Since the specific project details remain the same as the submission for DMAF Special Intake, both Appendix A and B provide the details of the project being recommended for the Targeting Success intakes. Funding remains the same, and is detailed in the Financial Matters section of this report for additional clarity. While the total estimated project costs remain at $80M and requested grant funding is expected to be $27M these costs are being reconfirmed by Administration. Since the submission in August 2019 additional studies and modelling were completed on the Sewer Master Plan. As a result, while all the original projects remain as requirements, there may be some changes to the specific details and reduced sizing specifications. As the project would also start later than originally planned cost estimates for inflation are being revisited as well. It is expected the total project costs will come in at or slightly below original estimates of $80M in total project costs and $27M in requested grant funding.
Risk Analysis:
The risks outlined in the original report, and attached as Appendix A, remain the same. There are no additional risks identified for this report.
Financial Matters:
The recommended funding source for the resubmission of the DMAF Special Intake projects to the DMAF Targeting Success intake remain the same. City Council in 2019 and 2020 approved increases and adjustments to the Sewer Surcharge rates. A significant portion of this increase was allocated to the Capital Budget with a defined amount of the increase being allocated to the Sewer Master Plan Implementation project (ENG-002-19). The projects identified for DMAF Targeting Success intake are included in the Sewer Master Plan recommendations and therefore align with the recommended funding source. The funding source being Sewer Surcharge also offers limited flexibility on the type of projects which qualify to use this funding.
The funding recommended for the DMAF Targeting Success Intake seeks to leverage $5M each year from 2020 to 2028 from the Sewer Master Plan Implementation project (ENG-002-19). This would leave an annual average of approximately $6M in funding each year from 2020 to 2028 for other projects included in the Sewer Master Plan, such as the Sandwich Sewer Rehabilitation project recently approved by City Council, CR139/2020. The projects in this submission are substantial and as outlined in Appendix B will take several years to implement. As such allocating a smaller portion of the Sewer Master Plan Implementation project funding over a longer period of time provides flexibility for other work to proceed in parallel and is more in line with expenditures for these projects.
Consultations:
Anna Godo – Engineer III
Colleen Middaugh – Project Administrator