Report to/Rapport au :
Finance and
Economic Development Committee
Comité
des finances et du développement économique
and Council / et au Conseil
28 February 2012 / le 28
février 2012
Submitted by/Soumis par : Nancy
Schepers, Deputy City Manager/
Directrice municipal adjointe, Planning and Infrastructure/Urbanisme et
infrastructures
Contact Person/Personne ressource : John
Jensen, Director Rail Implementation
Office/Bureau de mise en œuvre du train (613) 580-2424 x 12764john.jensen@ottawa.ca
|
Ref N°:ACS2011-ICS-RIO-0003 |
SUBJECT: OLRT DESIGN IMPROVEMENTS-UPDATE
OBJET: AMÉLIORATIONS À LA CONCEPTION DU TLRO
- MISE À JOUR
REPORT RECOMMENDATIONS
That the Finance and Economic Development Committee
recommend Council:
1.
Receive
the design updates for
Ottawa’s Light Rail Transit Project outlined in this
report.
2.
Approve the
expropriation process for the acquisition of property for the
Rideau Station Alignment and
direct staff to implement the expropriation for such properties pursuant to the “Expropriations Act” (Ontario), as described in this report.
3.
Approve
the “bundling” of the 417-Widening Project with Ottawa’s Light Rail Transit Project as described
in this report; and
a. Direct the Deputy City Manager,
Planning and Infrastructure to negotiate and execute agreements with
Ontario’s Ministry of Transportation to permit the City to undertake and
implement the “bundling” of the projects and the completion of the
417-Widening Project, including the project agreement, as described in this
report;
and
b. Direct
staff to make appropriate amendments to the procurement documents, including the
request for proposals, for Ottawa’s Light Rail Transit Project in order to
undertake and implement the “bundling” and the completion of the 417-Widening Project.
4. Direct
the Deputy City Manager, Planning and Infrastructure, to negotiate and execute
a reciprocal agreement with the Ministry of Transportation relating
to the reciprocal exchange of property interests for the 417-Widening
Project and Ottawa’s Light Rail Transit (OLRT) project and waive the City's
Disposal of Real Property Policy, set out in By-law 2002-38, in respect of the
sale of land at fair market value and to authorize the Director of Real Estate
Partnership and Development Office to complete such disposals and acquisitions.
RECOMMANDATIONS
DU RAPPORT
Que
le Comité des finances et du développement économique :
1.
Prenne connaissance, aux fins d’information, des
modifications apportées au projet du train léger sur rail d’Ottawa (TLRO)
décrites dans le présent rapport.
2.
Approuve le processus d’expropriation pour
l’acquisition de propriétés pour la zone
du tracé de la station Rideau et qu’il demande au personnel de commencer
le processus d’expropriation pour les propriétés visées, conformément à la
« Loi sur l’expropriation » (Ontario),
comme il est décrit dans le présent rapport.
3.
Approuve le regroupement du projet d’élargissement de
la 417 avec celui du projet de train léger sur rail d’Ottawa comme il est
décrit dans le présent rapport, et :
a.
demander à la directrice municipale adjointe,
Urbanisme et Infrastructure, de négocier et de conclure des ententes avec le
ministère des Transports de l’Ontario afin que la Ville soit autorisée à
entreprendre et à mettre en œuvre le regroupement des travaux et la réalisation
du projet d’élargissement de la 417, y compris l’entente de partage des coûts,
comme il est décrit dans le présent rapport;
b.
demander au personnel d’apporter les modifications
appropriées aux documents d’approvisionnement, notamment la demande de
propositions, du projet de train léger sur rail d’Ottawa, afin d’entreprendre
et de mettre en œuvre le regroupement et l’exécution du projet d’élargissement
de la 417.
4.
Demande à la directrice municipale adjointe, Urbanisme
et Infrastructure, de négocier et de conclure une entente réciproque avec le
ministère des Transports de l’Ontario relativement à l’échange réciproque de
droits de propriété pour le projet d’élargissement de la 417 et le projet de
train léger sur rail d’Ottawa afin de déroger aux exigences de la politique sur
l’aliénation et la vente de propriété, établie par le règlement 2002-38,
relativement à la vente de terrains à la juste valeur du marché et d’autoriser
le directeur du Bureau des partenariats et du développement en immobilier de
procéder à ces aliénations et acquisitions.
