Report to: Development Services Committee Report Date: June 19, 2007

SUBJECT: Woodbine By-pass/Hwy 404 Crossing/Hwy 404 Ramp Extension Update

PREPARED BY: Alan Brown, Director, Engineering Ext. 7507

RECOMMENDATION:

That the staff report entitled, “Woodbine By-pass/Hwy 404 Crossing/Hwy 404 Ramp Extension Update”, dated June 19, 2007 be received;

Woodbine By-pass

And that Mayor and Clerk be authorized to execute the necessary agreements with the Region of York and the Hwy 404 North Developers for the property acquisition, financing and construction of Phase 2b and 3 of the Woodbine By-pass, in forms satisfactory to the Chief Administrative Officer and the Town Solicitor;

And that the Mayor and Clerk be authorized to execute a maintenance agreement for the Woodbine By-pass with the Region of York to the satisfaction of the Chief Administrative Officer, Town Solicitor and Commissioner of Community and Fire Services;

And that staff report back with the necessary credit agreement to be executed with the 404 North Developers for the financing and construction of the municipal infrastructure (i.e. sanitary sewers, watermain, sidewalk, etc.) to service the Secondary Plan Area, subject to the passage of an ASDC by-law;

And that design and contract administration of the Carlton Creek culvert replacement be awarded to a consultant engineer to be selected by staff and the Region of York, on a preferred supplier basis in the upset limit of $121,157.60 inclusive of GST and disbursements ($119,960 exclusive of GST) subject to receipt of funds from the Region of York;

And that a contingency amount of $15,264 inclusive of GST ($14,400 exclusive of GST) be established to cover additional design fees associated with the Carlton Creek culvert replacement and that the Director of Engineering be authorized to approve the expenditure of this amount up to the specified limit.

And that a 2007 Engineering Department Capital Budget be created for the Carlton Creek culvert replacement at a cost of $145,109 inclusive of Engineering Administration Fees and exclusive of GST to be funded by the Region of York.

Highway 404 ramp extension at Major Mackenzie Drive

And that staff be authorized to file the Class Environmental Study for the Hwy 404 ramp extension at Major Mackenzie Drive with the Ministry of Environment subject to the resolution of the Ministry of Transportation issues to the satisfaction of the Director of Engineering;

And that the purchase order for McCormick Rankin Corporation (P6509 - 404 Northbound ramp extension at Major Mackenzie Dr., EA) for the preparation of the Class EA be increased by $31,900.00 to cover the cost of additional preliminary design work required by Ministry of Transportation, and funded from capital account #083 5350 7272 005, for Highway 404 ramp extension at Major Mackenzie Drive;

404 North Trunk Sanitary Sewer

And that staff be authorized to retain a qualified consulting firm in accordance with the Town’s Purchasing Bylaw to provide detailed design services for Phase 2 of the 404 North trunk sanitary sewer to an upset limit of $460,000 subject to receipt of funds from the Hwy 404 North Developers.

And that a contingency amount of $48,760 inclusive of GST ($46,000 exclusive of GST) be established to cover any additional design fees and that the Director of Engineering be authorized to approve the expenditure of this amount up to the specified limit.

And that a 2007 Engineering Department Capital Budget be created for the design of Phase 2 of the 404 North trunk sanitary sewer in the amount of $536,360 inclusive of Engineering Administration Fees and exclusive of GST to be financed by the Hwy 404 North Developers.

And that staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

The Tri Party agreement with the Region of York, West Cathedral and the Town for the construction and financing of the Woodbine By-pass (Phases 1 and 2A) is to be executed by July 2007 so that both the Cathedral development and construction can proceed.

Recent announcements from the Hwy 404 North Developers about their proceeding with development will result in Markham achieving an earlier completion of the Woodbine By-pass around Victoria Square. Appropriate agreements have to be entered into with the 404 North Developers, the Region of York, and the Town for the financing and construction of Phase 2B and 3 of the By-pass. In addition, municipal infrastructure including the second phase of 404 north trunk sanitary sewer, local sanitary sewer and watermains, sidewalks and illumination are to be provided on the By-pass to accommodate growth and a credit agreement with the Hwy. 404 North Developers to cash flow the costs will be required.

