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Home My WebLink AboutINS-14-048 - Margaret Ave Bridge - Funding & 2014 Road Resurfacing Program Staff Rport I r rc'.�► t .R Infrastructure Services Department wmkitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: April 28, 2014 SUBMITTED BY: Barbara Robinson, Director, Engineering Services, (519) 741-2200 x7410 PREPARED BY: Steve Allen, Manager, Engineering Design &Approvals, (519) 741-2200 x7584 WARD(S) INVOLVED: Various DATE OF REPORT: April 12, 2014 REPORT NO.: INS 14-048 SUBJECT: Margaret Avenue Bridge Funding and 2014 Road Resurfacing Program RECOMMENDATION: That the balance of the Federal Gas-Tax Reserve funding of $596,572 be allocated to complete additional pavement rehabilitation work under the annual Road Resurfacing Program; and further That the existing purchase order for the annual Road Resurfacing Program (T14-002) be extended by $596,572 to enable completion of this work in 2014. BACKGROUND: Bridge work is funded from Federal Gas Tax funds. Due to the immediate need to replace the Margaret Avenue bridge, existing projects that have a federal gas tax component have been reduced, deferred or cancelled in order to reallocate this funding for the bridge. A budget issue paper was prepared and submitted to Council as part of the 2014 capital budget package on this matter. At the January 30, 2014 meeting of the Finance and Corporate Services Committee the Committee considered Capital Issue Paper BD31- Margaret Avenue Bridge Replacement (Table 1). Staff responded to questions advising that in order to fund the $6.3M required for the Margaret Avenue Bridge replacement, certain projects such as road resurfacing were cancelled or deferred. 5 - 1 A motion was brought forward to confirm the budgetary allocation for the replacement of the Margaret Avenue Bridge and direct staff to prepare a report identifying the sources of that funding. It was resolved: "That staff be directed to report back with more information on the allocation of funding sources for the Margaret Avenue Bridge, outlined in Issue Paper BD31 (Margaret Avenue Bridge Replacement- Funding Sources Capital)." At the March 3, 2014 meeting of Council, questions were also raised with respect to the status of road resurfacing that would be undertaken in 2014, as it was previously indicated that the re- surfacing budget was needed to be redirected to assist with financing the Margaret Avenue Bridge Reconstruction project. Staff agreed to provide a report on road resurfacing, which could include possible alternatives to enable some resurfacing to take place in 2014. REPORT: Funding for the Margaret Avenue Bridge is detailed in the Budget Issue Paper shown in Table 1. TABLE 1 CITY OF KITCHENER 2014 BUDGET ISSUE PAPER BACKGROUND: During Capital Budget Review on November 21, 2013, staff was asked to provide the funding sources for the Margaret Avenue Bridge project; totaling$6,268,000(1) RATIONALE/ANALYSIS: The replacement of the Margaret Avenue bridge was unplanned, but became an immediate need due to the condition of the bridge. In order to fund the bridge replacement, other project budgets have been reduced, deferred or cancelled as shown in the table below. As well, funding has been increased from Capital out of Current and the Gas Utility to complete this project. FINANCIAL IMPLICATIONS: Funding Sources for the Margaret Avenue Bridge Replacement ($000) 2013 (existing Source balances) 2014 2015 2016 Road Resurfacing Program (Gas tax) 1,233 308 New Sidewalks Local Streets (Gas tax) 164 Laneway Rehabilitation (Gas tax) 1 1 204 5 - 2 AIRP projects reallocation (Gas tax) 216 620 640 Capital out of Current 1,200 Gas Utility(for gas main replacement) 300 Highland Road (Gas tax) 560 Hayward Bridge (Gas tax) 24 Slurry Seal Program (Gas tax) 50 Operations Sidewalk Repair (Gas tax) 350 Balance in Fed Gas Reserve (Gas tax) 399 TOTALS 1,383 3,317 928 640 6,268 RECOMMENDATION: For information only. To be read in conjunction with Issue Paper Cap 05— Margaret Avenue Bridge Replacement. (1) Corrected total on original Budget Issue Paper Table 1 shows that the approved reallocation of gas tax funding fully funds the anticipated costs (currently class C estimate) for the Margaret Avenue Bridge replacement. Effect on Resurfacing Program The annual resurfacing program is a program for the rehabilitation of asphalt pavement surfaces throughout the City. The program also completes the