EXECUTIVE SUMMARY
This
report provides an update on some design improvements on Ottawa’s Light Rail
Transit (OLRT) project and seeks approval to advance the bundling of the
Highway 417-Widening project with the OLRT project.
The
following provides an update on some of the design modifications that have been
undertaken to improve the OLRT project. Design refinements will continue
throughout the procurement process and a final design will be presented to
Council for approval at contract award in December 2012.
Rideau Station Alignment
As directed by Council,
work has advanced to meet Council’s objective of minimizing the depth, and
expanding the catchment area of Rideau
Station. This work included a focused engineering review of the Rideau Station area of the tunnel alignment. This review
determined it was feasible to shift Rideau Station’s
location from under the Rideau Canal to east of
Moving the station
eastward on Rideau Street will also give
access to the ByWard Market, reduce the depth of the
station, and increase the station catchment area. It will also provide a better transit solution by
balancing the ridership at the station entrances and
by providing entrances closer to transit riders’ origins and destinations.
Other Design Updates
This report also provides
updates on design improvements at Train and Bayview
stations and on the alignment at the West Portal, where the line enters the
Escarpment.
Design changes will
continue to occur throughout the procurement process as the private sector
teams competing to construct the system are responsible for advancing and
completing the preliminary or indicative designs previously presented to
Council. Council will have ultimate approval of the design prior to contract
award in December 2012. This approval will occur after Infrastructure Ontario has
led the evaluation of the three submissions, the selection of the Preferred
Proponent and the negotiation of a final agreement. Each Proponent team has
full flexibility to propose the best design and construction plan/schedule on
which they can guarantee delivery and price. This flexibility is the foundation
of the Alternative Financing and Procurement (AFP) delivery model.
Highway 417 Bundling
To
eliminate the risk of costly delay, mitigate transit disruption and to maximize
innovation, the City has requested that the Province of Ontario consider
bundling the Ministry of Transportation’s (MTO) Highway 417-Widening project
together with Ottawa’s Light Rail Transit project. With the support of
Infrastructure Ontario, the City proposed undertaking these projects together
with a single competition and single responsible private sector team charged
with constructing both projects on a common schedule. This would allow the
selected Proponent full control of both project schedules and consequently
allow the City to hold a single party responsible for performance. The Province
supports the proposed bundling approach. This report seeks Council authority
for the Deputy City Manager, Planning and Infrastructure to negotiate and enter
into an appropriate agreement with the Ministry of Transportation Ontario (MTO)
on the City’s behalf to bundle the Highway 417-widening project with Ottawa’s
Light Rail Transit Project, as described in this report and to direct staff to
make appropriate amendments to the OLRT project procurement documents.
RÉSUMÉ
Ce rapport présente
quelques-unes des améliorations conceptuelles apportées au projet de transport
en commun par train léger sur rail d’Ottawa (TLRO) et sollicite l’autorisation
de procéder au regroupement du projet d’élargissement de l’autoroute 417 à
celui du TLRO.
Mise à jour sur l’avant-projet
Voici une mise au point
sur certaines des améliorations conceptuelles qui ont été entreprises pour
améliorer le projet de TLRO. Le perfectionnement du concept se poursuivra tout au
long du processus d’approvisionnement et un concept définitif sera présenté au
Conseil pour approbation au moment de l’octroi du contrat en décembre 2012.
Tracé de la station Rideau
Comme demandé par le
Conseil, les travaux progressent pour atteindre l’objectif du Conseil de
réduire autant que possible la profondeur de la station Rideau et d’étendre son
aire de drainage. Ces travaux ont comporté notamment un examen technique ciblé
du tracé du tunnel dans le secteur de la station Rideau. Cet examen a permis de
déterminer la faisabilité du déplacement de la station Rideau, dont
l’emplacement était d’abord prévu sous le canal Rideau, à l’est de la promenade
Sussex. Ce changement donne aux proposants une plus grande flexibilité dans
leur démarche pour optimiser l’emplacement de la station et de ses entrées et
pour déterminer les méthodes de construction de manière à respecter le budget
du projet.
Le déplacement de la
station à l’est sur la rue Rideau permettra également d’accéder au marché By,
de réduire la profondeur de la station et d’accroître l’aire de drainage de la
station. Ce sera aussi une meilleure solution de
transport en commun en équilibrant l’achalandage aux diverses entrées de la
station et en plaçant les entrées plus près des lieux d’origine et des
destinations des usagers.
