HomeMy WebLinkAboutADMIN 82-05V _ j (a)
CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MEETING OF JANUARY 25 1982
ADMIN. NO. 82-5
SUBJECT: COURTICE STORM SEWER PROJECT
"RE -TENDERING"
ADMIN. FILE #5.4.3.2
RECOMMENDATIONS:
1. That this report be received; and
2. That the matter of re -tendering of the Courtice Storm Sewer
project as outlined in Administrator's report Admin. 26-81,
be lifted from the table by Council and considered.
BACKGROUND:
On October 19 1981, Council considered Administrator's report Admin. 26-81,
copy attached, and tabled the matter for 30 days. (Council Resolution
#C-1237-81).
-- The matter was again considered on November 16 1981 and was again tabled
pending the receipt of a response to the Mayor's letter of November 6 1981
to the Minister of Municipal Affairs and Housing. The Mayor's letter
followed on a meeting with the Minister on November 5 1981.
On November 25th 1981, the attached letter was received from the Minister.
On December 17 1981, Ontario Hydro indicated through the Hydro Liaison
Committee that they would be willing to consider the execution of a
supplementary agreement with the Town for the advancement of funds for
the Courtice Storm Water Management Project. The details of that
agreement are to be determined, i.e. (Station A or Station B accounts).
ADMIN. NO. 82-5 -2-
COMMENT:
Staff feel that the Town should proceed to re -tender the Storm Sewer
Project with a view to a Spring of 1982 construction start, provided
that a suitable amendment to the O.H.A.P. loan agreement is prepared
and a suitable supplementary agreement with Ontario Hydro is finalized.
A new subdivision agreement with Courtice Heights Ltd. will also be
required.
Staff feel that Council should decide if the storm sewer contract is to
proceed in 1982, as there will be a great deal of staff time required
in the next few months to complete the above referenced agreements and
to prepare the necessary documents.
Respectfully submitted,
DNS:nof D. N. Smith, M.C.I.P.
Administrator
att.
CORPORATION OF THE TOWN OF NEWCASTLE
REPORT TO SPECIAL MEETING
OF COUNCIL
ADMIN. 26-81
RE:
RECOMMENDATIONS:
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L7 C 3A6
Storm Sewer Project, Courtice
August 1981 Tender.
O.H.A.P. Loans
It is 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 1981-82 and g'
the dam and pond portion of the project at such time G �a'
as required through additional development approvals;
3. That the Town again consider the financing of the
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 bidders is appropriately
advised and their deposits refunded.
- -2-
BACKGROUND:
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 to be made in 1981).
The second agreement provided for an interest free loan for
the provision of storm sewers in the 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 agreements with 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 expire in June of 1981 and was extended
for a further 1 year period to June of 1982).
The second agreement in respect of storm sewers, was to
provide the Town with an interest free loan for the construction
of storm sewer works, set out as follows:
-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
loo 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
10% 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 #2 $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 1986/81).
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 as 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
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
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
SUMMARY OF COSTS TO DATE
Land acquisition
* Legal fees
* Appraisals
* Engineering
* Land Surveyor
* Preparation of tender design
and advertising
* (Not final costs)
103tvi l
COSTS TO DATE PLUS
* $161,000.00
* (Not final costs)
-6- -
!. 1 a
$113,700.00
8,500.00
9,500.00
21,400.00
4,700.00
3,200.00
$161,000.00
PROJECT ESTIMATED COSTS
$576,000.00 $737,000.00
SAY $740,000.00 *
I
cawlrc�
IV , I
iL
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 difference 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 reviewed this possibility
and have discussed same with the Town's consulting engineers, and
the Central Lake Ontario Conservation Authority 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—
Ica
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 £iqures 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 Sewer
$ 20,000.00 Control structure
$ 6,000.00 Soil tests
$ 39,000.00 Tender, design supervision
$ 9,000.00 Contingencies
$320,000.00
-10 -
COMMENT:
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 options available to the Town
in respect of the Courtice Storm Sewer Project:
Option 1. "Do nothing"
Option 2. Proceed with a phased construction project
Option 3. 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
IV C�)
"Do nothing"
* Do not proceed with tendering; no project under
the agreement.
* Do not receive the O.H.A.P. interest free loan.
(Note that O.H.A.P. funding will be withdrawn
totally March 31 1982).
