From the latest status report to the City of Winnipeg Standing Committee on Finance:
Critical Risks:
• Property Acquisitions
o Property requirements have been finalized and Planning, Property & Development has
assembled the draft expropriation report. The anticipated possession date of
expropriated properties is December, 2013. Negotiations with affected property owners
are ongoing and contingency plans (e.g. temporary utility connections) have been
developed, where possible, if negotiations are unsuccessful
o An easement is required at 2125 Dugald Road for the rail shoofly; there is no
contingency plan for this work. City staff and our design consultant have met with the
owner on several occasions to discuss the construction impact to the business and
gather and address concerns. This easement needs to be successfully negotiated by
May, 2013, otherwise the delay to constructing the rail shoofly will delay bridge
construction
o Other property requirements that must be successfully negotiated to accommodate
construction in 2013 include CN Rail, Fresh Water Fish Marketing Corporation, and 2129
Dugald Road
• Schedule
o The proposed 2014 completion date is aggressive
o Construction of the rail shoofly is anticipated to commence in Spring 2013 and bridge
construction is expected to commence immediately after the shoofly is put into service.
The bridge is expected to be operational in Fall 2014, and removal of the rail shoofly,
excavation and works below the structure would need to be completed under potentially
unfavorable weather conditions prior to the end of 2014
o The construction works are being consolidated into as few contracts as practical to
minimize procurement periods as well as coordination between contractors
o Inclusion of early completion incentives for construction will be reviewed
o A report delegating the authority to award contracts greater than $10,000,000 to the
CAO is in circulation to minimize procurement periods
• Costs
o The additional $2,000,000 the City of Winnipeg is contributing to this project may not be
sufficient to cover ineligible costs identified by the Building Canada Fund, which may
include:
Overheads and Other - costs incurred prior to federal approval-in-principle
(owner controlled insurance coverage and sewer televising; $400,000); overhead
and administration expenditures ($2,200,000)
Any and all expenditures related to contracts signed prior to federal approval-inprincipal
(Professional Service Contracts; $1,650,000)
• AECOM Canada Ltd.’s contract includes future services for which fees
need to be negotiated and approved by the City
Expenditures incurred after the project completion date (outstanding works
beneath structure, outstanding landscaping, associated professional services;
$3,500,000) (these could be mitigated through an extension similar to one
negotiated for the 2010 Infrastructure Stimulus Fund AT Program)
The cost of purchasing land and associated fees ($2,650,000)
Expenditures relating to services delivered directly by permanent employees of
the City ($1,500,000)
o Once the draft contribution agreements are received from the federal and provincial
governments, clarification may be required regarding costs incurred prior to approval-inprincipal,
contracts signed prior to approval-in-principal, the project completion date, and
services delivered by employees of the City. The Project Business Case identified
Traffic Signals, Traffic Services, Geomatics, Forestry and Underground Structures as
eligible costs
High Risk:
• CN Rail
o CN Rail is supplying rail track for the project and has indicated it will take six months for
delivery. To expedite the supply while an agreement is outstanding, CN Rail was
provided with a Purchase Order Number for their works in January, 2013. In late March,
2013, CN Rail requested a Letter of Intent from the City of Winnipeg before ordering the
materials. A Single Source Negotiation and Award Report for these works will be
submitted to the CFO for approval. The rail needs to be delivered to the site prior to
September 1, 2013
o CN Rail requires sealed drawings for all pipeline crossings, including the temporary
shoofly. To expedite the approvals, all utilities have been instructed to notify our design
consultant when the drawings are submitted who will follow-up with CN Rail’s approvals
office in Edmonton
• Shell Canada
o Shell Canada’s pipeline needs to be relocated by the end of 2013
o Shell Canada has indicated that they will not proceed with their design works until the
City of Winnipeg signs the Letter of Intent submitted on March 26, 2013. Once the letter
is signed and returned to Shell Canada Limited, an agreement to finalize the design and
relocate the pipeline needs to be negotiated within 60 days
• Imperial Oil Limited
o Imperial Oil Limited indicated they do not have the resources to design and relocate their
pipeline, and the City needs to procure these services. Imperial Oil Limited
recommended an engineering consultant for these works. The City of Winnipeg
requested a proposal from our design consultant identifying Imperial Oil Limited’s
recommended consultant as a subconsultant
o At the value engineering workshop, a concept was proposed to avoid relocating Imperial
Oil Limited’s pipeline. The concept has been further developed by our design consultant
but requires further review by Imperial Oil Limited’s recommended consultant
o Imperial Oil Limited’s pipe crosses the rail track and may need to be encased beneath
the rail shoofly