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HomeMy WebLinkAboutWD-58-92 THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: JULY 6, 1992 Res. Report#: File #: _Rf_._3_l_._02 By-Law# Subject: RECONSTRUCTION OF KING STREET (HIGHWAY NO. 2) AND MEARNS AVENUE, BOWMANVILLE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-58-92 be received; 2 . THAT staff be authorized to advertise for tenders for the reconstruction of King Street and Mearns Avenue; 3 . THAT the financing of the project be as detailed in Report WD-58-92; 4 . THAT the Ministry of Transportation and the Region of Durham be advised of Council's decision; and 5 . THAT a copy of Report WD-58-92 be forwarded to the Region of Durham and the Ministry of Transportation. --------------------------------------------------------------- REPORT 1.0 ATTACHMENTS No. 1: Key Map /2 1116.PR,111 I RE CYCLED RAfER REPORT NO. : WD-58-92 PAGE 2 2.0 BACKGROUND 2 . 1 Provision has been made in the approved 1992 Capital Budget and Four Year Forecast for the land purchase in 1992 ($150,000) and construction in 1993 of King Street, from Frank Street to the east branch of Soper Creek, and of Mearns Avenue, from King Street to Orchard Park Drive. 2 .2 The approved 1992 Budget for road construction and maintenance very closely matches the $2,479,300 road subsidy allocation provided by the Ministry of Transportation in 1992 . 2 . 3 In past years the Town has applied for and received a supplementary subsidy from the Ministry of about $250,000 . This year, because of the restrictions in budget, we did not have funds for a project that we could apply for a supplementary subsidy. 2 .4 The Treasurer has advised Council through Report TR-39-92 that there are funds available which would accommodate $250, 000 required for the above project. It was, therefore, recommended in Report TR-39-92 that an attempt be made to use this surplus to increase the road construction in 1992 . 2 .5 After having considered various projects in the 1993 Forecast, it was decided to attempt to get the King Street/Mearns Avenue project started in 1992 and complete the project in 1993 . I 2 . 6 The Town has a Connecting Link Agreement with the Ministry of Transportation for King Street, from Regional Road 57 to Cemetery Road. Connecting Link Agreements with the Ministry provide that the Ministry of Transportation pays a 90% subsidy for the maintenance and reconstruction of the road. I Land purchase receives a 50% subsidy allocation; storm sewers . . . /3 i i i REPORT NO. : WD-58-92 PAGE 3 receive a variable subsidy, which depends on the size of the storm sewers; and sidewalks receive no subsidy. The items which receive a 50% subsidy are known as "Chargeable Under Part X of The Act" . 2 . 7 In order to proceed with the project this year, the following issues have to be addressed: a) Funds from the Ministry for those items "Shareable Under The Connecting Link Agreement" . The Ministry has advised us that these funds are available. b) Funds from the Ministry for those items "Chargeable Under Part X of The Act" . These items can be dealt with by applying for a "Supplementary Subsidy" . If the Supplementary Subsidy is not available in 1992, the contract can be structured such that payment for these items will not be made to the Contractor until 1993, at which time the Part X subsidy can be received as part of the normal subsidy in 1993 . c) Funds for work on the contract on behalf of the Region of Durham for work on sanitary sewers and watermains . This work, which is estimated to be $416,000, is the first work which the contractor will do and the work will probably be completed in 1992 . This problem can be solved by the Town financing the cost of the work and the Region repaying the Town for the work in 1993 . . . . /4 I J ` 6 REPORT NO. : WD-58-92 PAGE 4 On Wednesday, June 10, 1992, Regional Council approved the following resolution: "a) THAT the Region of Durham agree with the proposal by the Town of Newcastle to advance the reconstruction of Highway No. 2 (King Street) in Bowmanville (Frank Street to