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HomeMy WebLinkAboutPublic Works - 1998-01-12PWTC\1998-01-12 PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JAN UARY 12, 1998 CITY OF KITCHENER The Public Works and Transportation Committee met this date under the Chairmanship of Councillor John Smola, with all members present. Councillor J. Ziegler was in attendance for part of the meeting. Others Present: Councillor T. Galloway, Ms. P. Houston and Messrs. S. Gyorffy, D. Snow, D. Quinn, D. Mansell, J. Gazzola, J. Shivas, T. Clancy and L.F. Parkhouse. This meeting of the Public Works and Transportation Committee commenced at 8:35 a.m. 1. CLASS ENVIRONMENTAL ASSESSMENT & ALIGNMENT LOCATION STUDY DOON VILLAGE ROAD The Committee considered a report in which it was noted that the Doon South Community is a large, mostly undeveloped area located in the southern part of the City. This area has been designated for urban development in the Regional Official Policies Plan, the City of Kitchener Municipal Plan and the 1997 Doon South Community Plan. The Village of Upper Doon with its cultural and heritage features is located in the Doon South Community. In February 1994, the Doon South-Brigadoon Transportation Network and Corridor Study was undertaken with a view to minimizing the traffic impacts on existing communities including the Village of Upper Doon. This study also recognized and developed criteria for scenic roads within this heritage community. In January 1997, Stanley Consulting Group Ltd., (formerly Paragon Engineering Limited), was selected to carry out a Class Environmental Assessment and Alignment Location Study regarding the realignment of Doon Village Road. A public open house was held in June 1997, at which time several issues were identified, however, no design recommendations were presented. A "do nothing" alternative, along with an "improve the existing roadways" alternative, were considered, along with four other possible alignment concepts. Each of these alternatives were reviewed and, as the result of an extensive evaluation, Alignment "C" was recommended. Alignment "C" was considered to be the best possible alignment to serve the future transportation needs of the Doon South Community while maximizing the opportunities to conserve and enhance the cultural and natural environment surrounding the Village of Upper Doon and the Strasburg Creek Watershed. This alternative was presented at an open house meeting held on November 26, 1997. The estimated cost of the preferred design is $2,476,200.00 and would include the following: · Doon Village Road would be realigned at Anvil Street, intersecting with Tilt Drive approximately 230 metres south of existing Doon Village Road; · Doon Village Road would be closed, with a cul-de-sac immediately east of Anvil Street, to direct traffic away from the Village of Upper Doon; · Doon Village Road, between Bechtel Drive and Anvil Street, would be reconstructed to urban design standards with improved intersection turning lanes at Bechtel Drive; · bicycle lanes and sidewalks are proposed to provide access to the community trail system, as well as the Village of Upper Doon and the Doon South Community; · a single span bridge is proposed at the Strasburg Creek Watercourse crossing for environmental preservation reasons; · the existing knoll on Tilt Drive is proposed to be retained in the ultimate condition, with Tilt Drive being closed to vehicular traffic south of the realigned Doon Village Road. When questioned by Councillor J. Haalboom, Mr. D. Mansell pointed out that a Location Study only has been completed at this time and, accordingly, no detailed models have been developed. PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JANUARY 12, 1998 - 2 - CITY OF KITCHENER 1. CLASS ENVIRONMENTAL ASSESSMENT & ALIGNMENT LOCATION STUDY DOON VILLAGE ROAD (CONT'D) Mr. Mansell also confirmed that the plan being recommended at this time would be good for a period of 5 years from the date it is approved by Council. If no action is taken during that 5 year period the entire matter would have to be revisited. In response to questioning, Councillor Haalboom was advised that no improvements to Tilt Drive are being recommended other than a slight regrading at the intersection of Tilt Drive and Daan Village Road to improve sight lines. It is not intended that Tilt Drive will be used to provide access to the Hallman-Aberdeen lands. Councillor Haalboom expressed concern about possible delays in the development of the Doon Village Road extension and was advised that monies have been included in the 1999 Capital Budget for this work and, subject to Council approval, this work will be completed. The Committee was advised that a Heritage Impact Assessment will be a condition of any plan of subdivision which includes a road which will have to cross Tilt Drive. Councillor J. Ziegler entered the meeting at this time. Councillor T. Galloway pointed out that the intersection of Doon Village Road and Tilt Drive is within a Heritage Conservation District. In this regard, he expressed concern that some improvements to the south may result in streets being developed to full engineering standards. In this regard, it was pointed out that only the section of the Daan Village Road diversion located within the Monarch lands will be developed with full services. One of the knolls on Tilt Drive will be removed temporarily to improve sight lines, however, this knoll