Autres modifications conceptuelles
Ce rapport présente aussi
les améliorations conceptuelles apportées aux stations Train et Bayview et dans le tracé du portail ouest, là où la ligne
pénètre dans l’escarpement.
Des modifications
conceptuelles continueront d’être apportées tout au long du processus
d’approvisionnement étant donné que les équipes du secteur privé qui se font
concurrence pour l’obtention du contrat de construction du réseau doivent
perfectionner et achever les avant-projets sommaires ou indicatifs présentés
antérieurement au Conseil. Il reviendra au Conseil d’approuver la conception
définitive avant l’attribution du contrat en décembre 2012. Cette approbation
sera donnée une fois qu’Infrastructure Ontario aura procédé à l’évaluation des
trois soumissions, à la sélection du proposant préféré et à la négociation du
contrat définitif. Chacune des équipes a toute la flexibilité requise pour
proposer la meilleure conception et le meilleur plan/calendrier de construction
en vertu desquels elles pourront garantir la livraison et le prix. La
flexibilité est à la base même du modèle de prestation fondée sur d’autres
méthodes de financement et d’approvisionnement.
Regroupement avec le projet d’élargissement de l’autoroute 417
Pour éliminer les risques associés à
des retards dispendieux et à des interruptions du service de transport en
commun et pour maximiser la capacité d’innovation, la Ville a demandé à la
Province de considérer la possibilité de regrouper le projet d’élargissement de
l’autoroute 417 du MTO avec le projet de transport en commun par train
léger sur rail d’Ottawa. Avec l’appui d’Infrastructure Ontario, la Ville a
proposé de mener ces deux projets ensemble dans le cadre d’un concours unique
et avec une seule équipe du secteur privé responsable qui sera chargée de la
construction des deux projets suivant un calendrier de réalisation commun.
Ainsi, le proposant choisi aura la maîtrise complète du calendrier des deux
projets et la Ville pourrait tenir une seule partie responsable des résultats.
La Province est en faveur de cette proposition de regroupement. Ce rapport a
pour objet de demander au Conseil d’autoriser la directrice municipale
adjointe, Urbanisme et Infrastructure, à négocier et à conclure, au nom de la
Ville, une entente appropriée avec le ministère des Transports de l’Ontario
(MTO) dans le but de regrouper le projet d’élargissement de
l’autoroute 417 avec le projet de transport en commun par train léger sur
rail d’Ottawa, comme il est décrit dans le présent rapport et de demander au
personnel d’apporter les améliorations appropriées aux documents
d’approvisionnement du projet de TLRO.
BACKGROUND
In January 2010, Council
approved the Downtown Ottawa Transit
Tunnel (DOTT) Planning and Environmental Assessment Study – Recommended Plan (ACS2009-ICS-PGM-0214), providing authority to commence the
Environmental Assessment process, Preliminary Engineering activities and the
property acquisition process for Ottawa’s Light Rail Transit (OLRT) project.
The cost estimate to complete the project in 2009 dollars was established at
$2.1 billion.
The Federal and Provincial
governments confirmed, in August 2010 and September 2010 respectively, that
they would each provide up to $600 million toward the OLRT project. A formal
contribution agreement was completed with the Province in September, 2011 and
the Federal contribution agreement is forthcoming. Since September 2010, the
City has undertaken a comprehensive preliminary engineering program to confirm
overall project feasibility, refine the proposed construction schedule, develop
a more detailed capital budget and create the preliminary indicative designs
for the OLRT project.
In May 2011, Council
approved the “OLRT Schedule Acceleration
and Procurement Option Selection” report (ACS2011-ICS-RIO-0001). This report accelerated
the implementation of the OLRT project by one full year and gave authority to
use an Alternative Financing and Procurement (AFP) approach to
construct the project.
In July 2011, Council approved the “Implementation of the Ottawa Light Rail Transit
(OLRT) Project” report (ACS2011-ICS-RIO-0002). This report directed staff to implement the OLRT
project using a Design Build Finance Maintain (DBFM) procurement model. In this
report Council also directed staff to engage Infrastructure
The successful Proponent
will be required to provide up to $400 million of long term financing, ensuring
they are at risk for any failure to achieve the desired schedule and system
performance. The private sector teams competing to construct the system will be
responsible for advancing and completing the indicative designs presented to
Council. Council will have ultimate approval of the design at contract award in
December 2012.
