HomeMy WebLinkAboutINS-12-007 - Cost Sharing Agmt - Region of Waterloo - Rapid Transit~Tt~n>~~T~~
REPORT TO:
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Community & Infrastructure Services Committee
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
April 16, 2012
K. Grant Murphy, P. Eng, Director of Engineering Services
Greg McTaggart, Manager, Infrastructure Asset Planning
Ward 2, 3, 6, 9, 10
April 10, 2012
INS 12-007
City and Region Cost Sharing Agreement -Infrastructure
Relocation related to Region Rapid Transit Project
That the memorandum of understanding for municipal utility relocation cost sharing plan
related to the Region of Waterloo's light rapid transit program be endorsed, and
That staff prepare and enter into a cost sharing agreement with the Region of Waterloo
as outlined by the memorandum of understanding for municipal utility relocation cost
sharing plan related to the Region of Waterloo's light rapid transit program, to the
satisfaction of the City Solicitor.
BACKGROUND:
In 2004, the Region of Waterloo began work on a plan for rapid transit to support the objectives
of the Regional Growth Management Strategy. High-quality rapid transit will be a crucial
component in managing growth, facilitating intensification and reducing future "urban sprawl".
The initial concept was presented to Regional Council in 2005 and a detailed feasibility study
and environmental assessment process commenced. On June 15, 2011, Regional Council
approved light rail transit (LRT) as the preferred technology from Conestoga Mall in the City of
Waterloo to the Ainslie Street Terminal in the City of Cambridge, to be implemented in a staged
approach, as well as the location of the rapid transit route and stations (refer to Figure 1).
Stage 1 includes 19 km of LRT from Conestoga Mall to Fairview Park Mall and 17 km of
adapted bus rapid transit from Fairview Park Mall to the Ainslie Street Terminal. As a result of
technical consideration, consultation with City of Kitchener staff, and public input, regional staff
recommended the following light rail transit route alignment and stations:
• King Street at the Grand River Hospital and at the multi-modal transit hub;
• Duke Street at Young Street;
• Frederick Street at Duke Street;
• Charles Street at Gaukel Street, at Benton Street, at Cedar Street, at Borden Street, and
at Ottawa Street;
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• Fairview Park Mall;
• Ottawa Street at Mill Street.
On June 15, 2011, Region of Waterloo Council approved the funding for the Region's portion of
the Stage 1 capital costs, subject to annual budget deliberations. The capital cost of Stage 1 of
the rapid transit project is estimated to be $818 million, in 2014 dollars. The provincial and
federal governments have committed $300M and $265M respectively to the project, with the
balance, $253M, being funded by the Region. This cost estimate includes the results of a "value
engineering" exercise conducted by Regional staff in late 2010.
Figure 1 -Proposed Route for the Region of Waterloo Rapid Transit
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Staff Re~p~r~
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An important step in the completion of the rapid transit system is the relocation, reconstruction
and protection of municipally-owned infrastructure and privately-owned utilities within right-of
ways where rapid transit routes and stations are being proposed. The proposed design
alternative will involve light rail transit tracks placed on aconcrete-reinforced platform (refer to
figure 2). These tracks will generally be located over top of existing city sanitary sewer, water
main or storm sewer pipes and will hinder or eliminate access for future operation, maintenance
or replacement in a safe and efficient manner.
Figure 2 -Region of Waterloo Rapid Transit Utility Cross Section Route
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Utility relocations for the local area municipalities, will need to be completed in order to provide
a 2.5 metre horizontal clearance from utilities running parallel to the edge of the proposed rapid
transit rail bed and the outside edge of the relocated infrastructure. The relocation of
infrastructure could also represent a significant cost to the City of Kitchener, the approach to
managing this financial risk should be confirmed in the form of a formal agreement between the
City and the Region.
On May 26th 2011, in report CAO-11-009 for Kitchener Council's consideration, direction was
provided to staff to develop an agreement with the region on the moving or replacing of
underground infrastructure in order to accommodate the region's rapid transit system.
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REPORT:
Throughout 2011, engineering staff from the various local area municipalities and utilities,
affected by the proposed LRT route, met with regional staff to discuss the effect that the
upcoming rapid transit projects will have on the city's existing planned work and review other
infrastructure projects that may be required due to the proposed rapid transit routes.
The City of Kitchener and its utilities own and are responsible for maintaining underground
services within the road right of way on which the proposed LRT will be constructed. There is a
requirement to renew and in some cases relocate these services to the portion beneath the
vehicular roadway as the construction proceeds infrastructure relocation will be required to
ensure that the City can access the infrastructure to maintain and replace it in the future.
