the GST rebate, be funded as follows:

$14,248,300 Approved for this project$ 965,000 Approved for Marcel / Bouchard and Oriole Lift Stations Projects$ 8,400,000 Commitment from Province$23,613,300 Previously committed / approved funding

$ 340,000 Culvert work from the 2006 Roads Capital Envelope$ 106,700 From the Sewer and Water Payments Reserve Fund$ 4,000,000 External Borrowing$ 1,000,000 Additional contribution from the 2006 Waste Water Capital Envelope$ 1,000,000 From the 2007 Waste Water Capital Envelope$ 1,015,000 From the 2008 Waste Water Capital Envelope$31,075,000 and,

THAT staff be directed to come back with a report outlining financing options for the repayment of the loan in accordance with the report from the General Manager of Infrastructure and Emergency Services, dated June 8th, 2005.

South End Rock Tunnel Update€¦ · zTender Review Greg Clausen zFinancial Cheryl Mahaffy...

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