Each team will have full
flexibility to propose the best design and construction plan/schedule upon
which they can guarantee delivery and price. This private sector competition
will drive better value while ensuring integration of all elements into a
reliable and efficient system. Given that each team will apply its own unique
expertise, the preferred design brought to Council for approval will reflect an
overall design approach that will vary from the indicative designs prepared
during preliminary engineering.
In addition to the
procurement elements of the July 2011 report, Council also approved a modified
project design that eliminated the previously approved cross-country alignment,
replacing it with a tunnel and station configuration along Queen Street. This
modification allowed the project to remain within the $2.1 billion dollar
project budget including inflation. In real terms this was an overall budget
reduction of more than $440 million from the original estimate as the new
budget absorbed the effect of the 3.2% construction inflation that was not
included in the original $2.1 billion estimated cost.
In
October 2011, the competitive Request for Qualification for the OLRT project
resulted in a shortlist of three private sector teams. Subsequently, the
Request for Proposal document was released to the shortlisted
teams with final proposals due from each team in July 2012. Infrastructure
Ontario will lead the evaluation of these proposals before the recommendation
of a winning Proponent, with their contract and design, for Council approval in
December of 2012. Construction is expected to commence in early 2013.
DISCUSSION
A. DESIGN IMPROVEMENTS
Early last year the Mayor
and Council set clear expectations for the development of a financially
sustainable plan for public transit. Input from Council and public delegations during
consideration of the July 2011 report has been incorporated into ongoing work
to improve functionality, lower costs and further reduce risks.
This report provides Council with a project update
on some of the design improvements that have been incorporated into the OLRT
project to date. Design refinements will continue throughout the procurement
process.
Rideau Station Alignment
In July 2011, Council approved a modified tunnel alignment which reduced
the depth of a significant portion of the tunnel from approximately 40 metres
to 16 meters, and the proposed depth of the Rideau
Station from 38 metres to 29 metres. However, during Council deliberations on
the modified alignment and in stakeholder meetings, two further improvements
were suggested:
·
Depth of Station – Council urged staff to examine the eastern section of the tunnel
alignment to see if there were possibilities to further reduce Rideau Station depth;
·
Station Catchment – Concerns were expressed
that the location of the Rideau Station was too close
to the Downtown East Station and would not provide optimal service to the ByWard Market area.
Following Council direction to examine options for reducing
the depth of Rideau Station and review its placement,
staff undertook a focused engineering review on this tunnel section. Work was done to review utilities, ground
conditions, possible means and methods of construction as well as station
placement. Proponents were advised at
the outset of the process that a potential alternate alignment at Rideau Station was being evaluated and were invited to
provide feedback.
Originally, the Rideau Station platform was
located west of Sussex Drive under the Rideau Canal
which forced the tunnel placement deeper. The station was required to provide
clearance for two large adjacent sewer pipes on either side of the Canal.
Further examination of the expected passenger flows through entrances located
in the Rideau Centre and adjacent to the National
Arts Centre demonstrated relatively few
riders would access the system through the west end entrance. As such, the
significant cost of providing this entrance did not provide appreciable ridership benefit on an ongoing basis.
Innovation Zone and Property Acquisition Strategy
In order to maximize flexibility and innovation to
best achieve the goals outlined in the section above, the proponents will be
given the opportunity to optimize their proposals by designing their proposed
tunnel and station within the boundaries of a horizontally and vertically
defined innovation zone (Figures 1 & 2 the “Innovation Zone”). Only one station entrance will be prescribed,
on the south side of Rideau Street into the future Rideau Centre expansion. An
underground walkway connecting entrances on the north and south sides of Rideau
Street will also be required facilitate pedestrian connection to the By-ward
Market. The proponents have the flexibility to choose two more entrance
locations and the location of a knock out panel for a fourth station access.
They will be required to demonstrate the entrances are well balanced, from a
ridership perspective, and that their configuration will provide easy and
efficient access to and from the LRT platform.