For example, by leaving a sewer pipe buried under the light rail transit system how will a transit
system interruption be handled, if that pipe has to be repaired. Significant costs and property
damage risks associated repairing the pipe will be bourne by the city. A review was completed
to determine how far a pipe should be moved away from the rail track to prevent this service
disruption and mitigate these risks.
The region and local area municipalities currently have utility relocation costs sharing
arrangements in place:
1. Utility Relocation within the Regional Road Right-of-Way, dated May 16, 1985; and
2. Cost Sharing Policy for Storm Drainage Systems (report E-97-004), dated October 22,
1997.
In reviewing these policies, it became apparent that that they were inadequate to take into
consideration such an intensive urban infrastructure program, like the region's rapid transit
initiative. Included in this consultation was a review of various technical, life cycle costing, and
funding policy concerns.
Kitchener staff have met with the region to reach consensus on a set of criteria to determine the
cost sharing of the utilities. There has been sufficient consultation with local area municipalities
in order to establish a set of criteria and associated potential financial impacts. A summary of
the proposed cost sharing criteria is included in table 1, and the detailed approach is included in
Memorandum of Understanding entitled Municipal Utility Relocation -Cost Sharing Plan (refer
to Appendix A).
The purpose of this memorandum is to outline the general principles for cost sharing on the
relocation of municipal utilities as it relates to for Stage 1 of the rapid transit project. The
Memorandum of Understanding was reviewed by staff from Region of Waterloo, the City of
Kitchener, the City of Waterloo and the City of Cambridge.
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Table 1 -Proposed Cost Sharing for Watermains, Sanitary and Stormwater Sewers
Age Years of
(from Construction Proposed Cost Sharing
2014
• The region pays 100% to relocate, rehabilitate, replace, and/or
reinforce infrastructure.
• Where funding is currently allocated in Kitchener's 10 year
capital forecast (2012 version), replacement is to be 100%
1-40 1974 to 2013 funded from these monies. The region would only fund the
additional costs related to relocation.
• Kitchener pays 100% for any upgrade in size and addition or
change of appurtenances.
• The region pays 50% to relocate, rehabilitate, replace, and/or
reinforce infrastructure.
• Where funding is currently allocated in Kitchener's 10 year
capital forecast (2012 version), replacement is to be 100%
41-80 1973 to 1934 funded from these monies. The region would only fund the
additional costs related to relocation.
• Kitchener pays 100% for any upgrade in size and addition or
change of appurtenances.
• Kitchener pays 100%.
Over 80 Prior to 1934 • Kitchener pays 100% for any upgrade in size and addition or
years change of appurtenances.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The Memorandum of Understanding is aligned with the City of Kitchener strategic plan; refer to
strategic plan document, community priorities -Development sections 1 & 3.
FINANCIAL IMPLICATIONS:
It is projected that between 2013 and 2016 approximately $18.7M will be required to relocate
sanitary, water or stormwater infrastructure owned by the City of Kitchener or Kitchener Utilities.
Based on the memorandum of understanding and associated cost-sharing criteria, $8.3M will be
funded by the region and $10.4M funded by the City. Reference can be made to table 2 for a
summary of projected infrastructure costs, available funding and proposed funding reallocations.
These costs estimates are deemed to be class "C" estimate and will be subject to a more
refined design review over the next 12 to 18 months by the region.
In the current 10 year capital forecast, Kitchener has $5.2M funding already allocated to replace
aging infrastructure on Duke Street (College to Queen) and King Street (Victoria to Union) and
these streets are on the proposed rapid transit route. This leaves approximately $5.2M of
funding that needs to be reallocated and reprioritized from other projects within the 10 year
capital forecast.
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Currently the region has scheduled the reconstruction of Weber Street from Borden Avenue to
Queen Street in 2017 and the reconstruction of Lancaster Street from Victoria Street to
Bridgeport Road in 2021, in the region's current transportation capital program. The City of
Kitchener has significant underground services that need to be replaced as part of these
reconstruction projects. In discussions with the region, these two (2) projects could be deferred
in the capital works program until 2022, in order to partially fund the relocation of underground
services that will be required as part of the LRT project (phase 1). The regional staff have
agreed to recommend to their council the deferral of these projects as part of the development
of the 2013 transportation capital program. A summary of these projects with their associated
funding in the city's capital budget forecast is included in Table 3.
It should also be noted, that the pavement condition on Weber Street from Borden Avenue to
Frederick Street is poor and will require pavement rehabilitation in the near term to ensure
serviceability until at least 2022. The region and the city are considering options to address this
situation in the near term.
