Title
2015 Road Program - Mid-year update
Proposed Motion(s)
1)That Council receive the 2015 Road Program mid-year update as information.
2) That the 2015 Engineering Budget be amended to reallocate $225,000 of taxation towards a subdivision overlay of Eden Park Estates, as presented.
3) That the 2015 Engineering Budget be amended to reallocate $500,000 in Municipal Sustainability Initiative Capital funding from Range Road 274 Campsite Road, Highway 627 to Highway 628 for the construction of Parkland Drive, Range Road 21 to Highway 770.
Body
Administration Recommendation(s)
Administration supports the proposed motions.
Purpose
The 2015 Road Program mid-year update is intended to bring awareness to Council on the status of the 2015 Road Program as we reach the end of the second quarter. The motions in front of Council are to consider adding an additional subdivision pavement preservation project and to address a budgeting challenge with one of the 2015 projects.
Summary
As of July 1, 2015, the overall progress on the 2015 Road Program is ahead of schedule and under budget. With the help from favourable weather conditions, some 2015 initiatives have advanced earlier than originally anticipated and a significant number are on or ahead of schedule. Engineering Services believes this trend will continue into July and August and we will be ahead of schedule in many areas leading into September, particularly our overlay and pavement preservation programs. In addition to several projects being completed earlier than anticipated, we are also seeing a number of projects being completed below initial cost estimates. Tender prices for gravel crushing, ASBC (asphalt stabilized base course - cold-mix) and general contracting have been within or below anticipated numbers and combined with favourable construction conditions, have resulted in favourable prices for most of our projects, internal and external.
A breakdown of our 2015-2018 projects is provided in Attachment 1. They have been listed as per the approved budget and show the Schedule Health and Budget Health as key indicators. Projects in the "green" are in good position and moving ahead as expected. Projects in the "yellow" are beginning to show signs of concern and require additional attention. Projects in the "red" require immediate attention or have been deferred to future year based on the concern identified. Projects that are "black" are complete.
Based on the current status of our projects, Engineering Services has identified additional capacity within our internal construction forces to recommend adding a project, subject to Council's approval. Engineering Services recommends that an additional subdivision overlay within Eden Park Estates be added to the 2015 program. This project has an estimated cost of $225,000. Eden Park Estates is the next subdivision preservation project as identified within our asset management inventory and is a project that is best suited to the internal resources that will be available. No new funding is required. Funding will be redistributed from existing projects that are under budget, as identified in Attachment 2.
We have one project that is over budget and a reallocation of MSI funding within the 2015 Budget is required. Parkland Drive, between Range Road 21 and Highway 770, is projected to be $500,000 over spent and an adjustment is required. In 2014, this project was funded for $6,997,000 ($6,888,000 MSI and $109,000 Restricted Surplus). With close to 50% of the project complete at the end of 2014, a reduced amount was carried forward into 2015, which has proven to be an insufficient amount to cover remaining costs. A few of the particulars towards the higher costs include the following; additional improvements to the intersection at Range Road 22 and Parkland Drive, additional land acquisitions to facilitate side slopes along the roadway, additional paving of approaches as per land agreements. While we did have some cost savings within the project from reducing the location, length and number of culverts, the overall cost implications were such that additional funding is required. The request is to reallocate $500,000 of MSI funding within the 2015 Engineering Budget to the project for an upset limit of $3,759,727.00 in 2015.
As mentioned previously, the whole of the road program is ahead of schedule and under budget. The 2015-2018 Road program is budgeted at $19,907,661. At year end, Engineering Services expects to be under budget on the whole program with the ability to return the amount of additional MSI funding needed for Parkland Drive, via savings on Rge Rd 274 Campsite Road, Highway 627 to Highway 628 , plus have an additional project completed.
Strategic Plan/Policy/Legal/Staff Implications
Meets the Infrastructure strategy to preserve, maintain and upgrade existing infrastructure to maximize its life expectancy.
Financial Impact:
Cost: No additional funding required
Source of Funding: 2015 Engineering Budget