The feasibility of this public project is supported
by retaining design flexibility within the Innovation Zone until the preferred
proponent is selected in Fall 2012 and until the final
detailed design of the tunnel section and stations to be constructed within the
Innovation Zone is identified. As a result, the scope of the proposed
expropriation, though limited by the boundaries of the Innovation Zone, is
necessarily greater than the area which will ultimately be occupied by the
public works themselves. The subterranean interest to be acquired and the
structures themselves will be located at a depth that will not substantially
interfere with existing uses irrespective of their final location within the
Innovation Zone. It is therefore fair, sound and reasonably necessary to
include this flexibility in the first Notice to owners whose property is
located within the Innovation Zone.
When the first expropriation Notices are issued
with respect to the Innovation Zone, detailed sketches will be provided to
property owners illustrating the vertical and lateral limits of the Innovation
Zone in relation to the affected property.
Once the preferred proponent is selected in Fall 2012, and following identification of the final
detailed design of the tunnel section and stations to be constructed within the
Innovation Zone, the City will refine its property requirements and proceed
with expropriation of only those subterranean interests within the Innovation
Zone that are specifically required to support the selected design.
Additional Property Acquisitions Required for the
Rideau Station Alignment:
As the design process evolves, the City may
identify additional property interests which must be expropriated in order to
support the Rideau Station Alignment including property required for station
entrances. Prior to serving Notices of intent to expropriate such interests,
detailed sketches will be provided to the affected property owners illustrating
the boundaries of the affected property.
Figure 1: Innovation Zone
(Horizontal)
Figure 2: Innovation Zone
(Vertical)
Benefits
By moving Rideau Station out from underneath the canal it will be
possible to further reduce the depth of the alignment at that location. The
goal of reducing the depth of Rideau Station was
highlighted by both Council and public delegations during the July 2011
deliberations. The new station entrances will be closer to travel
origin/destinations and will service a greater ridership
catchment than the original location – both in the
short and long term.
The improved Rideau Station location will provide better bus
connectivity. It will also be positioned where existing bus operations focus
their transfers between the Société de transport de l'Outaouais (STO) and the OC Transpo
transit systems.
Figure 3: Improved Catchment
The
flexibility given to Proponents within the innovation zone will assist them in
maintaining the budget envelope provided by Council. The Rideau Station
location will allow for a direct tie-in with the highest foot traffic area
between the ByWard Market and the Rideau
Centre. The opportunity to create an underground transit concourse will enable
the potential removal of the overhead walkways on Rideau
Street at some point in the future.
Rideau Station will now provide near complete coverage of
the Central Area, placing the majority of it within a 600 m
radius from at least one station, as designated in the Official Plan. The new Rideau Station entrances provide full coverage of the ByWard Market and bring Sandy Hill West and a majority of Lowertown West within the 600 m
standard along the revised alignment.
The relocation of Rideau Station supports and
reinforces the policies in Section 3.6.6, Central Area, in the Official Plan
including:
3.
The City will promote the Central Area as
a vital and active place by:
a)
Encouraging a range of day/night and year-round activities through such means
as extended transit service, and supporting the staging and creation of
cultural facilities, festivals, theatre, music, public art, commemorations and
other activities and special events.
8.
To give walking, cycling and public
transit priority in the Central Area:
b) The Transportation Master Plan will include
provisions for a transportation system that reduces the use of automobiles and
encourages the use of walking, cycling and public transit as the principal
means of access to and mobility within the Central Area, particularly between
east and west of the Canal.
In addition, this direction is consistent with the
recently received Sustainability and Resilience Plan and Term of Council
Priorities on active mobility.
The revised location of
the Rideau Station will reduce operating and
maintenance costs associated with the ridership
circulation into and out of the Rideau Station.
B. ADDITIONAL DESIGN
REFINEMENT
Train Station
The National
Capital Commission has required that the location of Train Station be shifted
to the west. As a result it will no longer be in the centre of the D shaped
entrance/exit road leading from Tremblay Road to/from the Via Rail train
station. This shift will allow for a shorter walk to access the Via Rail
station while also providing a better connection to the proposed pedestrian
bridge to the baseball stadium. The design of the Coventry Road pedestrian
bridge has been adjusted to facilitate a better connection to this station by
continuing the bridge across Tremblay Road and bringing it to grade in this
same quadrant.
