HomeMy WebLinkAboutADMIN 26-81CORPORATION OF THE TOWN OF NEWCASTLE
REPORT TO SPECIAL MEETING
OF COUNCIL
ADMIN. 26-81
RF:
RECOMMENDATIONS:
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
LIC 3A6
Storm Sewer Project, Courticc
August 1981 Tender.
O.H.A.P. Loans
It respectfully recommended that:
1. This report be received; and
TELEPHONE 623-3379
OCTOBER 14 1981
2. That the Town re -tender the Courtice Storm Sewer
project to possibly allow the construction of the
storm sewer portion of the project in 1.981-82 and
the dam and pond portion of the project at such time
as required through additional development approvals;
3. That the Town again consid(n Lhc Ilnancing OF Lhc
storm sewer project on the basis of the above reduced
tender; and
4. That the Town now advise the bidders of the tenders as
called for the Town Sewer Project in August of 1981,
that the Town will not be proceeding with the tender as
set out, and hereby directs the Director of Public Works
to ensure that each of the Kidder:, i.�, cippropr_ialel.y
advised and their deposits refunded.
-2 -
BACKGROUND:
In•1977 the Town entered into two agreements with the
Ministry of Housing through the Ontario Housing Action Program
(O.H.A.P.), to provide housing in the Courtice Urban Area.
The first agreement provided the Town with a grant to aid
in the costs associated with developing housing units for
low or middle income families (an incentive for expeditious
planning approvals). A total of $249,225 was advanced to
the Town and was set aside in a reserve account. In 1979
approximately $50,000.00 was drawn from the account to pay for
planning studies undertaken on the 'Town's behalf.
Currently the account stands at approximately $235,000.00,
(further interest adjustments are i() be mnde in 1981).
The second agreement provided for an interest free loan for
the provision of storm sewers in l.hc Courtice Urban Area to
drain two drainage areas including two plans of subdivisions
(Courtice Heights Subdivisions).
(These subdivision plans were referred to the Ontario Municipal
Board by the City of Oshawa and others and subsequently approved.
The Town executed subdivision agrecnxnlr wiLh Courtice
Heights Ltd. in 1977 and extended the agreements once. The
agreements have now expired. The draft plan approval of
the plans was due to expir.c :in Juno of 1981 and was extended
for a further 1 year period to June of 1982).
The second agreement in respect of'. !;Wr:m sewers, war to
provide the Town with an interest free loan for the construction
of storm sewer works, set out as f.ol.lows:
-3 -
Area #1 (South)
Storm sewer $91,200.00
Head Wall $ 5,000.00
Erosion Protection $10,000.00
Retention Pond $25,000.00
Sub -total $152.,000.00
10% Engineering and
10% Contingencies $ 30,420.00
Total Construction $182,520.00
Land acquisition $ 56,000.00
Surveying and Legal $ 23,850.00
Total Project Cost $262,370.00
Area #2 (North)
Storm sewer $44,900.00
Head Wall $ 2,000.00
Erosion Protection $ 5,000.00
Sub -total $51,950.00
108 Engineering and
10% Contingencies $ 10,390.00
Total Construction $ 62,340.00
Land acquisition $ 7,500.00
Surveying and Legal $ 6,900.00
Total Project Cost $ 76,830.00
Total Gross Cost of Projects
for Drainage Areas #1 and 42 $339,200.00
CMHC Grant Estimate $ 56,500.00
Total amount of loan
from the Minister $282,700.00
-4 -
The second agreement calls for the Town to undertake several
matters, highlighted as follows:
1. Repaying the loan (any part) 5 years from the
date any money was given to the Town by the
Ministry;
2. Constructing the storm sewer work and expediting
the development of the lands;
3. Obtaining necessary Municipal Board approvals to
borrow the money.
The Ministry of Housing indicated in early 1981 that they would
advance $350,000.00 to the Town recognizing that the original
amount was subject to inflation and that the $56,500 shown
as C.M.H.C. Grant was no longer available (cancellation of
C.S.C.P. Program by Federal Government 1980/81).
The Town has received Municipal Board approval to borrow up
to $350,000.00 for the storm sewer project. Additional
borrowing will require additional Municipal Board approvals.
In accordance with the provisions of the second O.H.A.P. agreement,
the Town undertook a proposal call in August of 1981 and, as
members of Council are aware, received several bids in excess
of the loan amount. The bids and costs; incurred to date are
summarized on the following tables.
