STAFF REPORT

November 18, 1999

To: Works Committee

From: Barry H. Gutteridge, Commissioner of Works and Emergency Services

Subject: Provision of Services to Toronto Hydro

Purpose:

The purpose of this report is to obtain approval to provide survey and mapping services to Toronto Hydro.

Financial Implications and Impact Statement:

The costs of providing the services to Toronto Hydro will be fully offset by revenues accruing to the City, with no financial impact on the City.

Recommendations:

It is recommended that:

(1) the Commissioner of Works and Emergency Services be authorized to continue to provide survey and mapping services to Toronto Hydro and to manage consultants as necessary to complete this work; and

(2) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto including entering into any agreements required and the introduction of the necessary by-law.

Background:

The former municipalities provided survey, mapping and geographic information services to the former local hydro utilities and undertook joint mapping projects with utility companies under various arrangements. In some cases, survey services in the former municipalities were provided on a cost recovery basis to the local Hydro utility. In other instances where the work was minor and infrequent, the services were provided at no charge to the local hydro utility.

Comments:

The amalgamation of the former municiaplities has presented the City with some opportunities to reduce costs and improve productivity by providing survey and mapping services to Toronto Hydro.

Section 207 para. 23 of the Municipal Act authorizes Council, by by-law, to enter into agreements that provide for the use of City staff and equipment by third parties and for fixing the terms, conditions and charges for same.

Services to Toronto Hydro:

The City has developed considerable experience in managing its notice of claim registration program. This program was initiated several years ago as a result of changes to the Registry Act, which necessitated notices of claim to be registered before the expiry of the statutory limitation period in order to protect existing easements.

The initial phase of the Works and Emergency Services program is proceeding according to schedule and will be finished by the end of the year. The next phase of the program, which will involve surveying and acquiring easements for existing sewer water mains over land where no valid easement exists, will start in 2000.

As a result of our flexibility to deploy staff to the next phase of the project at a later date and the demands to reduce costs, we have been assisting Toronto Hydro with its own program to register notices of claim on a cost recovery basis.

The work involves title searching, searching for evidence of a valid claim and preparing the affidavits and documents to be executed by Toronto Hydro's solicitor. The charges for these services are based on salary costs, plus 23% fringe benefits, and an appropriate percentage for overhead and disbursements such as telephones, equipment and rental of premises. The volume of work has reached the stage where the work is being contracted out to private firms and managed by our staff on behalf of Toronto Hydro.

Revenue from Toronto Hydro in 1999 for the recovery of salaries is expected to be in the order of $300,000. Discussions are underway with Toronto Hydro officials to determine if similar arrangements can be made in regard to the provision of surveying services in 2000 and 2001.

The City Solicitor has been consulted in the preparation of this report.

Conclusions:

It would be in the City's best interest to continue and enhance current survey and mapping service delivery arrangements with Toronto Hydro. There will be no cost to the taxpayers, in fact the service delivery arrangements will result in the following benefits to the City:

(a) a reduction in expenditures for salaries of personnel undertaking work for Toronto Hydro; and

(b) improvements in levelling of workloads.

Contact:

W. (Wally) Kowalenko

City Surveyor

Tel. No. 392-7664

Fax. No. 392-0081

E-mail: wkowalen@toronto.ca

Tom G. Denes, P. Eng

Executive Director

Technical Services

Barry H. Gutteridge

Commissioner

Works and Emergency Services

WK/bc

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