Figure 4: Train Station Modification 
Figure 5:
Train Station Pedestrian Connections
Bayview Station
The improved Bayview
Station location has shifted west to be located above the O-Train station. This
location provides a better and more convenient connection to the O-Train, which
will improve the overall user experience by enhancing connectivity throughout
the transit system. The new location will also provide better pedestrian and
cycling connections for residents in Mechanicsville and Hintonburg
to the southwest and Dalhousie to the southeast. The
ability to provide a future connection so that North-South trains can continue
into downtown is protected in this new configuration. The ability to continue
north for a possible interprovincial connection is
also protected with these station refinements.
Figure 6: Bayview Station Shift
Figure 7: Bayview Pedestrian Connections
Alignment at West Portal (Escarpment)
The west tunnel portal (entry point) is now
located west of Commissioner Street. This will safeguard the physical
integrity of the escarpment, a protected natural feature under the Cathedral
Hill Heritage Conservation District. It will also allow Commissioner
Street to temporarily remain open and continue to function as a secondary
access point to the parliamentary and judicial precinct and the Cliff Street
Heating and Cooling Plant as required by the Federal Government.
Figure 8:
Updated Escarpment Alignment
Immediate Project Advancement
As outlined in the July
2011 OLRT Implementation report, the project designs presented to Council and
the public up to now are indicative preliminary designs, available to
Proponents as they develop their more detailed plans. The three shortlisted Proponent teams will complete the designs with
maximum freedom to innovate and optimize as they attempt to deliver the best
system for the lowest cost. This freedom
to innovate and optimize is the foundation of the Alternative Financing and
Procurement delivery model.
As each team will be
required to stand by their designs through financing, and submit a fixed-price
through a 30-year maintenance obligation, each team will also need to work to
ensure proper integration, function and durability over the long-term. Further,
the teams are required to consider the federal approvals process for stations
located on federal lands. As a result, aspects of the stations and system
proposed by various teams will vary from the baseline presented to Council as
teams use their own techniques, innovations and strategies to deliver the best
overall value to the City.
The Proponents will submit
their designs, cost, and construction schedule in July 2012 as part of their
respective proposals. Staff from the Rail Implementation Office and Capital
Transit Partners, with assistance from Infrastructure Ontario, will evaluate
these submissions to ensure technical compliance with the operational and
design requirements as set out in the Request for Proposal documents.
Once the evaluation is
complete, final negotiations will then be conducted by Infrastructure Ontario,
City staff and their expert advisors with the Preferred Proponent to ensure the
City obtains the best value/cost for the design submitted. The referred
Proponent’s contract and their design will then be presented to Council for
approval in December 2012.
Over the next four months,
the City’s project team will also be undertaking additional field work to
further enhance the geotechnical and hydrogeological data available to Proponents. This will
mean additional drilling of boreholes mainly along the tunnel alignment and
establishing monitoring wells.
Other than the
expropriations in the Rideau Street Alignment
innovation zone, for which approval is currently being sought in this report,
the expropriation process will continue to move forward as previously
authorized by Council.
C. BUNDLING OF THE HIGHWAY 417 AND OLRT PROJECTS
In June 2011, the Provincial government announced it
would fund the widening of Highway 417 from Ottawa Road 174 to the Nicholas
Street exit. The City of Ottawa had requested this project be fast-tracked to
enable an alternate transit route during the construction of the OLRT project.
The newly constructed lanes will be used to carry bus traffic during conversion
of the Transitway from Bus Rapid Transit to Light
Rail Transit. The proposed schedule for the 417- widening Project would see construction begin in the Fall of 2012
and completed in the Fall of
2015. The Ministry of Transportation has nearly completed the design work for a
traditional design build approach to completing the project.
In order to provide an alternative
corridor for rapid bus transit, the construction schedule for the conversion of
the Transitway is highly interdependent on the
successful completion of the widening of this section of the 417-Widening. Any
delay in construction would result in either a costly delay in OLRT project
construction and implementation, or an unacceptably compromised bus transit
service for east Ottawa.
Even if completed on
schedule, it is important to recognize that the amount of innovation the three shortlisted OLRT Proponents can bring to the 417-Widening Project is limited by
the fact that the highway must be widened first and that the date of completion
for that widening is beyond their control. This limitation eliminates a
significant opportunity to reduce costs and total project schedule. The
Infrastructure Ontario AFP procurement method works best when the private
sector is given maximum flexibility in project design and schedule. Proponents
have a strong incentive to reduce the total construction period as it lowers the
cost of the construction financing they must provide.