* Absorb costs of expenditures to date; (take
out of O.H.A.P. reserve under first agreement?)
* Renegoatiate subdivision agreement in future to have
developer/developers install works at their
"front-end" cost. Development becomes a -"longer-term"
proposition.
* Do not utilize capital investment in ground
(i.e. Regional sanitary sewer and water systems).
Loss of revenue to Region because of prolonged development.
* Legal implications?
-12-
d j Ca -.
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 (approximately) project
by letting tender to lowest bidder.
* Finance existing expenditures through budgets
or 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.
Resp t ully submitted,
D.N. Smith, M.C.I.P.
Administrator
att.
OFFICE OF THE
MAYOR
GARNET B. RICKARD
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
1 1 C 3A6
TELEPHONE 623-3379
September 10th, 1981
The Honourable Claude Bennett
Minister of Municipal Affairs and Housing
Fourth Floor
Hearst Block
Toronto, Ontario
M7A 2K5
Dear Mr. Minister:
RE: Ontario Housing Action Program Loan
Courtice Storm Water Facilities, Town
of Newcastle
Recently, staff of your ministry met with
municipal staff to review the status of the outstanding
"O.H.A.P." loan agreement with the Town of Newcastle, for
the provision of storm water control facilities in the
Courtice area of this municipality. Following on the
staff's discussions, T now respectfully request on behalf
of the 'Town, that you cons9_iler Lncreasing the amount of the
interest free loan to the Town of Newcastle to meet actual
project costs and further that you consider revising the
repayment schedule for the loan, to coincide with the actual
rate of development in the Courtice area.
As of March of this year, your Ministry has
indicated that up to $350,000.00 is available to the Town
for the construction of storm water control facilities
in the Courtice area of the Town of Newcastle. The Town
has now received tenders for undertaking the construction
of the works required for storm drainage area number one
(as set out in the agreement with the Town); bringing the
project cost to an estimated $576,000.00. This amount
includes the lowest tender of $481,601.00; $14,500.00 for
contingencies; $6,000.00 for soil tests and $73,399.00 for
design, tender, supervision and layout expenses. In
addition to this amount of money, the Town has already
incurred expenses of $160,431.00,. for land acquisitions, legal,
........../2
I V
The Honourable Claude Bennett -Page 2- September 10th, 19_81
.. survey and engineering costs associated with the project. There
will be some minor upward adjustment to these figures to
reflect outstanding legal costs. In total, the Town needs
at least $736,400.00 (plus) to meet existing and expected
expenditures. The $736,400.00 figure represents an increase
in the loan amount of at least $386,400.00. It should be
noted again that this figure is for drainage area number one
only.
The Town of Newcastle is dependent on the
development of the Courtice area as the source of financing
for the O.H.A.P. loan. In order for the Town to reasonably
proceed with the project, it is requested that 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 comments before that time.
Thank you very much for your attention to these
matters.
Kindest regards,
i
GARNET B. RICKARD
Mayor.
GBR/mr
cc: Mr_ G.M. Farrow, Executive Director, Plans
Administration Division
Mr. L. Fincham; Director of Operations Control Branch
Mr. W. Dew, -Operations Control Branch
Mr. S. Dunham,"Director of Public Works, Town of Newcastle
Mr. D. Smith, Administrator, Town of Newcastle
Mr. D. Sims,4'Solicitor, Town of Newcastle
CORPOR„iION OF THE TOWN OF NEWCAS._E
40 TEMPERANCE STREFT
BOWMANVILLE, ONTARIO
LIC 3A6
TELEPHONE 623-3374
September 10th, 1981
The Ministry of Municipal Affairs
and Housing
Eighth Floor
56 Wellesley Street West
Toronto, Ontario
M7A 2K4
Attention: Mr. G. M. Farrow, Executive Director
Plans Administration Division
Dear Sir:
RE: Ontario Housing Action Program Loan
Courtice Storm Water Facilities,
Town of Newcastle
I would like to thank you and your staff, for
taking time out of your busy schedules to meet with Mr.
Jack Dunham and myself in respect of the above.
Following from our discussion, Mayor Rickard
of the Town of Newcastle, has written to the Honourable
C. Bennett regarding the Town's financial position and
the O.H.A.P, loan noted above. A copy of his letter is
attached.
