HomeMy WebLinkAboutINS-14-091- New Dundee Road Sanitary Sewer Financial AgreementStaff Rgpor t
I r rc'.� ► t .R Infrastructure Services Department wmkitchener.ca
REPORT TO:
Committee of the Whole
DATE OF MEETING:
December 15, 2014
SUBMITTED BY:
Hans Gross, Director of Engineering
519 - 741 - 2000x7410
PREPARED BY:
Chris Spere, Manager, Engineering Construction
519- 741 - 2000x7412
WARD(S) INVOLVED:
Ward 4
DATE OF REPORT:
November 25, 2014
REPORT NO.:
INS -14 -091
SUBJECT:
New Dundee Road Sanitary Sewer Financial Agreement
RECOMMENDATION: That Council authorize the Mayor and Clerk to execute an
agreement with Monarch Corporation in respect of Monarch Corporation's
payment of the costs of the Engineering fees and the construction of the New
Dundee Sanitary Sewer.
BACKGROUND:
The City of Kitchener is responsible for operating and maintaining the sanitary sewer
network and pumping stations within its boundaries. The City's 2004 and 2009
Development Charge Background studies had identified the need to establish a new
sanitary sewage pumping station and forcemain to provide wastewater servicing for the
Doon South Area.
In 2009 an Environmental Assessment was completed to determine the preferred
sanitary servicing solution for the Doon South area of Kitchener. The preferred solution
included the construction of a new sanitary pumping station to be located on New
Dundee Road between Dodge Drive and Robert Ferrie Drive.
Being funded through a previously approved front ending agreement with Monarch
Corporation, construction of the new pumping station is scheduled to begin early in
2015. This will include construction of the sanitary forcemain and water service
connecting the station services to the existing infrastructure on Robert Ferrie Drive.
A part of the works that Monarch Corporation is responsible to construct as part of
Topper Woods south subdivision, 30T- 07202, and Dodge /Kelly subdivision 30T -07204
is the incoming gravity sanitary sewer located along New Dundee Road. The sewer is
needed to convey sanitary flows from the serviced areas to the new station.
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Since New Dundee Road is a Region of Waterloo Road, the Region will not permit
Monarch to construct the new gravity sanitary sewer. The Region requires that the work
be completed through a City managed contract. Therefore, a financial agreement
between the City and Monarch in which Monarch will provide to the City all necessary
funds to design and construct the sewers along New Dundee Road is required.
REPORT:
To facilitate the planned and approved growth in the Doon South area of Kitchener, a
new sanitary pumping station is needed. Finances are secured for this work and
construction is planned to begin early in 2015.
The new station requires a new sewer to be constructed to service the new
developments. This sewer is the responsibility of the developer, in this case Monarch
Corporation, to fund and construct in its entirety.
A portion of the new sewer is located along New Dundee Road, a Regional Road. For
this project, the Region of Waterloo requires, the City of Kitchener to manage the
contract with the project costs funded entirely by Monarch Corporation.
Project Costs:
The total preliminary estimated cost of the New Dundee Sanitary Sewer is $4.01 M. This
cost estimate includes the following items:
• Engineering fees ($ 135,000)
• Consultant fees for detailed design and contract administration;
• City staff costs;
• Consultant cost for geotechnical testing, hydrogeological investigation,
pump tests, material testing, etc.
• Construction cost Estimate ($3.88M)
• Includes all works associated with the construction of the new gravity
sewer;
• Excludes all development charges eligible construction, such as the new
forcemain and water service and associated restoration elements.
Funding in the amount of $4.01M will be provided to the City by Monarch following
approval of the tender.
If during construction any unforeseen things happen and sufficient funds are not
available in the project to cover this cost, the developer is responsible to provide the
funds required to complete the project. The City will provide the developer three (3)
weeks' notice to organise the funds.
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The Doon South Sewage Facility project is aligned with the City of Kitchener Strategic
Plan (refer to Strategic Plan document, Community Priorities — Development, sections 1
& 3). Further, this project is also one of the priority projects identified in the Kitchener
Growth Management Plan, as it provides service to lands identified as Priority B.
FINANCIAL IMPLICATIONS:
The project will be funded in its entirety by Monarch Corporation.
COMMUNITY ENGAGEMENT:
This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
Neighboring properties will receive notices prior to the start of construction outlining
contact information and a description of what to expect during construction. These
notices will be similar in nature to those generally distributed ahead of construction on
typical Kitchener road reconstructions.
This project underwent a Schedule "B" Class Environmental Study. Through this
process public consultation was undertaken in the form of Public Information Centres,
public notices and an advertised public review period of the final document.
CONCLUSION:
Monarch Corporation had ongoing discussions with City staff from 2012 until now.
Monarch is fully responsible for the costs associated with this project. As such, staff
recommends that the Linear Works Financial agreement for the New Dundee Sanitary
Sewer be approved.
ACKNOWLEDGED BY: Jim Witmer, Interim Deputy CAO,
Infrastructure Services Department
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