HomeMy WebLinkAboutINS-16-044 LTR Budget Update Gas Pipeline Replacement
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: May 2, 2016
SUBMITTED BY: Wally Malcolm, Director of Utilities,519-741-2600 x4538
PREPARED BY: Sylvie Eastman, Utilities Engineer, 519-741-2600 x4178
WARD(S) INVOLVED: All Wards
DATE OF REPORT: April 13, 2016
REPORT NO.: INS- 16-044
SUBJECT: LRT Budget Update Gas Pipeline Replacement
___________________________________________________________________________
RECOMMENDATION:
That the LRT Construction capital budget be increased by $2,299,958 ($1,416,014
City, $883,944 Region); and further
That funding of $1,416,014
Replacement Gas Mains capital account to the LRT Construction capital account.
BACKGROUND:
Gas Pipelines in conflict with the Light Rail Transit (LRT) are being replaced, in new
locations within the road right-of-way, on various streets throughout the City.
REPORT:
Design-build projects are, by their nature, inherently higher risk than conventionally
managed construction projects, and often present unusual scheduling challenges. The
scope, schedule, and budget of the LRT project has substantially changed over the
course of the project as Grandlinq completes their design, identifies utility conflicts, and
approves a route for the utility relocations. Coordination with Grandlinq and other utility
contractors, who are working in the same area simultaneously, has resulted in delays
and cost increases that are not foreseeable until construction is underway.
On October 19, 2015, a budget update was presented to Council. At that time, costs
were not available for four projects scheduled to begin in 2016: Ottawa @ Mill railway
crossing, Courtland @ Hydro One high pressure gas main, Siebert @ Courtland service
replacement, and Wilson @ Hydro One hydro transmission crossing. Costs for these
projects have now been included.
On January 25, 2016, Council approved winter construction work for the Ottawa gas
main abandonment, as requested by Grandlinq. These costs are also reflected in the
updated budget.
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Construction has progressed, and the budget has been updated to reflect actual costs
for projects substantially completed since October 2015: Ottawa (Charles-Mill), King @
Wellington, Charles @ Water, and Duke (Water-Ontario).
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
Gas Pipelines replacement related to the LRT has been an ongoing project
Capital Budget since 2013.During the 2016 Capital Budget, funds were added to the
LRT budget based on issue paper CAP06 Gas Pipeline Replacement for Light Rail
Transit (LRT) onpage C-188. In addition to the funds that were added, the issue paper
also noted:
There are still four other LRT projects to be completed in 2016/2017 that are not
included in the figures above as the design and contractor unit prices are not yet
available. Any funding request for these projects will come back to council
through a separate report or the 2017 Budget process.
The updated pricing is shown in the table below:
Region
ProjectCity ShareTotal Budget
Share
Ottawa @ Mill $ 164,158.00 $147,916.00 $ 312,074.00
Courtland @ Hydro One $ 397,467.00 $324,324.00 $ 721,791.00
Siebert @ Courtland $ 23,277.00 $ 16,456.00 $ 39,733.00
Wilson @ Hydro One $ 152,917.00 $103,504.00 $ 256,421.00
Adjustment for Actual Costs
$ 678,195.21 $291,743.79 $ 969,939.00
Work Completed since October 2015
Total $ 1,416,014.21 $883,943.79 $2,299,958.00
None of these costs are currently included in the approved budget.
acement Gas
Mains capital account, which has a balance of $5,657,249 at the end of 2015.
Completion of the LRT project has been a priority for staff, causing other gas pipeline
replacements (not related to the LRT) to be delayed. Using the existing balance for
Replacement Gas Mains means there will be no rate impact to gas customers.
COMMUNITY ENGAGEMENT:
INFORM
advance of the council / committee meeting.
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PREVIOUS CONSIDERATION OF THIS MATTER:
On October 19, 2015, a budget update was presented to Council. On January 25,
2016, Council approved winter construction work for gas main abandonment on Ottawa
(Charles-Mill).
ACKNOWLEDGED BY:
Cynthia Fletcher, Executive Director, Infrastructure Services
Department
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