HomeMy WebLinkAboutFIN-06-027 - City Application to Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF) Intake 3
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KITCHENER
Financial Services
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
September 5, 2006
Rob Browning, General Manager of Development and Technical
Services / Fire Chief
Pauline Houston, General Manager of Financial Services and City
Treasurer
Rob Shamess, Director of Engineering
Dan Chapman, Director of Financial Planning and Reporting
All
August 30, 2006
FIN-06-027
RECOMMENDATION:
City of Kitchener Application to Canada-Ontario Municipal Rural
Infrastructure Fund (COMRIF) Intake Three
THAT staff be directed to submit an application under intake three of the Canada-Ontario
Municipal Rural Infrastructure Fund (COMRIF) for the Sewer Lateral and Main Rehabilitation
project, which represents the City's highest priority for the purposes of the COMRIF program;
THAT the development of a joint initiative with the City of Waterloo be endorsed in order to
enhance the COMRIF intake three application;
AND FURTHER THAT the City's share ($4,984,277) of the total project cost ($14,952,831) be
funded from existing capital budget and forecast provisions for uncommitted capital (2006-2008)
and trench less sewer rehabilitation (2007-2009) as outlined in staff report FIN-06-027.
BACKGROUND:
In June, 2006 the governments of Canada and Ontario announced that intake three applications
for the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF) will be accepted up to
September 13, 2006. In order to ensure compliance with the funding application criteria, a
resolution of Council confirming the proposed project is necessary. Staff recommends that the
Sewer Lateral and Main Rehabilitation project be considered as Kitchener's highest priority for
the purposes of the COMRIF intake three application.
REPORT:
The COMRIF program was introduced by the federal and provincial governments in November,
2004. The current intake represents the third and final phase of the program, with $93 million of
the total grant funding allocation of $298 million remaining to be distributed. The priorities for
COMRIF intake three are the same as intakes one and two and include local bridges, local
roads, solid waste management, water and wastewater.
In 2005, the City submitted projects for COMRIF intakes one and two. Both applications related
to the repair and replacement of various bridge structures. The City received approximately
$133,000 of funding through intake one and no funding was received through intake two.
Recommended Proiect Scooe
Many areas of the City of Kitchener contain underground infrastructure which was installed prior
to 1950 and is reaching its maximum life expectancy. This is resulting in the premature failure of
both mainline sanitary sewer and sanitary sewer laterals, which ultimately leads to the sewer
pipes becoming increasingly susceptible to root infiltration, groundwater inflow and groundwater
infiltration. Blockages and sewer backups increase as result of the root infiltration and the
increased flows from infiltration and inflow.
The project proposed for the COMRIF application would allow for the cost effective rehabilitation
of problem areas using state of the art trench less technology (i.e. Cured in Place Pipe Lining or
CIPP for short). It is estimated that lining can be done for as little as 70% of the cost of
replacement while drastically reducing disruption to the public in comparison to conventional
methods. It is anticipated that the work could be completed over a 3 year period (2007 to 2009).
The project would include the rehabilitation of 2,500 laterals and 10,000 metres of associated
sewer main. In addition to the technical rationale for the project, staff is recommending that this
project be given priority because of indications received from upper levels of government that
this type of innovation has merit from a provincial and federal funding/policy perspective.
Alianment with Accelerated Infrastructure Proaram
In order to ensure that the work is done in the most cost effective manner for the City, each
candidate sanitary sewer would be evaluated against a number of conflicting priorities. Specific
projects would be evaluated against the condition of the other underground infrastructure. This
would ensure that lining occurs only in those locations where the sanitary sewer is the only
rehabilitation need. Projects would also be prescreened to ensure that the candidate sanitary
sewer is suitable for lining. This would include identification of sags, excessive structural
damage and capacity issues. By undertaking this advance analysis staff would ensure that the
prolonged life of the sanitary sewer would correspond with the adjacent underground
infrastructure.
Through the use of trench less technologies the City will be able to increase, on an annual basis,
the amount of sanitary sewer rehabilitated resulting in a shorter period of time for the overall
rehabilitation of underground infrastructure due to the cost-effective nature of the technology
(i.e. the current 30 year replacement program in the accelerated infrastructure program could be
shortened by 5 or more years).
Use of Trenchless Technoloav in the Past
The City of Kitchener has, for a number of years, employed trench less technologies on an
annual basis for the rehabilitation of mainline sewer, however, not to the extent proposed in the
application. The City has also used CIPP Lining for rehabilitation on sanitary laterals, although
once again not to the extent proposed in the application.
Joint Initiative with Citv of Waterloo
Staff recommends that the City work in conjunction with the City of Waterloo to complete similar
work. This strategy is being proposed to position the project favourably with the COMRIF
Secretariat and also to increase the scale of the project and reduce unit costs. This approach is
in keeping with the City's desire to participate in joint initiatives. Pending further clarification of
application rules it is proposed that separate applications be submitted by each city and that
each city reference the proposed partnership to carry out the work in a cooperative manner.
FINANCIAL IMPLICATIONS:
The overall project cost is estimated to be approximately $15 million (after GST rebate) with the
Federal and Provincial Governments funding 2/3 (approximately $10 million) and the City
funding the remaining 1/3 (approximately $5 million).
In order to fund the City's share of the total project cost, it is recommended that existing
uncommitted sewer capital budgets be allocated to this project from 2006 to 2008 (partially) and
that existing trench less rehabilitation budgets be allocated to this project from 2007 to 2009.
Traditionally, uncommitted sewer capital allocations have been reserved for the funding of the
sewer component of triple-funded accelerated infrastructure projects. However, given the
potential to receive three-for-one matching funds, staff is of the opinion that sewer rate payers
are well served by the redirection of existing uncommitted sewer budgets to this project.
Proiect Estimate
$ 10,000,000
5,000,000
850,000
15,850,000
897,169
14,952,831
4,984,277
Fundina Sources
Source
Uncommitted Sewer Ca ital
Trenchless Rehabilitation
Total
*existing balance in uncommitted sewer capital account as of report date
** total budget available in 2008 is $3.4 million
CONCLUSION:
The project proposed for the COMRIF application would allow for the cost effective rehabilitation
of problem sanitary laterals and mains using state of the art trench less technology. If
successful, the 2/3 funding support of upper levels of government would significantly reduce the
financial impact of rehabilitation on sanitary sewer ratepayers. Staff recommends that Council
support the submission of the application in conjunction with the City of Waterloo and that the
City's share be funded through existing sanitary sewer budgets from 2006 - 2009.
Rob Browning
General Manager of Development and
Technical Services / Fire Chief
Rob Shamess, P.Eng.
Director of Engineering
Pauline Houston, CA
General Manager of Financial Services &
City Treasurer
Dan Chapman, CA
Director of Financial Planning & Reporting