Table 2 -City Share of Infrastructure Replacement in Rapid Transit Project
Age Criteria Cost Sharing Approximate City Cost Funding New funding
City % Total Cost (A x B) Allocated in required
(A) (g) 10 Year
Capital
Forecast
0-40 years 0% $7.1 M $O.OM 0 0
41-80 years 50% $2.4M $1.2M 0 $1.2M
>81 years 100% $9.2M $9.2M $5.2M $4.OM
Total = $18.7M $10.4M $5.2M $5.2M
Table 3 -Available City Funding for Infrastructure Replacement in Rapid Transit Project
Project # Project Year Available Funding
701202004 Duke Street (College to Queen) 2015-2017 $1.6M
800402022 King Street (Victoria to Union) 2014-2016 $3.6M
701202004 Lancaster (Bridge to Victoria)* 2016-2018 $5.5M
800402041 Weber (Borden to Queen)* 2014-2016 $3.8M
*Region of Waterloo to defer these projects to 2022 and City to reallocate funding to streets
on LRT Route.
The currently approved capital forecast for planned replacement of underground services does
not exactly match with the region's planned schedule. The region has agreed that these capital
costs will be front-ended until the period that city funding appears in its capital forecast. This will
not adversely affect the city's cash flow while enabling the relocation of infrastructure in a timely
manner.
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In summary, the funding requirements for infrastructure replacement as part of the rapid transit
projects, places no additional burden on Kitchener, nor adversely impacts other infrastructure
reconstruction priorities, and represents a reallocation of existing funding in the currently
approved capital forecast, and not new funding requests to council.
COMMUNITY ENGAGEMENT:
Not applicable.
CONCLUSION:
Staff from the city, utilities, and the region to determine the infrastructure that will need to be
relocated adjacent to or under the proposed rapid transit corridors.
A Memorandum of Understanding has been prepared between the City of Kitchener, City of
Waterloo and the Region of Waterloo which specifies the criteria and conditions for sharing
costs associated with these infrastructure relocations.
City staff recommends that a formal cost-sharing agreement be entered into with the Region of
Waterloo in accordance with the criteria and terms outlined in the attached memorandum of
understanding.
ACKNOWLEDGED BY: Pauline Houston, Deputy CAO
Infrastructure Services Department
Appendix A -Municipal Utility Relocation -Cost Sharing Plan
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Memorandum of Understanding
Municipal Utility Relocation -Region of Waterloo Light Rail Transit Project
Background
On June 15, 2011 Regional Council approved light rail transit ("LRT") as the preferred technology from
Conestoga Mall in the City of Waterloo to the Ainslie Street Terminal in the City of Cambridge. The approved
Stage 1 of the project will include LRT from Conestoga Mall in Waterloo to Fairview Park Mall in Kitchener and
is slated for construction in 2014 with completion in 2017. Stage 2 of the project is from Fairview Park Mall in
Kitchener to the Ainslie Street Terminal in Cambridge. Although the construction timing of Stage 2 is unknown,
the Environmental Process is slated to commence in 2014.
Construction of Stage 1 will have an impact on the existing municipal utilities which are currently located within
the proposed rapid transit corridors in Kitchener and Waterloo, while Stage 2 will have an impact on existing
municipal utilities which are currently located within the proposed rapid transit corridors in the south part of
Kitchener and in Cambridge. A map of the Stage 1 and Stage 2 corridors is attached hereto and marked as
Schedule "A".
Purpose of this Memorandum
The purpose of this memorandum is to outline the general principles for cost sharing for the accommodation or
relocation of municipal utilities as it relates to the LRT project.
Each of the City of Waterloo, the City of Kitchener, the City of Cambridge and the Region of Waterloo shall
collaborate with one another with respect to the required relocation of any municipal services that may be
impacted by the construction and operation of the LRT project. For the purposes of this Memorandum of
Understanding, "municipal services" shall mean underground sanitary sewers and piping, municipal water
distribution systems, storm sewers and any related infrastructure.
In signing this Memorandum of Understanding, it is the intent that staff at each municipality to present this
Memorandum of Understanding to their respective municipal councils for approval.
1.0 CURRENT PRACTICE
Table 1 below describes the current practice for sharing in the cost of relocating different municipal utilities
based upon the jurisdiction of the municipality and ownership of the affected infrastructure.
The current practice is based upon two Region of Waterloo policies subsequently adopted by resolution of
each area municipality. These policies are attached hereto as follows:
Schedule "B" -Utility Relocation within the Regional Road Right-of-Way, dated May 16, 1985; and
2. Schedule "C" -Cost Sharing Policy for Storm Drainage Systems (report E-97-004), dated October 22,
1997.