To mitigate the risk of costly delay, reduce transit disruption and to allow
private sector innovation, the City requested that the Province consider
bundling the 417-Widening Project
together with the OLRT project.
With the support of Infrastructure Ontario, the City proposed undertaking these
projects together with a single competition and single responsible private
sector team charged with building both works on a common schedule. This would
afford the selected Proponent full control of both project schedules and
consequently allow the City to hold a single party responsible for performance.
The Province supports the proposed bundling approach. The Province will allocate the appropriate funding
for the 417-Widening Project to
the City but will be responsible for
all design works related to the 417-Widening Project.
Certain enabling works will be advanced and completed during
the 2012 construction season. For example, construction of columns in the Rideau River to support the widened bridge will be advanced
to summer/fall of this year so that seasonal dependent work is completed in
advance of contract award.
Similarly, advance works for the Coventry Bridge may be delivered in 2012 to
ensure seamless integration with the 417-Widening Project works.
The City and the Ministry of
Transportation (MTO) anticipate
entering into a project agreement outlining their respective rights and
responsibilities for the 417-Widening Project. As well, the City and MTO
anticipate entering into a reciprocal agreement that would permit the
transfer of property rights between the parties at a nominal cost.
In connection with the
reciprocal agreement, MTO has identified various City-owned properties that
will be required beginning in 2012 on a temporary basis for bridge construction
and staging purposes. The MTO has requested a nominal payment for these
property rights. The final alignments
and designs for the OLRT project
have not been completed. As a result, the City has yet to identify its property
requirements from the MTO. Once
the property rights are known, the MTO will reciprocate.
To facilitate the reciprocal
transfer, staff are requesting that Council waive the City's Disposal of Real Property Policy, set out in By-law 2002-38, in respect
of the sale of land at fair market
value and authorize the Director
of the Real Estate Partnership and
Development Office to complete such disposals and acquisitions.
RURAL
IMPLICATIONS
N/A
CONSULTATION
Staff will be hosting a Public Open House that
will include these updated designs this Spring.
COMMENTS
BY THE WARD COUNCILLOR(S)
N/A
LEGAL/RISK
MANAGEMENT IMPLICATIONS
(i)
417
Project Legal Agreements
·
the City’s ability and authority to
“bundle” requires that there be completed legal agreements;
·
the final terms and conditions of the
“bundling” are the subject of on-going negotiations and will be as set out in
the legal agreements; and
·
the respective rights and obligations of
the City and the Province in respect of “bundling” are the subject of on-going
negotiations and will be as set out in the legal agreements.
(ii)
Innovation Zone-Property Acquisitions Strategy
Commencing expropriation proceedings
for subterranean property interests located within the Innovation Zone may give
rise to compensation claims from affected owners.
FINANCIAL
IMPLICATIONS
Costs associated with implementing the
land acquisition recommendations of this report have been provided for in the
capital budget and long range financial plan for Transit.
Capital costs for widening the Highway
417 will be fully recovered from the Province of Ontario. As discussed in
the report, this bundling is expected to result in schedule certainty and
innovation.
TECHNOLOGY
IMPLICATIONS
There are no
technology implications associated with this report.
CITY
STRATEGIC PLAN
The recommendations contained herein directly and indirectly
support the following objectives of the Corporate Planning Framework:
EP1 Promote
Ottawa globally
EP3 Support
growth of local economy
TM1 Ensure
sustainable transit services
TM2 Maximize
density in and around transit stations
TM3 Provide
infrastructure to support mobility choices
TM4 Promote
alternative mobility choices
ES3 Reduce
environmental impact
HC1 Achieve
equity and inclusion for an aging and diverse population
SE2 Improve
operational performance
GP1 Improve
the public’s confidence in and satisfaction with the way Council works
GP3 Make
sustainable choices
FS1 Align
strategic priorities to Council’s tax and user fee targets
FS2 Maintain
and enhance the City’s financial position
SUPPORTING
DOCUMENTATION
PowerPoint
Presentation – English
/ French
Following
Committee and Council approval of the recommendations contained herein, the
Rail Implementation office and the Deputy City Manager, Planning and
Infrastructure will undertake the following:
1)
Advance the “bundling” of the 417-Widening and
OLRT projects as outlined in the report; and
2)
Begin the expropriation process for the
acquisition of property for the Rideau Station
Alignment as outlined in the report.