Please note that the funds listed cu; expenditures to date for
land, legal, survey and engineering costs are rounded figures
and do not represent our final costs.
-5 -
SUMMARY OF BIDS RECEIVED FROM AUGUST 1981 TENDER CALL
PROJECT COSTS FOR CONSTRUCTION
Contract $481.601.00
Contingencies 14,500.00
Soils 6,000.00
Design, Tender,
Supervision and Layout 73,899.00
Total $576,000.00
Part A
Part B
Dam
Sewer
Total
Tripp Construction Ltd.
$245,881.00
235,720.00
481,601.00
J. C. Romano Sons Ltd.
316,049.00
206,520.00
522,569.50
Dagmar Construction Ltd.
330,881.51
195,850.54
526,732.05
Ron Robinson Ltd.
317,466.00
216,786.00
534,252.00
Repak Construction Ltd.
274,496.00
281,880.00
556,376.00
Craftwood Const. Co. Ltd.
452,065.00
247,801.00
699,866.00
Engineer's Estimate
250,919.00
289.100.00
540.019.00
PROJECT COSTS FOR CONSTRUCTION
Contract $481.601.00
Contingencies 14,500.00
Soils 6,000.00
Design, Tender,
Supervision and Layout 73,899.00
Total $576,000.00
-6 -
SUMMARY OF COSTS TO DATE
Land acquisition $113,700.00
* Legal fees 8,500.00
* Appraisals 9,500.00
* Engineering 21,400.00
* Land Surveyor 4,700.00
* Preparation of tender design 3,200.00
and advertising
$161,000.00
* (Not final costs)
TOTAL
COSTS TO DATE
* $161,000.00
* (Not final costs)
PLUS PROJECT ESTIMATED COSTS
$576,000.00
SAY
$737,000.00
$740,000.00 *
ullg
0
-AREn�
I'M
4 2
IM.
Following the tender opening in August, staff convened a meeting
with Ministry of Housing staff to discuss the possibility of
1) obtaining additional loan funds and 2) adjusting the loan
repayment schedule to correspond with the receipt of lot
development charges through the approval of development.
Staff note that is has been the municipality's intention to
repay the O.H.A.P. Loan through lot levies, i.e. at no cost to
the Newcastle ratepayer.
The attached letter to the Minister of Municipal Affairs and
Housing was forwarded by the Mayor as a result of the staff meeting.
The Town has been advised by the Ministry that no additional
funds are available under the O.H.A.P. agreement.
Staff have also met with the owners of the Courtice Heights
Subdivision Ltd. (the major property owners in the two storm water
drainage areas) as to what their financial participation in the
project might be. They have indicated verbally that they are not
in a position to make up the d.iffercncc between the total estimated
project cost and the loan amount.
It was suggested that it might be possible to phase the storm
sewer project in order to take advantage of the $350,000.00 interest
free loan and to "spread -out" the total cost to more closely match
the approval of development. Staff have reviewecl this possibility
and have discussed same with the Town's consulting engineers, and
the Central Lake Ontario Conservation Autthoiity staff.
Briefly stated, it is possible to phase the project by modifying
the tender call and proceeding with the sewer portion first, and
installing the dam and pond portion in the future as development
proceeds.
-9 -
This possibility, acceptable to the Conservation Authority would
require re -tendering the project according to modified designs.
The phased construction program would allow approximately 100
units to be constructed in the southern drainage area, on the
basis of the piped portion of the project alone. Development of'
over 100 units in the southerly drainage area will require
construction of the drain and pond portions of the contract.
It is important to note that the tender calls to date pertain
to the work in the southerly drainage area only.
None of the figures presented pertain to the northerly works
(land costs are included).
The Town's consulting engineers have prepared the following cost
estimate for the construction of the sewer portion of the
southerly storm sewer.
$246,000.00
$ 20,000.00
$ 6,000.00
$ 39,000.00
$ 9,000.00
$320,000.00
Sewer
Control structure
Soil tests
Tender, design supervision
Contingencies
-10-
XON16l01"s
On the basis of the information above and the decisions made by
the Ministry of Housing staff feel that the Town is not in a
position to award a contract for the full storm sewer project
(sewer, drain and pond) at this time. Staff feel it would be
appropriate for the Town to advise the bidders on the August
tender call of this immediately and to direct the Director
of Works to return the tender deposits forthwith.
A recommendation has been included in this report to that effect.
The tenders must be awarded under the provision of the tender
call by October 15 1981.