The Class EA study for a grade separation crossing Hwy 404 in the Cathedral Community is anticipated to be filed late 2007/early 2008 and the process to release certain employment lands for development can proceed.

The Class EA study for the Hwy. 404 ramp extension at Major Mackenzie Drive is in a position to file with the MOE for the public review period (30 days) subject to resolution of preliminary design issues raised by the MTO. Subject to the expiry of the EA review period and registration of the right-of-way reference plan, the Town and impacted developers can proceed with the process to release HOLD provisions of certain lands in the Cathedral secondary plan.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

BACKGROUND:

“Woodbine By-pass Agreement is Proceeding”

Council at its March 8, 2005, April 11, 2006 and January 31, 2006 meetings authorized the execution of the necessary agreement with the Region of York and Cathedral Developers for the Regional financing and construction of the Woodbine By-pass (Phases 1 and 2a). The Tri Party Agreement is currently being finalized and is expected to be executed by the 3 parties in July 2007 so that Cathedral development and the tender for construction can proceed.

The credit agreement between the Town and the West Cathedral Group outlining the construction, financing and credits for sidewalk, illumination and watermain installation on the by-pass is being finalized and staff will report back in September 2007 with the final version for approval.

“Maintenance Agreement’

The Region has requested Markham enter into a maintenance agreement related to the Woodbine By-pass. Upon completion of the total by-pass (Phases 1, 2 and 3), the operation and maintenance of the by-pass will be transferred to the Region and Markham will assume ownership of existing Woodbine Avenue between the by-pass connections. The Region is currently preparing the draft maintenance agreement for execution which will be subject to the approval of the Chief Administrative Officer, Town Solicitor and Commissioner of Community and Fire Services.

“Carlton Creek Culvert Replacement”

The Region has reviewed the condition of the existing culvert carrying Carlton Creek under Woodbine Ave between Major Mackenzie Drive and the south terminus of the Bypass and determined it will require replacement in the short term. To avoid future disruption of traffic on Woodbine Avenue, the Region has requested that the Town include the culvert replacement as a part of the Bypass construction. The Region is prepared to fund the design and construction of this work. Staff are obtaining quotations from engineering consultants to complete the design work and upon receipt of funds, staff recommends a purchase order for the work be issued to the preferred supplier pursuant to section 7(1)d of the Purchasing By-law.

As Carlton Creek is a coldwater fishery, MNR and DFO approval is required in addition to that of TRCA. Staff do not anticipate the tender for the culvert replacement will be ready until Spring 2008.

A new Capital budget account is required in the amount of $145,109 to undertake this additional work, which is to be funded by the Region.

“A similar Tri Party Agreement with the Region of York and Hwy 404 North Developers will be required.”

In order to proceed with construction of Phase 2B & 3 of the by-pass a Tri Party agreement between the 404 North Developers, Region of York and the Town is required.

Preliminary Principles of the Tri Party Agreement are:

1. Hwy. 404 North Group

● Finance the design, approval, construction and engineering fees of Phases 2b and 3.

● Deposit a Letter of Credit with the Town for the construction and administration costs prior to award of the tender by the Town

● Deposit any additional letter of credit as required at the tender award stage

● Dedicate at no cost to the Region of York the necessary right-of-way for Phase 3 by a date to be confirmed.

● If necessary finance the expropriation of any lands required to construct the by-pass

● Provide the necessary storm outfalls to the Region for the by-pass.

2. Town of Markham

● Markham will be the proponent for the design, approval, tender and construction of Phases 2B and 3

● The Town will be compensated for all costs associated with this project (i.e. design, contract administration, construction, project management, etc.) by the group

● Markham would maintain the By-pass as a collector road until Stage 3 is completed and assumed by the Region

● Markham at no cost would transfer obligations related to the By-pass to the Region upon completion of Stage 3

3. Region of York

● The Region of York will provide development charges credit of the transportation component of their development charges to the participating developers for related costs commencing May 31, 2007. The total costs are to be finalized inclusive of both residential and non-residential development

● The Region of York will compensate the group for additional property beyond the 20 m right of way (to achieve a 36 m right of way)

● The Region of York will reimburse the group the non growth share of the project after substantial completion of Phase 3 to be determined based on the number of years the project is advanced from the date in the Region’s 10 year capital plan

● The Region of York will compensate the group for any storm oversizing and stormwater management for the By-pass.