Soper Creek) from 1993 to 1992, subject to the Town of Newcastle providing interim financing for the Region's share of the required watermain and sanitary sewer construction; and b) THAT provision be made in the Region's 1993 Capital Budget for water supply and sanitary sewerage to reimburse the Town of Newcastle for the watermain and sanitary sewer work carried out during 1992 on Highway No. 2 in Bowmanville (Frank Street to Soper Creek) . " d) The purchase of land required for the project is now completed. e) The Town's share of the project can be obtained from the surplus funds from 1991 and from the funds contained in the 1992 approved budget. 2 .8 Financing the Project The financing of the project will be as follows: Shareable Chargeable Under C.L. Under Part X Chargeable Chargeable Estimated Agreement of the Act to the to Region Gross Cost 908 Subsidy 508 Subsidy Town of Durham $2,728,500 1992 $1,283,121 $941,279 $88,001 $415,650 Exp. 1,558,650 627,300 515,700 0 415,650 1993 Exp. 1,169,850 655,821 425,579 88,001 0 REPORT NO. : WD-58-92 PAGE 5 2 .9 Cost of Financing the Region's Share Assuming that all of the Region's work is completed in 1992, that the Region reimburses the Town for the cost of their works by March 31, 1993, and that the interest rate is 10%, the cost to the Town of financing the Region's work will be about $20,000. It is recommended that the funds for the interim financing of the Region's portion of the project be obtained from the Roads Contribution Reserve Fund (Account No. 1110-174-X) . 2 . 10 Supplemental Subsides An application for supplemental subsidy has been submitted to the Ministry of Transportation, in the event that some funds become available because some other municipality is not able to use funds allocated to them through a supplementary subsidy. The Town will be advised by September or October, 1992, if the Ministry of Transportation has funds available for supplementary subsidy. The contract for the project can be structured such that, if supplemental subsidy is not received, the contractor will not be paid for the Part X work until 1993 . The Town will then receive the subsidy as part of the Town's 1993 subsidy. Based on the worst case scenario, that is that a supplementary subsidy is not available, the financing of the project in 1992 will be as follows: M.T.O. TOWN TOTAL Shareable Under C.L. Agreement $564,570 $ 62,730 $ 627,300 Chargeable Under Part X 257,850 257,850 515,700 Chargeable to the Region 0 415,650 415,650 i Financing Charges for Region's Works 0 20,000 20,000 TOTALS $822,420 $756,230 $1,578,650 . . . /6 REPORT NO. : WD-58-92 PAGE 6 2 . 9 Schedule for The Project The proposed schedule for the project is as follows: Advertise Tenders - Friday, July 24 Close Tenders - Friday, August 14 G.P. & A. Meeting - Tuesday, September 8 Award Tender - Monday, September 14 Commence Construction - Monday, September 21 Respectfully submitted, Recommended for presentation to the Committee, _X r Walter A. Evans, P.Eng. , Lawrence E. Kot f Director of Public Works Chief Administr t've Officer /---)4,�1,;6�----i M ie Marano, H.B.Sc. AMCT, Treasurer WAE*ph June 24, 1992 Attachment pc: Ministry of Transportation Central Region, Atrium Tower 1201 Wilson Avenue Downsview, Ontario M3M 1J8 Attention: Doug Goltz Region of Durham Works Department 105 Consumers Drive Whitby, Ontario L1N 6A3 Attention: V. A. Silgailis, P.Eng. , Commissioner of Works Ministry of Transportation Central Region, Atrium Tower 1201 Wilson Avenue Downsview, Ontario M3M 1J8 Attention: David Moule LEGEND ROAD WIDENING REQUIRED w z W a ORCHARD PARK DR. m ir SAVANNAH LAND a JOHN AND CAROL w CORPORATION = SORNBERGER H 294 KING ST. E 340 KING ST.E. m J - Q C9 KING STREET EAST w H D W Z W w � Q 1-- tn O Z CL z SIBJEL INVESTMENTS LTD. a m 229-237 KING ST. E . w MANUFACTURES LIFE INSURANCE COMPANY 225 KING ST. E L_J L1 EJ 1 Co"11aN t 1 � © • ' ��� rY Y.nT lPR b ,t--, r aMpC C _•4ec!vl 1���b unueR, Kv„ N Cti tiwl t NIGNWA H' 2 f ST^ .N( „ «f.cl. T DRAWN J . DATE = FEB. 1991 Nc� c+cs � Inr a, ATTACHMENT NO. 1 WD-58-92 KEY MAP �6