will be replaced once Tilt Drive is closed. The Committee was advised that the alignment being recommended for the extension of Doon Village Road will make it possible to save the existing hedgerow, all of the major trees and bush areas in the area. Councillor T. Galloway referred to the recommendations contained in the report and it was agreed that the following changes would be incorporated: · Item #4 will be amended to read: "That Tilt Drive, south of the new Doon Village Road alignment, be ultimately restored to its original condition, closed to vehicle traffic, and retained solely as a recreation pathway."; · Item #7 will be amended to read as follows: "That the City of Kitchener determine the staging of construction of the preferred design based on the timing of construction of the Monarch Construction Ltd. subdivision section, the Development Charges By-law and the City's Capital Budget process."; · Item #11 will be amended to read as follows: "That the City of Kitchener, during design and construction, implement a landscape/tree planting plan, within the limits of the Daan Village Road alignment, to enhance the character of the roadway in relation to the natural beauty of the area.". On motion by Councillor J. Haalboom - it was resolved: "That the preferred design and location for Doon Village Road, from Bechtel Drive to Tilt Drive, as presented at the Public Open House held on November 26, 1997, be approved, and further, 1. CLASS ENVIRONMENTAL ASSESSMENT & ALIGNMENT LOCATION STUDY DOON PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JAN UARY 12, 1998 -3- CITY OF KITCHENER VILLAGE ROAD (CONT'D) That the Schedule 'C' Class Environmental Assessment Study report for this project, as amended, be filed with the City Clerk for the mandatory 30 day public review period." CLASS ENVIRONMENTAL ASSESSMENT & SANITARY SERVICING SCHEME - BRIDGEPORT NORTH & LEXINGTON EAST COMMUNITIES Mr. D. Mansell presented a report indicating that in August 1997, Stanley Consulting Group Ltd., (formerly Paragon Engineering Limited), was authorized to proceed with a Class Environmental Assessment regarding the sanitary sewage facility in the Bridgeport North Community. The purpose of this study was to identify and assess alternative methods of providing sanitary sewage servicing to existing and proposed land uses in the area. It was noted that the following servicing alternatives have been considered: · do nothing; · communal Class 6 sewage treatment systems; · individual Class 4 septic systems; · gravity sewers to the existing Bridgeport Sewage Pumping Station; · the provision of new sewage pumping facilities; · a combination of the above. The report, as presented, recommends the development of a north pumping station with trenchless construction taking place in the vicinity of Melitzer Creek and the conifer forest. It has been determined that this solution would have the least environmental impact on the area. The Committee was advised that the actual design details will be prepared as part of the subdivision process with the capital and operating costs being shared with the City of Waterloo on a population basis. When questioned by Councillor T. Galloway, Mr. D. Mansell advised that this project will be presented to the Environmental Committee for discussion at a future meeting. On motion by Councillor Jake Smola - it was resolved: "That the preferred sanitary servicing system for Bridgeport North and Lexington East Communities, as presented at a Public Open House held on November 25, 1997, be adopted, and further, That the Schedule 'B' Class Environmental Assessment Study report for this project be filed with the City Clerk for the mandatory 30 day public review period." ADAM KRULICKI Mayor C. Zehr introduced Mr. Adam Krulicki who is a student at Eastwood Collegiate. Mr. Krulicki won a contest at Eastwood and, as the winner, will be job shadowing Mayor Zehr on January 12, 1998. ASSISTANCE - EASTERN ONTARIO & QUEBEC Mayor Zehr advised the Committee that, over the past weekend, 3 trucks left this area with 35 generators which are going to provide assistance to the Leeds-Grenville area. 5. NATURAL GAS RATES PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JAN UARY 12, 1998 -4- CITY OF KITCHENER The Committee was advised that, as a result of an Ontario Energy Board Rate Hearing, the following adjustments have been approved, effective January 1, 1998, namely: · an increase in the cost of gas; · a decrease in the transportation costs of gas; · no change in the delivery costs of gas. It was noted that the net effect of these changes is a very slight decrease in the annual cost of natural gas to the residential consumer. It was further noted, however, that there will be a slight shrinkage in the gross margin for the Kitchener Gas Utility. It was noted that the shrinkage in the gross margin is created because the wholesale rates will remain the same while the retail rates are slightly decreased. The Committee was advised that the changes outlined at this time will have very little affect on industrial and commercial users. Ms. P. Houston advised the Committee that this rate change will be implemented very quickly and, with a new tax and utility system, future rate changes will also be implemented more quickly than has been the case in the past. When questioned by the Committee, Mr. J. Gazzola pointed out that, while the City has had no official policy in the past, Council has always tried to ensure