final layer of asphalt for road reconstructions completed in previous years. In order to fund the Margaret Avenue Bridge replacement, $1,233,000 of funding was re- directed from the program to the bridge. There is a scaled back Road Resurfacing Program occurring in 2014 which is made up of the following; • opening balance of approximately $46,000 from the 2013 program, • surface asphalt on previous road reconstructions (funded by project accounts) • paving work funded by other departments (KOF, cemeteries) The 2014 tender was approved by Council for award on March 31, 2014. The total value of work being completed in 2014 is approximately $1,800,000. By comparison, the 2013 program was $2,945,915. In order to fund the Margaret Avenue bridge, an additional $308,000 has been transferred from the 2015 resurfacing program. After this reduction the 2015 program is anticipated to be approximately $2,909,000. 5 - 3 Federal Gas-Tax Reserve The most recent projection as of April 8, 2014 indicates a balance in the Federal Gas-Tax Reserve account of approximately $596,572. The balance results from closeouts from completed projects and favorable tender pricing on tenders that have recently closed. It is proposed that this funding be used to complete additional road surfacing during the 2014 construction season. This can be accomplished by extending the recently awarded contract by approximately 33%. The road resurfacing contract was procured in accordance with the purchasing by-law and is competitively priced. The list of priority streets (based on assessment of pavement quality) to be considered with the additional funding is attached as an appendix to this report. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The expansion of the Road Resurfacing Program will contribute to Quality of Life for residents in the City, by investing in infrastructure that will support our future growth and improving the overall pavement quality within the City. FINANCIAL IMPLICATIONS: It is recommended that balance of$596,572 of Federal Gas Tax reserve funding be allocated to the 2014 Road Resurfacing program. This will deplete the fund and provide no flexibility within the Reserve to address other unanticipated costs. COMMUNITY ENGAGEMENT: Residents will be notified in advance of any roadwork and be given an opportunity to contact City staff prior to the work with any questions or concerns. Due to the short duration of the work and low impact to residents, no public meetings are planned. ACKNOWLEDGED BY: Pauline Houston, Deputy CAO 5 - 4 APPENDIX A INS 14-048 LIST OF CANDIDATE STREETS FOR THE ROAD RESURFACING PROGRAM The following streets are considered candidates for work under the expanded Road Resurfacing program. The additional funding proposed will not be sufficient to complete all these candidates. Staff will evaluate these candidates and allocate funding based on priority. Other priorities, not listed here, may be completed as well. STREET FROM TO APPALACHIAN CR KINGSWOOD DR KINGSWOOD DR ARCHER PL BURBANK RD SOUTH END BARCLAY AVE QUEENS BLVD GLEN RD BLUCHER ST MARGARET AV ST VINCENT ST BURGETZ AV CARSON DR NATCHEZ RD LORRAINE AV CONFEDERATION DR CARSON DR LORRAINE AV CRESS LN MANITOU DR end GENEVA CR SELKIRK DR SELKIRK DR GRACEFIELD CR KINGSWOOD DR KINGSWOOD DR GRAYSTONE AV FOREST HILL DR GREENBROOK DR GREENBROOK DR FISCHER-HALLMAN RD BIRCHCLIFF ST GREENBROOK DR WESTMOUNT RD FARMBROOK PL HARBER AVE SIEBERT AVE CLARK AVE HOFFMAN ST HOMER-WATSON HIGHLAND RD JAY CT SELKIRK DR END KINZIE AV LICHTY CR CARSON DR END LYNDHURST DR ARCHER PL KENWOOD DR MARGARET AVE CITY OF WATERLOO VICTORIA ST N MILL PARK DR OLD MILL RD MORNINGVIEW PL MONTCALM DR LORRAINE AV OTTAWA ST NATCHEZ RD VICTORIA ST N HALIFAX DR OLD CARRIAGE DR PIONEER DR HOMER-WATSON BLVD OLYMPIC DR HOFFMAN ST PATTAN DON AV PIONEER DR DOON VILLAGE RD UPPER CANADA DR PLEASANT AV STIRLING AV PERTH ST QUEENS BLVD WESTMOUNT RD BELMONT AV E RIVER RD OTTAWA ST N FAIRWAY RD ROSEDALE BRICK SHELDON ROSEMOUNT DR LOIS ST ELKINGTON ST RUSKVIEW RD GREENBROOK DR SWEETBRIAR DR SELKIRK CT SELKIRK DR END 5 - 5 SILVERSPRING CR QUEENS BLVD EAST END SOUTH DR QUEENS BLVD BELMONT AV E SOUTHDALE AV/ BORDEN PWY. HOFFMAN ST KEHL ST SPRINGBANK CR FOREST HILL DR FOREST HILL DR SPRINGDALE DR LANG CR end ST LEGER ST BREITHAUPT WELLINGTON ST UPLANDS DR BIRCHCLIFF ST FOREST HILL DR VERONICA DR BANCROFT BETTINA WILSON AVE FAIRWAY RD WEBSTER RD WOODHAVEN RD CONNAUGHT ST WILSON AV 5 - 6