ADMINISTRATIVE REPORT

Date: September 4, 2002
Author/Local: C.Edwards/6422

RTS NO. 02950

CC File Nos. 8203/1203

Council: September 10, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	False Creek Flats - Upgrades to Sewerage Infrastructure

RECOMMENDATION

THAT Council authorize the Director of Legal Services to enter into an agreement with the Canadian National Railway Company (CN) for the construction of a new sanitary force main and upgrades to an existing sanitary pump station at a cost of $527,395 plus a $50,000 contingency fund for changes as approved by the General Manager of Engineering Services plus GST.

COUNCIL POLICY

In May 2002 Council approved the funding for sewer infrastructure projects in the False Creek Flats.

In March 2001, Council approved the False Creek Flats Structure Plan to support development in the False Creek Flats.

PURPOSE

The purpose of this report is to seek Council approval to enter into an agreement with Canadian National Railway (CN) for the construction of a new sanitary force main and upgrades to an existing pump station using funding approved by Council in May 2002. Contracting with CN will allow the City to realize cost savings of having the new City infrastructure built at the same time, and in the same location, that CN builds the new roads for their subdivision. Although this sewer infrastructure is not required under the existing agreement with CN for servicing their subdivision, it is required in order to meet the needs of development in other areas of the False Creek Flats.

BACKGROUND

In July 2001, CN subdivided their main rail yard in order to provide 4 large development parcels on Terminal Avenue in the I-2 and I-3 zoned areas. The layout of this new subdivision, including the new roads, was informed by the False Creek Flats Structure Plan, approved by Council earlier in 2001.

As a condition of this subdivision, CN was required to enter into a Services Agreement to provide servicing for the new lots. This servicing includes, among other things, the design and construction of new roads and underground water and sewer mains. The agreement further defines the relationship between the City and CN and the practices they must follow in order to deliver an acceptable finished product to the City.

In addition to the services, the development will also be required to pay Developments Cost Levies (DCL's) in order to fund area wide upgrades to infrastructure. The infrastructure upgrades are necessary as the area is currently under-serviced for the needs of the emerging developments. One type of infrastructure in need of upgrading is the sewer system.

In May 2002 Engineering reported to Council and received funding for several area wide upgrades to the sewer system. One major component of the upgrades is a new sanitary sewer force main between the Terminal Central and Thornton Park pump stations. As a component of the new force main, upgrades will also be required at the Terminal Central pump station in order to accommodate the new force main. This upgrade will increase the capacity of the sewer system in order to service a large area of the False Creek Flats.

DISCUSSION

CN is currently in the process of designing and constructing services that are required for their subdivision, under the existing Services Agreement. Of the new services, CN is building 4 new north-south roads and one lane.

In analyzing a route for the new force main, it was determined that it would be most cost effective to build the force main along these new roads. It was further determined that the City could benefit from arranging for CN to build the new force main, along with the associated upgrades to the pump station, at the same time as the new roads. This would save service restoration costs, mobilization costs and avoid scheduling problems with the new developments. Through discussions with CN, they agreed to include the City work as an optional item in the tender documents for their services.

The contract was tendered publicly and CN received the following prices for the work:

	Imperial	Bel Contracting	Aggressive Roadbuilders	Southwest Contracting	Jack Cewe
Force Main	$208,850	$220,640	$233,900	$398,700	$436,190
Terminal Central pump station upgrades	$239,545	$308,300	$240,000	$281,800	$308,285
TOTAL	$498,395	$578,940	$523,900	$730,500	$794,475

As a result of the tender prices, and in consultation with the City, CN chose to contract with Imperial. Further consultation was held in order to negotiate a price for the engineering design, inspection and certification (professional services) of the force main and pump station upgrades. This work would be done by the consultant team that CN already has in place for their subdivision services. Due to the complexity of the work and the services provided to inspect and certify the work, it was determined that $79,000 represented the maximum price which the City could be charged for the professional services. The actual price will be based on invoices as submitted by CN and approved by the General Manager of Engineering Services.

FINANCIAL IMPLICATIONS

The total cost of the construction is $448,395, plus up to $50,000 to be used as a contingency fund, plus $79,000 for engineering design, inspection and certification. Both the contingency fund and the cost for the professional services are maximum amounts and the actual amount that the City pays will be based on invoices approved by the General Manager of Engineering Services. A budget for this work was approved in a May 2002 report to Council regarding area wide sewer upgrades for the False Creek Flats. The General Manager of Engineering Services is satisfied that this amount represents good value for the City.

CONCLUSIONS

This report seeks Council approval to enter into an agreement with CN to construct a force main and upgrades to the Terminal Central pump station. The timing of this agreement will take advantage of the cost savings due to the fact that CN is already on site constructing various other services. Subject to Council approval, the final agreement will be executed subject to terms and conditions acceptable to the Director of Legal Services at a maximum price of $577,395 plus GST.

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