that its customers were charged the same rate as was being charged by Union Gas. It was noted, however, that, with de-regulation, gas prices may vary greatly and the end cost to the consumer will depend on the broker involved. It is hoped that the City of Kitchener will be able to maintain its competitive prices and that all residents will continue to obtain their gas from the City of Kitchener. Councillor Jake Smola suggested that all City enterprises should have a policy which would establish pricing which would be comparable to the prices being charged by various competitors. In this regard, Mr. Gazzola suggested that the development of such a policy would have to be considered in detail and noted that the sale and distribution of gas will become a new and very competitive business. On motion by Councillor G. Lorentz - it was resolved: "That, effective January 1, 1998, the natural gas rates charged in the City of Kitchener be modified in accordance with the documentation presented to the Public Works and Transportation Committee on January 12, 1998." 6. NATURAL GAS UTILITY - BUSINESS TRANSITION - TRANSPORTATION ARRANGEMENTS By way of a video presentation, Mr. E. Kovacs provided the Committee with his comments regarding this report. It was noted that, in the past, the City of Kitchener has purchased all of its natural gas requirements from Union Gas. The de-regulation of the natural gas industry means that Union Gas will no longer be allowed to supply natural gas and this role will be moved to unregulated Companies. The role of Union Gas will be relegated to the distribution of natural gas within its franchise area. This means that the City of Kitchener will now have to obtain its own natural gas supplies and will be in direct competition with other gas brokers. In mid-1997, City Council endorsed a proposal whereby Kitchener Utilities would become responsible for securing gas for its customers from a source other than Union Gas. In order for this to become a reality it was felt that outside expertise must be retained. In this regard, E.C.N.G. Inc. was retained to undertake the following: · formulate and negotiate transportation agreements with Union Gas; 6. NATURAL GAS UTILITY - BUSINESS TRANSITION - TRANSPORTATION ARRANGEMENTS PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JAN UARY 12, 1998 -5- CITY OF KITCHENER (CONT'D) · purchase natural gas and manage its supply, transportation and storage; · prepare supporting contracts for transportation and delivery services with end use consumers; · prepare required marketing and customer communication programs to effect market penitration; · assist, as required, in preparing submissions to the Ontario Energy Board. Transportation arrangements must also be finalized so that the City's natural gas needs can be transported from Alberta to the City of Kitchener distribution system. The terms and conditions of such transportation contracts are a major issue. It was noted that discussions are ongoing and there are still some matters to be pursued with Union Gas. It was noted, however, that both supply and retail windows of opportunity are closing and, accordingly, it is important that contracts be finalized. Even though these contracts will be finalized, it is intended that staff will continue with their efforts to resolve the existing differences. By way of his video tape presentation, Mr. Kovacs advised the Committee that, since the report being considered was prepared, Union Gas has agreed to a contract term which will expire April 1, 2007, and also to roll over provisions. They have also agreed to meet further with City staff to resolve any other contractual difficulties. When questioned by the Committee, Mr. J. Shivas pointed out that, if the difficulties with Union Gas cannot be resolved, it may be necessary to attempt to have these differences reviewed by the Ontario Energy Board. When questioned by Councillor T. Galloway, Mr. D. Quinn advised that the City will start signing contracts with gas customers by March of this year. The Committee was advised that, as the de-regulation of the distribution of hydro develops, consideration will be given to the City's possible future involvement in the retailing of this utility. Mr. D. Quinn advised the Committee that within the next couple of weeks information will be sent out to all existing City of Kitchener customers advising them of the services which the City of Kitchener will be providing. On motion by Councillor G. Lorentz - it was resolved: "That the Mayor and Clerk be authorized to execute the 'Temporary Transportation Contract Assignment - Partial (TCPL)' and the 'Bundled Transportation Contract', both dated November 24, 1997, and an 'Acknowledgement and Indemnity' with Union Gas Limited, and further, That, under the direction of the General Manager of Public Works, further negotiations be pursued with Union Gas Limited to resolve to the extent possible, outstanding City concerns with terms and conditions contained in the two contracts described above, failing which other available remedies be acted upon to the extent necessary to seek satisfactory resolution." 