Document Number: 1127293
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Table 1: Current Cost Sharing Practice for Municipal Utility Relocations
Municipality Utility Owner Current Cost Sharing Practice
Distribution • Region pays 100% of the cost if it is the initiator
Kitchener Watermain Kitchener Utilities .Kitchener Utilities pays for any upgrades
Distribution • Region pays 100% of the cost if it is the initiator
~ Waterloo Watermain City of Waterloo .City of Waterloo pays for any upgrades
w
a
~ Distribution • Region pays 100% of the cost if it is the initiator
Cambridge Watermain City of Cambridge .City of Cambridge pays for any upgrades
Kitchener, ~ Region of Waterloo • Region pays 100% of the cost if it is the initiator
Waterloo, and Supply Watermain Water Services • Regional Water Services pay for any upgrades
Cambridge
• Region pays 100% of the cost if it is the initiator
Kitchener Sanitary City of Kitchener .City of Kitchener pays for any upgrades
~ • Region pays 100% of the cost if it is the initiator
z Waterloo Sanitary City of Waterloo .City of Waterloo pays for any upgrades
a
• Region pays 100% of the cost if it is the initiator
Cambridge Sanitary City of Cambridge .City of Cambridge pays for any upgrades
• Region pays with contributions from the City of
Region on Regional Kitchener (based on drainage reaching the road
Kitchener Storm Roads allowance from local storm sewer and local
roads)
Kitchener Storm Region on City of .Unknown
Kitchener Roads
~ • Region pays with contributions from the City of
~ Region on Regional Waterloo (based on drainage reaching the road
cn Waterloo Storm Roads allowance from local storm sewer and local
roads)
Waterloo Storm Region on City of .Unknown
Waterloo Roads
• Region pays with contributions from the City of
Region on Regional Cambridge (based on drainage reaching the road
Cambridge Storm Roads allowance from local storm sewer and local
roads)
Note:
If an existing Watermain is joint use between the Region and an Area Municipality, then the relocation/replacement costs are
apportioned equally between the Region and the Area Municipality.
Document Number: 1127293
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2.0 PROPOSED COST SHARING PRINCIPLES FOR LRT PROJECT
Recognizing that the rapid transit route is within existing corridors which have municipal infrastructure ranging
in age from 7 years (e.g. Victoria St.) to 122 years (e.g. King St.), consideration will first be given to assessing
whether the existing infrastructure has exhausted its safe/useful life and if it would need to be replaced without
rapid transit.
For the purposes of cost sharing of municipal utility relocation as between the Region of Waterloo and an
impacted area municipality, the following methodologies be used for the relocation, rehabilitation, replacement,
and/or reinforcement of existing buried watermains/water services, sanitary sewers/sanitary sewer laterals, and
storm sewers in relation to the construction of the LRT project:
2.'I WATERMAINS AND SANITARY SEWERS
• If the existing water and/or sanitary infrastructure does not need to be relocated but certain elements of the
existing infrastructure require modification to accommodate the LRT project then the Region of Waterloo
will be responsible for 100% of the costs. For example, this may include providing a casement pipe to
protect a watermain crossing or the installation of cathodic protection to protect from stray currents.
• If the existing water and/or sanitary infrastructure does not need to be relocated to accommodate the
construction and/or operation of the LRT project, but the area municipality wishes to replace the
infrastructure, at the time the area is excavated for the purpose of LRT construction, because of the age,
condition, suitability of the municipal service, etc. the area municipality will pay 100% of the cost.
• For joint use watermains, cost sharing on a 50/50 basis between Region of Waterloo and the area
municipality would apply.
• If the existing water and/or sanitary infrastructure needs to be relocated to accommodate the construction
and/or operation of the LRT project, the following table applies.
Table 2: Proposed Cost Sharing for Watermains and Sanitary Sewers
Age
from 2014 Years of
Construction Proposed Cost Sharing
• Region of Waterloo pays 100% to relocate, rehabilitate, replace, and/or
reinforce, in kind, except where monies are currently allocated in the
municipal 10 year program.
• Where monies are currently allocated, replacement is to be 100% funded
1-40 1974 to 2013 from these monies. Region of Waterloo would only fund the additional costs
related to relocation.