-11 -
Staff feel that there are three option:; available to the Town
in respect of the Courtice Storm Sewer Project:
Option 1. "Do nothing"
Option 2.
Option 3.
Proceed with a phased construction project
Proceed with the total project at one time
Staff have already dismissed option three as an alternative as
noted above.
Staff have outlined the three alternatives as follows:
Option 1. "Do nothing"
* Do not proceed with tendering; no project under
the agreement.
* Do not receive Llic O.H.A.P. interest free loan.
(Note that O.II.A.P. funding will be withdrawn
totally March 31 1982).
* Absorb costs of expenditures to date; (take
out of O.II.A.P. reserve under first ayrecmenL?)
* Renegoatiate subdivision agreement in future to have
developer/developers inr,tnll works at their
"front-end" cost. DevclopmenL becomes a "longer-term"
proposition.
* Do not utilize cap.iitul investwunL i.n ground
(i.e. Regional sanitary sewer and water systems).
Loss of revenue to Region because of prolonged development
* Legal implications?
-12 -
Option 2. Proceed with a Phased Construction Project
* Proceed with sewer portion of project on basis
of phased construction ($320,000.00).
* Finance existing expenditures through budgets on
first O.H.A.P. Loan.
* Finance difference between total project cost
and loan through budgets and first O.H.A.P. Loan
* Pursue sources of financing.
Option 3. Proceed with the total project at one time
* Proceed with $576,000.00 (npproximaLely) project
by letting tender to lowust bidder.
* Finance existing expenditures through budgets
or first O.H.A.P. Loan.
* Finance difference between total project cost
and loin through hudycl a and I i I nt U.II.�.1�. Inv,u,
* Pursue sources of financing.
RespoQtfully submitted,
D.N. Smith, M.C.I.P.
Administrator
att.
C(DD ?4 � IQ D I I A "A I D N A)
OFFICL Of 1111_
MAYOR
GARNET B. RICKARD
w tI UXI I, IJ I(,C ! fREET
I:OWMANJILLE, ONTARIO
K C 3A6
IELFPHONE 6233379
eplcwhvr 101h, 19MI
_ The Ilunourable Claude BennetI
Minister of Municipal. Affairs and Housing
Fourth Floor
Hearst Block
Toronto, Ontario
M7A 2K5
Dear Mr. Minister:
RIC:
Ontario Ifousiny,
_cl
ll
H PIor,r:10
Lunn
Courtier Storm
k i
l� l
r, l c i l i l
i s
1, l
u :✓ I,
of Nomrar.tlr
RveonLly,
stall
of „nl
mi"n"I
lV
mv!
Willi
municipal staff
to
review the
stnin:
of
they ouLst:inding
"O.H.A.F."
loan agreement
with
the
'l�WH
of ?JPWcJ1
;t ie,
III
the provision
of
storm water
control
Inviliti,5
in
the
Courtice area
of
this municipality,
following;
on the
staff's discussions.
I now
resperllully
roqu,ml
on
WWI—
of the own,
Ihot
you r(,I1Kidvr
IHPIV1,
I H n Illi'
nill„IIIII
01 1 h
interest free
loan
to the Town
,II
NPwunnLle
in
111,'1'1
,(!_11:1l.
project costs
and
further [hat
_v,n
r,"nidvr
rovi::inn
the
repayment schedule
for the
loan, t
o ,' „
I I I c l d v
with
the
actual.
rate of development
in the
Enurl_ftc
[Iron.
As of
March of
UK Ycni,
your Minintry
ham,
indicated that
up
to ;350,000.00
in
:Ivniiable
to
the
Town
for the construction
of storm
walor
,,,nlrol
facilities
in the Courtice
area
of the
Town „I
N('wcartle.
The
'town
has now received
tenders for
1111d"rtnK
illp
the
rnn::l_rurl
ioa
of the works
req ui
red for ::t
„rm do
I o.l;.l,l�
oleo
Illilnk(
I oar
(as set out
In the
agrvomont
with
th,
l"Wil);
151111
111q
Ill('
project cost
to an
estimatod
$57t,,
uuU,l,n.
Thi_c
:imuunt
includes the
lowest
tvnd&r
of ;�4:,I
l.nl
.0(i; `i171,5un.utl
I"r
contingencies;
$6,000.00
for
soil
i,•.An
nod V/i,01
.45 for
design, tender,
supervision
and Iiv
ui
ecpcn;r:;.