7. GAS PURCHASE POLICY The Committee considered a report suggesting that the City of Kitchener should develop a gas purchase policy since the purchase of natural gas requires rapid, timely decision-making which is not possible with the restrictive criteria as found in the City's Purchasing By-law. The gas purchase policy being recommended reads as follows: 7. GAS PURCHASE POLICY (CONT'D) 1) The basic principle of minimum cost of gas for the minimum risk should be at the PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JAN UARY 12, 1998 -6- CITY OF KITCHENER forefront. This should be accomplished by monitoring and projecting economic market forces to develop a prudent purchase strategy. 2) The purchase strategy should review a three year horizon and develop a disciplined approach to developing a portfolio which varies the pricing and terms of the contracts to minimize risk. Gas should not be contracted for beyond the horizon of the strategy (ie. three years). 3) The purchase strategy should be monitored continuously but reviewed quarterly with status reports provided to the Public Works and Transportation Committee (PWAT). 4) Annually, a full report with an updated strategy will be presented to PWAT for approval by Council. 5) To ensure market competition is used but purchasing power is maximized, the City's expected gas supply needs will be placed with no less than 2, but no more than 4, primary suppliers. At no time should more than 65% of the City's annual supply be placed with one supplier. 6) The gas supply contracts will only be placed with large, financially secure suppliers with a proven industry track record. Only suppliers with an annual supply capability of 20 Bef (billion cubic feet) will be considered acceptable. Before supply contracts are placed, the City must ensure that the supplier has a strong financial rating as evaluated by an independent evaluator. The Dunn & Bradstreet minimum rating will be 1A1 (or equivalent Moody's rating). 7) The gas supply contracts will provide the City with options to swap between indexed and fixed prices at market based transaction fees. 8) The gas supply contracts will allow for the opportunity to modify volume requirements annually based upon forecasted needs. At no time should the annual gas supply contracted be more than 10% greater than the forecasted annual requirements. 9) The gas supply contracts will also provide for financial coverage of the City's alternative supply costs in the event of supplier failure to deliver. 10) All gas purchase transactions will be authorized by the General Manager, Department of Public Works, or designate, plus one of the City's signing officers for banking purposes. The Committee was advised that a 3 year horizon is being recommended because there is a need to plan ahead for gas needs, however, anything beyond 3 years is really a guess. If a situation should arise where existing suppliers should merge, creating a conflict with Policy #5, no action would be taken until existing contracts have expired. Ms. P. Houston referred to Policy #6 and pointed out that the use of this policy will ensure the City is dealing with the best possible suppliers. Following further discussion and on motion by Mayor C. Zehr - it was resolved: "That the following be adopted as the Gas Purchase Policy for the City of Kitchener, namely: 1) The basic principle of minimum cost of gas for the minimum risk should be at the forefront. This should be accomplished by monitoring and projecting economic market forces to develop a prudent purchase strategy. 7. GAS PURCHASE POLICY (CONT'D) 2) The purchase strategy should review a three year horizon and develop a disciplined approach to developing a portfolio which varies the pricing and terms of the contracts PUBLIC WORKS & TRANSPORTATION COMMITTEE MINUTES JAN UARY 12, 1998 -7- CITY OF KITCHENER to minimize risk. Gas should not be contracted for beyond the horizon of the strategy (ie. three years). 3)T he purchase strategy should be monitored continuously but reviewed quarterly with status reports provided to the Public Works and Transportation Committee (PWAT). 4) Annually, a full report with an updated strategy will be presented to PWAT for approval by Council. 5) To ensure market competition is used but purchasing power is maximized, the City's expected gas supply needs will be placed with no less than 2, but no more than 4, primary suppliers. At no time should more than 65% of the City's annual supply be placed with one supplier. 6) The gas supply contracts will only be placed with large, financially secure suppliers with a proven industry track record. Only suppliers with an annual supply capability of 20 Bef (billion cubic feet) will be considered acceptable. Before supply contracts are placed, the City must ensure that the supplier has a strong financial rating as evaluated by an independent evaluator. The Dunn & Bradstreet minimum rating will be 1A1 (or equivalent Moody's rating). 7) The gas supply contracts will provide the City with options to swap between indexed and fixed prices at market based transaction fees. 8) The gas supply contracts will allow for the opportunity to modify volume requirements annually based upon forecasted needs. At no time should the annual gas supply contracted be more than 10% greater than the forecasted annual requirements. 9) The gas supply contracts will also provide for financial coverage of the City's alternative supply costs in the event of supplier failure to deliver. 10) All gas purchase transactions will be authorized by the General Manager, Department of Public Works, or designate, plus one of the City's signing officers for banking purposes." 8. ADJOURNMENT On motion, the meeting adjourned at 10:15 a.m. L.F. Parkhouse, AMCT Deputy City Clerk