Interim Spending Approvals for the 1999 Water
and Wastewater Capital Works Program
The Strategic Policies and Priorities Committee recommends that the recommendations
of the Budget Committee contained in the following communication (December 15, 1998)
from the City Clerk be received:
Recommendation:
The Budget Committee on December 8, 1998, recommended to the Strategic Policies and
Priorities Committee and Council the adoption of the recommendation of the Works and
Utilities Committee with respect to the subject matter.
Background:
The Budget Committee had before it a transmittal letter (December 2, 1998) from the City
Clerk forwarding the recommendation of the Works and Utilities Committee from its meeting
held on December 2, 1998 to adopt the report (November 27, 1998) from the Commissioner
of Works and Emergency Services respecting interim spending approvals for the 1999 Water
and Wastewater Capital Works Program.
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(Transmittal letter dated December 2, 1998 addressed to the
Budget Committee from the
City Clerk)
Recommendation:
The Works and Utilities Committee on December 2, 1998, recommended to the Budget
Committee, the adoption of the report dated November 27, 1998, from the Commissioner of
Works and Emergency Services respecting interim spending approvals for the 1999 Water and
Wastewater Capital Works Program.
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(Report dated November 27, 1998, addressed to the
Works and Utilities Committee from the
Commissioner of Works and Emergency Services)
Purpose:
The report addresses the need for interim spending approval in the first few weeks of 1999 for
those projects that are ongoing and will continue beyond December 31, 1998, as the Capital
Works Program is anticipated to be approved by Council in late January 1999.
Funding Sources, Financial Implications and Impact Statement:
Interim approval of capital expenditures on the projects identified in the recommendations
will pre-approve $12,618,000.00 (after Goods and Services Tax rebate) of the Water and
Wastewater 1999 Capital Budget. The divisional request for spending approval in 1999
amounts to $235,071,000.00. The interim approval represents 5 percent of the 1999 Capital
Budget request.
The approval of the recommendations will not add to the 1999 request but merely give
approval to continue projects in early January.
Staff of the Finance Department have been consulted with regard to the requests contained in
this report.
Recommendations:
It is recommended that:
(1)the Budget Committee be requested to recommend the approval of interim spending
authority, in the amount of $12,618,000.00 for the projects identified in Appendix "A", prior
to the approval of the Water and Wastewater Division's 1999-2003 Capital Works Program;
(2)subject to approval of Recommendation No. (1) above, authority be granted to extend and
amend the existing consulting and engineering services contract with EMA Canada Inc., by an
amount not to exceed $979,203.00 including Goods and Services Tax;
(3)subject to approval of Recommendation No. (1) above, authority be granted to engage the
firms listed in Table 2 of this report, to maximum amounts indicated therein; and
(4)the appropriate City officials be directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
The Water and Wastewater Services Division's 1999-2003 Capital Works Program was
prepared and submitted on the assumption that approvals for 1999 expenditures would be
obtained before the end of 1998 as originally scheduled. With the approval of the capital
budget now deferred to late January 1999, interim spending authority is required to continue
projects in early January.
Comments and/or Discussion and/or Justification:
There are projects underway within the division where funding approval only exists to the end
of 1998, yet the actual work and the project timetable is dependent upon continuing into
January of 1999 with the work program.
As identified in Appendix "A", the applicable projects are as follows:
Biosolids (included in Project No. 160 - Main Treatment Plant - Sludge Utilization):
Council has approved fast tracking the 100 percent beneficial use of biosolids process to
ensure that we cease incineration at the Main Treatment Plant by January 2001. The division
has issued a Request for Proposals (RFP) for the Biosolids Beneficial Use Program, with
submissions to be received on or before December 16, 1998. Respondents' proposals will be
evaluated and it is anticipated that recommendations will be brought to Council in February
1999.
The firm of R.V. Anderson has been retained to assist the City in its move to 100 percent
beneficial use.
In view of the accelerated timing and to ensure adequate funds are available, an expenditure of
$1.5million is required to cover the cost of consulting services, project initiation and to
support the activities of the Council appointed Biosolids Multi-Stakeholder Committee and
the Independent Review Committee.
It should be noted, however, that an amount of $0.3 million has been transferred from the
Biosolids Odour Control Facility and hence, the incremental interim funding request is
lowered to a net amount of $1.2 million.
