Report to: General Committee Report Date: June 25, 2007

SUBJECT: Clegg Road Extension and Courtyard Lane – Construction

- Warden Ave - Underground Service Connections

- Markham District Energy funding

- Project budget update

PREPARED BY: Steven Sydij, Senior Construction Buyer

Veronica Siu, Senior Business Analyst

RECOMMENDATION:

THAT the report entitled “Clegg Road Extension and Cedarland Drive” be received;

AND THAT staff be authorized to issue a Purchase Order to the Region of York for underground service connections in Warden Avenue in the amount not to exceed $400,000;

AND THAT funding in the amount $480,000 be provided by Markham District Energy Inc. (MDEI) for their heating/cooling component of the project;

AND THAT funding for this project be revised to reflect the credit agreements with Liberty Development (2015776 ONTARIO INC.) in the current amount of approximately $3,634,658.10;

AND THAT the budgeted funding sources for the Clegg Road Extension and Courtyard Lane be adjusted to reflect the construction award to Advice Contracting Limited approved by Council on September 26, 2006, as detailed in Appendix A – Revised Budget:

AND THAT any previously approved funding from Development Charges (DCA) and Taxes be returned to the DCA reserve fund and the Capital Contingency project respectively as detailed in Appendix A – Change vs. Original Budget;

AND THAT the project name for 083-5350-6740-005 be amended from “Clegg Extension & Cedarland Dr.” to “Clegg Rd Extension & Courtyard Lane Construction”;

AND FURTHER THAT staff be authorized and directed to do all things necessary to give effect to this resolution;

EXECUTIVE SUMMARY: Not applicable

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

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

PURPOSE:

The purpose of this report is obtain authority to issue a purchase order to the Region of York for the underground service connections at Clegg Road and Warden Avenue, to confirm that Markham District Energy will be funding a portion of this project and to obtain authority to adjust the budgeted funding sources in accordance with the September 26, 2006 Council resolution awarding the construction of Clegg Road and Courtyard Lane to Advice Contracting Limited.

BACKGROUND:

The 2005 budget process approved a capital project #6740 for the Clegg Road extension and Courtyard Drive construction in the amount of $2,101,900, funded primarily by the Town with Development Charge revenue. This project included providing underground services from Warden Avenue for Clegg Road and Courtyard Drive. In addition (although not reflected in the budget) Markham District Energy services were being brought in from Town Centre Boulevard to service a developer’s site.

In late 2005 the developer (Liberty Development) expressed an interest in their Subdivision Agreement that the Town complete this project and they would finance it through a credit agreement which was formally signed in August of 2006. In early June of 2006 however the Town was advised by the Region of York that they were prepared to make all the necessary service connections at Warden Avenue for the Clegg Road project, while they were doing the improvement to Warden Avenue. Because the Subdivision Agreement had not yet been signed the Town obtained a separate signed agreement (c/w securities) from the developer to pay for this service connection.

The Town tendered this project in the summer of 2006 and in September obtained Council approval to award the tender.

OPTIONS/ DISCUSSION:

It is necessary for the Town to issue a purchase order for $400,000 to the Region of York to authorize payment to the Region for the underground service connections on Warden. This amount is included in the approved budget.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

The scope of the Clegg Rd extension project has increased due to the addition of design and construction for Courtyard Lane and the associated stormwater drainage requirements, and these increases were reflected in the September 26, 2006 award to Advice Contracting. In order to correctly reflect the budgeted funding sources for this project due to Liberty Development’s desire to cash flow the project, a number of minor revisions to the project budget are required. Appendix A summarizes the proposed budget amendments to accounts 083-5350-6113-005 (Clegg Road Extension to Warden Avenue - Detail Design), 083-5350-6740-005 (Clegg Extension & Cedarland Dr.) and 83 6150 7265 00 (Clegg Road Extension and Cedarland Drive Reconstruction) from $3.1M, funded from DCA $2.0M, Taxes $0.1M, and Developer Financed DCA $1.0M to $4.2M funded from Developer Financed DCA $3.7M and Markham District Energy Inc. (MDEI) $0.5M.

Staff recommends the project name for 083-5350-6740-005 be amended from “Clegg Extension & Cedarland Dr.” to “Clegg Rd Extension & Courtyard Lane Construction”. The Cedarland Drive reconstruction component of this project has been deferred to another budget year.

ENVIRONMENTAL CONSIDERATIONS: Not applicable

ACCESSIBILITY CONSIDERATIONS: Not applicable

ENGAGE 21^ST CONSIDERATIONS: Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED: Not applicable

RECOMMENDED

BY: ________________________ ________________________

Barb Cribbett, Treasurer Andy Taylor, Commissioner,

Corporate Services

ATTACHMENTS:

Appendix A: Clegg Rd Extension and Courtyard Lane Construction Budget Change