● If necessary the Region will expropriate any hold out properties required for the by-pass if negotiations are unsuccessful

The above principles are subject to further discussions between the 3 parties and the Region obtaining their Council’s approval.

“Credit Agreement required with the 404 North Developers”

As part of the construction of the by-pass (Phase 2B & 3) sidewalks, illumination and watermain are to be built within the right of way, which typically will be included in a future Area Specific Development charges by-law for the 404 North secondary plan.

A credit agreement outlining the construction and financing by the developers and ASDC credits by the Town is to be executed prior to tender award expected in mid 2008 and subject to the approval of an ASDC bylaw. Staff will submit the final agreement to Committee/Council for approval.

“Updated Construction Schedule”

With the advancement of Phase 2B and 3 of the By-pass, the Region’s request to replace the Carlton Creek Crossing at Woodbine Avenue (North of Major Mackenzie) and the addition of Phase 2 of the trunk sanitary sewer, the overall schedule for construction of the by-pass is currently being finalized with the Region, Cathedral and Hwy 404 North Developers. The draft schedule is as follows:

The Cathedral Group requested Markham defer construction of Phase 1a to May 2008 and combine the contract with Phase 2a. Staff are currently reviewing their proposal and will advise Council.

Trunk sanitary sewer construction – Phase 1(Betty Roman Blvd to Elgin Mills Road)

· Tender – May 2007

· Construction – June to October 2007

Bypass Construction -Phase 1a – (Woodbine Ave. intersection to Betty Roman Blvd)

· Tender – Summer 2007

· Construction – September 2007 to summer 2008

Bypass Construction – Phase 2a – (Betty Roman Blvd. to Lord Melbourne Street)

• Tender Spring 2008
• Construction Summer to Fall 2008

Trunk Sanitary sewer construction – Phase 2 – (Elgin Mills Road to Woodbine Avenue)

• Tender – Spring 2008
• Construction - Summer to Fall 2008

Bypass Construction – Phase 1b - (Major Mackenzie Drive to Bypass/Woodbine Avenue intersection including culvert replacement)

· Tender - Spring 2008

· Construction – Summer 2008 to end of 2008

Bypass Construction – Phases 2b & 3

§ Tender – Fall 2008

§ Construction late 2008 to Fall 2009

Proceeding with the Middle Phase will provide the Cathedral Developers additional access to develop some of their employment lands. Interim southerly access to Major Mackenzie will be available via STA ‘A’ and Markland Drive as per Attachment ‘A’.

Staff are reviewing the feasibility of combining certain phases of construction.

“Streetscaping of Woodbine By-pass”

Staff have pursued during the design stage opportunities to minimize the continuous centre turning lane. Unfortunately the multiple accesses onto the by-pass from the Cathedral local roads and corresponding centre turn and taper lanes do not allow any meaningful elimination of the centre lane.

Landscaping in isolated pockets could be provided but is not eligible for Regional or Town Development Charge funding. Funding assistance may be available in 2008 through the Region’s Streetscape Funding Partnership Policy.

Staff will pursue this matter and report back under the 2008 Capital Budget process as to Town & Regional Funding. Staff will include in the road tender, contingency items to construct landscape medians if budget approval is received.

“Financial Considerations”

Staff will report back at the tender award stages for the various components of the Woodbine sanitary sewer and the Woodbine by-pass construction.

In respect to this report three amendments to the Engineering Department Capital Budget are required:

a) A new capital account for the Design and Contract administration of the Carlton Creek culvert replacement in the amount of $145,109 to be funded by the Region of York

b) An over expenditure of $31,900 to the McCormick Rankin purchase order (P6509) to advance the preliminary design of the Hwy. 404 ramp extension to obtain MTO approval and to be funded from the 2006 Capital Budget account 083-5350-7272-005 (Hwy 404 ramp extension at Major Mackenzie Dr.).

c) A new capital account for consultant services related to the design, approval and tender of Phase 2 of the sanitary sewer is required in the amount of $536,360 which is to be financed by the Hwy 404 North Developers.