Taste and Odour Control Facilities (included in Project No. 373 - Plant Process Additions):
The submitted 1999 Capital Works Program identifies a request in the order of $7 million for
plant process additions to address taste and odour control at the four filtration plants. This
funding will provide for a short-term solution for taste and odour control solutions in the
drinking water.
The completion of the project is targeted for the beginning of July, which is one month in
advance of the time when taste and odour problems are expected to develop. In order to meet
this time frame, it is necessary for us to prepare and issue tenders for the work at the four
filtration plants, commencing as early as possible in 1999.
We are requesting, therefore, interim funding approval in the amount of $0.40 million in order
to commence work in early January 1999.
District Operation and Maintenance Contracts:
There are several sewer and water projects at the District Level where an early tender and
award in January will ensure competitive rates as well as an early start on the projects. Some
of the work can be carried out in the winter months, and therefore the contractors bid low to
ensure their resources are utilized as much as possible in the winter. The projects are
identified in Appendix "A".
Works Best Practices Program:
The original Phase 1 of the Works Best Practices Program (WBPP) was planned to end in
October 1998. However, due to amalgamation of the new City and protracted discussions with
the Union, Local 416, the program's implementation schedule was significantly impacted. As
a result, the implementation plan was revised several times over the past few months. Work is
now proceeding to finalize a formal Terms of Reference for Phase 2 consulting and
implementation requirements, with the intent of issuing an RFP in December of 1998. It is
anticipated that the resulting contract award would be finalized by mid-March 1999.
The workplan for the remaining program implementation requirements has now been
finalized. As originally planned, there is a clear need for consultants' support to continue the
implementation process. The scope of the consulting activities covers project management,
organizational design, practices redesign, technology infrastructure and process control
systems implementation, and work management and performance management systems
implementation.
The Phase 1 consulting, design and preliminary implementation services contract with EMA
Canada Inc., operating in consortium with ten local firms, is nearing completion of its agreed
scope of work and budget at the end of 1998. We are, therefore, seeking approval for interim
funding to continue Best Practices Program implementation during the first several weeks in
1999, through a short-term extension of the current contract for services with the EMA-led
consortium.
We are proposing that the EMA consortium provide key personnel at the original rates of the
Phase1 contract that expires by the year end. Using the same key personnel that are needed
during the transition period until mid-March 1999, the estimated maximum costs are
$979,203.00, including Goods and Services Tax. Table 1 below highlights the costs and
related activities. This is based on the anticipated timing for the contract award for Phase 2
requirements. In light of the fact that the schedules for Committee and Council meetings in
1999 have yet to be established, any delay which may result in a need for further approvals
will be brought forward to the Committees and Council at that time.
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Table 1
Works Best Practices Program Contract Extension with EMA - Costs and Related Activities
Similarly, there are several existing professional service agreements for specific technical and
implementation support to the program, which will also expire at the end of 1998. It will be
necessary to renew certain of these agreements for 1999. All the work is on a time and
materials basis as per their current agreements and Table 2 below summarizes the
requirements. The value of the specified work to be delivered in 1999 is shown in the right
hand column. Approval for agreement renewals is sought now in order to continue necessary
work in January 1999.
Once Council approves the 1999 Capital Budget, a number of other contracts will be initiated
for process control systems and related components required under the Best Practices
Program. They will be reported to Committees as appropriate.
The amount required to extend the EMA and Table 2 agreements, to their upset limits in 1999,
is $2,689,093.00 including Goods and Services Tax. All the expenditures identified herein are
consistent with the overall Works Best Practices Program budget as identified in the report
which was adopted by Council in October 1998. Adherence to the overall workplan, including
the timely procurement and utilization of necessary professional and consulting resources, is
fundamental to sustaining this progress toward successful completion of the program.
In order to address the expected delay in approval by Council of the 1999 Capital Budget, as
well as the winding down of Phase 1 to the implementation of Phase 2 of the Best Practices
Program, we have identified a need for interim capital funding approval in certain areas of the
Water and Wastewater Services Division. These areas are critical in that work is either
required to continue on from 1998 or needed to be started as soon as possible in 1999, in order
to achieve the timetable associated with these various projects, and take advantage of better
construction prices for contracts issued during the winter months.
Michael A. Price, P. Eng., FICE, General Manager, Water and Wastewater Services Division,
Phone: (416) 392-8200; Fax: (416) 392-4540, E-mail: mprice@city.toronto.on.ca.
