April 8, 1998

To:Strategic Policies and Priorities Committee

 From:City Clerk

 Subject:1998 Interim Capital Budget - Capital Projects Requiring Urgent Financing Approval

  Recommendation:

 The Budget Committee on April 3, 1998 recommended to the Strategic Policies and Priorities Committee, and Council, that interim funding for the City-wide Watermain Relining and Replacement Projects in the amount of $6,950,000.00 be approved and considered by Council at its next meeting scheduled for April 16, 1998.

 Background:

 The Budget Committee on April 3, 1998, had before it a report (February 17, 1998) from the Chief Financial Officer and Treasurer regarding the 1998 Interim Capital Projects Requiring Urgent Financing Approval.

    City Clerk

 Barbara Liddiard/rc/cp

 Attachment

 c:Chief Administrative Officer

Chief Financial Officer and Treasurer

Mr. Michael G. Thorne, Interim Functional Lead

Waste and Wastewater

(Report dated February 17, 1998 addressed to the

Budget Committee from the Chief Financial Officer)

 Purpose:

 This report provides a complete list of city-wide watermain relining and replacement proposed for 1998.

 Funding Sources, Financial Implications and Impact Statement:

 The projects proposed for 1998 have been included in the water rate supported programs for 1998 and will be financed from existing capital reserves.

 Recommendations:

 That Appendix AB@ Project 35 - Watermain Capital Maintenance of $6,950,000.00 be approved.

 Council Reference/Background/History:

 At the Budget Committee meeting of January 26, 1998, the Committee had before it a report from the Chief Financial Officer and Treasurer outlining those capital projects that require early financing approval. The Budget Committee referred Project 35 - Watermain Capital Maintenance back for a report setting out the complete list of watermain relining projects on a city-wide basis.

 Attached is the 1998 Program for Watermain Cleaning and Lining in each of the former Area Municipalities as requested. The early funding requested represents approximately forty percent of the 1998 program of $17,721,000.00.

 The early funding is to allow contracts for watermain lining rehabilitation to be called in Etobicoke, North York, York, Toronto, and Scarborough. These contracts need to be awarded in April so the unsuccessful contractors can bid on the remaining rehabilitation contracts for all six districts in May, in order that the program can be completed by November.

 The watermain rehabilitation program and the method of calling contracts will be reviewed when the condition of the infrastructure is known on a city-wide basis. However, for 1998, it is intended to carry out the watermain rehabilitation program in accordance with the programs put forward by each of the former Area Municipalities unless changes are requested through the budget process.

 The early funding requested represents approximately forty percent of the 1998 program of $17,721,000.00.

 Conclusions:

 Funding is required to allow the early award of contracts to ensure the tendering is done strategically to obtain optimal pricing and allow the program outlined to be completed during the construction season.

 Contact Name:

 Michael G. Thorne, P.Eng.

Interim Functional Lead

Water and Wastewater

Tel. (416) 392-8200

Wanda Liczyk

Chief Financial Officer and Treasurer