• Area Municipality pays 100% for any upgrade in size and addition or
change of appurtenances. 2
• Region of Waterloo shares 50% of the cost with the area municipality to
relocate, rehabilitate, replace, and/or reinforce, in kind, except where
monies are currently allocated in the municipal 10 year capital program. 2
• Where monies are currently allocated, replacement is to be 100% funded
41-80 1973 to 1934 from these monies. Region of Waterloo would only fund the additional costs
related to relocation.
• Area Municipality pays 100% for any upgrade in size and addition or
change of appurtenances. 2
Document Number: 1127293
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• Area Municipality pays 100%. 2
Over 80 Prior to 1934 • Area Municipality pays 100% for any upgrade in size and addition or
years change of appurtenances. z
Note
' Where an existing utility has been rehabilitated by means of trenchless methods such as pipe lining, CPP or pipe
bursting, and the Area Municipality confirms there are no concerns with the operation or function of the pipe, then the
effective date for the cost sharing found in Table 2 shall be determined in relation to the date of the rehabilitation and NOT
the original date of the pipe installation.
2 For joint use watermains between the Region and the Area Municipality, the Regional Water Services will share the cost
with the Area Municipality on a 50/50 basis. For example, where it is determined that a joint use watermain which was
constructed in 1969 needs to be relocated as a result of rapid transit project, the Region of Waterloo would pay 50% while
the Regional Water Services Division and the area municipality would pay 25% each. The cost sharing amounts will
include engineering, construction and administration costs.
2.2 STORM SEWERS
• If the existing storm sewer infrastructure, within a Regional road allowance, does not need to be relocated
to accommodate the construction and/or operation of rapid transit, but the Regional Transportation
Services Division wishes to replace the this infrastructure because of its age, condition, suitability etc. the
Regional Transportation Services Division pays 100% of the costs.
If the existing storm sewer infrastructure, within a Regional road allowance, does not need to be relocated
but certain elements of the existing infrastructure require modification to accommodate the LRT project
then the Rapid Transit Division pays 100% of the costs. For example, this may include placing additional
storm sewer laterals, catch basins, manholes, etc.
If the existing storm sewer infrastructure belonging to an area municipality needs to be relocated to
accommodate the construction and/or operation of the LRT project, the following table applies.
Table 3: Proposed Cost Sharing for Storm Sewers
Age
(from 2014) Years of
Construction Cost Sharing
• Region of Waterloo pays 100% to relocate, rehabilitate, replace, and/or
reinforce, in kind, except where monies are currently allocated in the
Regional 10 year capital program.
1-40 1974 to 2013 .Where monies are currently allocated, replacement is to be 100% funded
from these monies, the LRT project would only fund the additional costs
related to relocation.
• Rapid Transit Division shares 50% of the cost with the Regional
Transportation Services Division to relocate, rehabilitate, replace, and/or
reinforce, in kind, except where monies are currently allocated in the
Regional 10 year capital program.
41-80 1973 to 1934 • Where monies are currently allocated, replacement is to be 100% funded
from these monies. Rapid Transit would only fund the additional costs
related to relocation.
• Area municipality pays for the drainage area which drains to the Regional
road allowance by means of local storm sewers and local roads.
Document Number: 1127293
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• Regional Transportation Services Division pays 100% to relocate,
rehabilitate, replace, and/or reinforce, in kind.
Over 80 • Rapid Transit Division pays 100% for any changes required to
years Prior to 1934 accommodate rapid transit.
• Area municipality pays for the drainage area which drains to the Regional
road allowance by means of local storm sewers and local roads.
3.0 GENERAL TERMS AND CONDITIONS
1. All costs of relocation to be assumed by any party to this MOU shall be documented in a separate
agreement which shall be approved by both parties. It is the intent of the parties that such agreement
shall specifically reference the municipal service to be relocated, the estimated cost of its relocation
and the agreed upon cost apportionment.
2. The term of this MOU shall be effective commencing 1St day of June, 2012 and shall remain in effect
until the substantial completion of the construction of the LRT project (the "Term").
3. Each party shall designate one contact person as the person who shall receive information regarding
the implementation of the LRT projects as follows:
IN WITNESS WHEREOF the parties have affixed their respective corporate seals, attested by the hands of
their respective officers duly authorized in that behalf.
SIGNED, SEALED AND DELIVERED
THE REGIONAL MUNICIPALITY OF WATERLOO
Commissioner of Transportation and Environmental Services (or
Designate)
I have authority to bind the Corporation.
THE CORPORATION OF THE CITY OF WATERLOO
Per: __
Name
Title:
I have authority to bind the Corporation
THE CORPORATION OF THE CITY OF KITCHENER
Per: __
Name
Title:
I have authority to bind the Corporation
Document Number: 1127293
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