“Hwy 404 Grade Separation”

The Engineering Department is managing the Class EA for the Hwy 404 grade separation between Major Mackenzie Drive and Elgin Mills Road. The Class Environmental Assessment is a joint Region of York, Richmond Hill and Town of Markham initiative which will determine the preferred location of a grade separation across Hwy 404 as per Attachment ‘A’.

A Public Information Center was held on June 7^th to discuss the three corridor alternatives and identified the south corridor as the preferred alternative for the grade separation alignment.

It is anticipated the Class EA Study will be completed and filed for public review late 2007/early 2008.

In the draft plan approvals for the Monarch, Romandale Farms and 404 Developments plans of subdivision, HOLD provisions on certain employment and residential lands have been applied as per Attachment ‘B’ until the Hwy 404 grade separation alignment has been finalized.

The process to release the certain employment lands for development is outlined later in this report.

“Hwy 404 ramp Extension at Major Mackenzie Drive”

A Class Environmental Assessment Study has been undertaken for the Hwy 404 ramp extension north of Major Mackenzie Drive as per Attachment ‘B’. The purpose of the Class EA study is to confirm the future need for a ramp extension, recommend the preferred design concept including identification of property requirements, provide cost estimates and obtain preliminary approval from the Ontario Ministry of Transportation.

Public consultation was initiated to provide opportunity for public and agency involvement. The Public Information Centre identified a preferred ramp extension alignment. Several meetings were held with the West Cathedral landowners to present the preferred ramp extension alignment.

Discussions with the Ontario Ministry of Transportation as part of the Class EA process were held to obtain their approval of the preferred alignment. The Ministry supported the proposal in principal but requested additional preliminary design work for the preferred alignment which is beyond the scope of work for the Class EA study.

An allowance for consultant services related to the additional preliminary design is required in the amount of $31,900.00 which is to be funded from the Engineering Capital Account #083 5350 7272 005 for the Hwy. 404 ramp extension of Major Mackenzie.

The Class EA study is in a position to file the report with the MOE for the public review period (30 days) subject to resolution of preliminary design issues raised by the MTO.

In the Majorwood Developments draft plan of subdivision a HOLD provision was applied to blocks within the plan of subdivision that were within the study area for the Hwy 404 ramp extension as per Attachment ‘C’.

Upon completion and approval of the EA Study the Town and developers can commence the process to release certain employment lands for development as specified below.

“Removal of HOLD Provisions”

The following steps would be required to release the employment blocks in the Cathedral Town subdivision that are subject to the Class EA studies (404 grade separation, Hwy 404 ramp extension):

• Markham approves the EA Studies and the appeal period has been completed without objection
• Prepare reference plan
• Any revisions to the alignment of the flyover or off-ramp extension have been incorporated into the relevant draft plans of subdivision
• Owner is released from the provisions of the “Agreement not to Pre-sell”
• Owner submits an application for subdivision agreement and draft M-plan showing employment blocks to be released for registration
• Standard process for drafting and executing subdivision agreement and releasing employment lands for registration

The following steps to remove H provisions in Zoning By-law are also required:

• Owner Submits application to remove H
• Town determines that H-removal conditions set out in original zoning by-law have been met
• Council enacts a by-law to remove H
• No provisions for 3^rd party appeal to OMB

BUSINESS UNITS CONSULTED AND AFFECTED:

The Planning, Legal and Finance Departments have been consulted in the preparation of this report and their comments have been incorporated.

RECOMMENDED BY:

Alan Brown, C.E.T. Director of Engineering

Jim Baird, M.C.I.P., R.P.P. Commissioner of Development Services

ATTACHMENTS:

Attachment ‘A’ – Hwy 404 Grade Separation Corridor Alternatives

Attachment ‘B’ – Hwy. 404 Ramp Extension at Major Mackenzie Drive

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