It is my understanding that your staff will
be reviewing the Town's request for additional loan monies
and a revised repayment schedule with Treasury and
Economics staff and will be reviewing the matter internally
with a view to replying to the Town within the next two
weeks. I certainly would appreciate your reply within
this time frame as our tender expires on October 15th, 1981
and as you are aware, then potentially further affects our
loan requirements.
P7 -ease do not hesitate to contact me if I can
........../2
The Ministry of Municipal
Affairs and Housing -Page 2- September 10th, 1981
be of any assistance.
Yours very truly,
D. N. SMITH, M.C.I.P.
Administrator
DNS/mr
Enc. (1)
cc: Mr. D. Sims Solicitor, Town of Newcastle
Mr. J. Dunham, Director of Public Works, Town of Newcastle
Mr, L. Fincham; Director of Operations Control Branch
Mr. W. Dew,,Operations Control Branch
Office of the
Minister
t 1
.0
Ontario
Ministry of
Municipal Affairs
and Housing
REC� J%J0
DEC 801
November 25, 1981
His Worship
Mayor Garnet B. Rickard
Town of Newcastle
Office of the Mayor
40 Temper e Street
Bowmanv e, Ontario
L1C 3 /
Dear
Re: Ontario Housing Action Program Loan
Courtice Storm Water Facilities
Town of Newcastle
This follows our meeting on November 5, and confirms
your understanding of the loan situation with respect
to the Courtice project expressed in your letter of
November 6. I regret that I was unable to comply with
your request for additional funds as they are simply
not available for this project.
I understand you are considering proceeding with only
a portion of the storm drainage project, which will
still, however, exceed in cost the $350,000 loan
commitment made to this project. To assist the munici-
pality in initiating a partial proposal, we are willing
to reschedule repayment of the loan under clause 1(3)
of the agreement dated March 11, 1977 In this agree-
ment, clause 1(4) states that it is required to repay
the loan in full on the fifth anniversary of the date
on which the monies were paid. This clause can be
amended to read:
"the loan shall be repaid in 15 equal con-
secutive annual instalments, the first of
such instalments to be payable on the third
anniversary of the date on which the monies
were paid",
(Continued)
Hearst Block
Queen's Park
Toronto, Ontario
M7A 2K5
416/965$456
His Worship
Mayor Garnet B. Rickard
Should lack of development at the time the first
repayment comes due (i.e. in the fourth year following
disbursement of the loan) prevent a full instalment
being paid, this payment may be made on the following
basis:
"50% of the intended payment (i.e. 1/15 of
the amount of the loan) and 50% based upon
a fixed amount per residential unit of
development. Any shortfall in the latter
50% to be paid as the first component of
the following year's payment".
Although from our point of view it would be preferable
to disperse the loan within the current fiscal year
1981/82, it may not be possible to conclude all matters
relating to the project satisfactorily within that time
frame. In that case, and notwithstanding a statement
contained in a letter of March 26, 1981 from
Mr. J.B. Gardiner of my staff to Mr. Donald Smith of
yours, a request for the loan from you will be accept-
able in the 1982/83 fiscal year.
I repeat that I regret being unable to provide additional
loan funds for the storm water project, but hope that by
cutting back on the project, it will enable some develop-
ment to take place in the Courtice area.
M.P.P
Ottawa South
_ 2 _
His Worship
Mayor Garnet B. Rickard
Should lack of development at the time the first
repayment comes due (i.e. in the fourth year following
disbursement of the loan) prevent a full instalment
being paid, this payment may be made on the following
basis:
"50% of the intended payment (i.e. 1/15 of
the amount of the loan) and 50% based upon
a fixed amount per residential unit of
development. Any shortfall in the latter
50% to be paid as the first component of
the following year's payment".
Although from our point of view it would be preferable
to disperse the loan within the current fiscal year
1981/82, it may not be possible to conclude all matters
relating to the project satisfactorily within that time
frame. In that case, and notwithstanding a statement
contained in a letter of March 26, 1981 from
Mr. J.B. Gardiner of my staff to Mr. Donald Smith of
yours, a request for the loan from you will be accept-
able in the 1982/83 fiscal year.
I repeat that I regret being unable to provide additional
loan funds for the storm water project, but hope that by
cutting back on the project, it will enable some develop-
ment to take place in the Courtice area.
M.P.P
Ottawa South