In
addition to
this
amount of
mono,,
; h
f, urt Ila;;
a I rondl
incurred expenses
of .1611, 111,0P,
1. (.,
1.111,1
W%aL,
The Honourable Claude Bonnotl 1n.p Y Solrlrmhrr loth, 1981
surve Y and enTineerincosts annori:tvd with the project. 'There
� b
will be some minor upward adjustm-u t to theso fiy,nrv5 to
reflect outstanding, legal cnl:lm. In W1:11, the 'I Ir:,u HPOA':
at least $136,400.00 (pIu:.) In M I o 1 r_.i:I Ing nnd ozln•rLrd
expenditures. The $736,400.00 Iipnio rvpresenlm an increase
in the loan amount of at least W b,400.110. It should be
noted again that this flgnlp in Tui &nivagV We" oum1bPr one
only.
The Town of NQwrastle in dependent on Che
development of the Courtiro areal .In the source of financing,
for the O.H.A.P. Loan. In order lot the Town to reasonably
proceed with the project, it is imqursted LhaL the repayment
schedule be revised to coincide with the receipt of develop-
ment levies.
For your information and further consideration,
the tender received by the Town expires on October 15th, 1981.
We therefore would appreciate your rnmmrnin before that time.
Thank you very much for your attention to these
matters.
Kindest regards,
GARNRT B. RICKARI)
IN ; u r
GBR/mr
cc: Mr.
G.M. Farrow,
FxccnLiv
01rrctor, I'Inns
Administration
Divis!"H .
Mr.
L. Finch,:
Dlrpcloi .,I
uPrrntioln: C„uLrol Branch
Mr.
W. Dew,,0hcrntionc
Cunlrol
IiranrL
Air.
3. Dunham.
Direcioi of
I'n1,11r. Wnrks, Town of NewcasC
Mr.
D. Smith,
,Adminint ini„r,
'10WH of 'irWUng1 le
Mr.
D. Sim::;
5 o 1 1 a i i , : , 'I --
H � I i:1rr�a:I Ie
e
CORPORATION OF IHi= TOWN OI NI WCASTI 1_
d0 I N%P[RAN( I '.IPII I
hown�nrlvll I I � III I,.I� II,
t It IAr,
II I HV)HC. 627-9719
September I.Oth, 1981.
The Ministry of Municipal- Affairs
and Housing
Eighth Floor
56 Wellesley Street West
Toronto, Ontario
M7A 2K4
Attention: Mr. Q M. Farrow, P: ;,i rnl ivy Ui rerlor
Plans Administration nivini,n
Dear Sir:
RE: OntarIU Ho usinn :Arti„i, Pingrim Lunn
t,ourLlro K Iorm U I I u I rat'i 1 iI Ir',
Town of Nowcasl l,'
1 would bike to than!. 1"H nud your nt:Ifl, fur
taking time out of your busy schvdulos to meet with Mr.
Jack Dunham and myself in resporl I IIT ih„vc.
Following from our digcuKninu, Mayor hickard
of the Town of Newcastle, his ✓rillan lu the. IlonouiNhle
G. Bennett regarding UP Town's Iinan,ini position and
the O.H.A.P. loan noted nbova. A C ,pv ul his Iott, r is
attached.
It in my un,lerutandim lhdl your still will
be reviewing the t'own's requ,•st for additional Loan monies
and a revised repayment schcdulo with Treasury and
Economics staff and will he rev1aw1np the m a L V P r 1uteroa11y
with a view to replying, to the W" n within the noxi two
weeks. I certainly would appreciate• "ulr reply within
this time frame as our t,•nder c>.nir,•n ,.n U1 tuh��r 15th 111 i;1
and as you are aware, then Iioivu �li.IlK inrlhrr Iilrrl =nr
loan requirements.
Fivasean n"I hositil "--�nI", I Nu i! I cnn
The Ministry of Mnnir.ipnI
Affairs and Housing
be of any assistanrr.
DNSJmr
Enc. (1)
cc:
P.,;, !;vPI �MhvI 15th, 1981.
Y.urw very truly,
D. N. SMITH, M.C.I.P.
Admi.niutrator.
Mr.
D.
Sims, Sollcilnr,
'fnw" of
NeWvantlre
Mr.
J.
Dunham; DUr ctur
of Public.
Work:;, Towu ur NeweasO
Mr.
L.
Fincham; Direc1oi
„I Uperal-ionr.
Control, Branch
Mr.
W.
Dew,-Operntions Control
Branch