TAMRMS#: B06
7.2
REQUEST FOR DECISION
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Funding Request; Boudreau Rd at Campbell Rd Intersection Improvements
Presented by: Dean Schick, Transportation Manager, Engineering Services
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RECOMMENDED MOTION(S)
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That the budget for Transportation Network Improvements (charter ENGS-054), capital project 426422, Boudreau Rd at Campbell Rd Intersection Improvement be increased by $1,025,000 to $4,653,100 to be funded from the Capital Reserve.
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SUMMARY
This report provides an update on the Transportation Network Improvement project for 2026 that will deliver intersection improvements at Boudreau Road at Campbell Road and requests support for additional funding to complete the project based on the originally intended improvements and the received tender pricing for construction.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On June 3, 2025, Council passed the following motions:
PM-25-005 (AR-25-224)
• That the 2026-2035 Municipal RMR Capital plan provided as an attachment to the June 3, 2025 agenda report, be approved.
• That the 2026 Municipal Capital Budget of 27 projects be funded in the amount of $37,978,100. (Capital Charter ENGS-054 Transportation Network Improvements was approved in the amount of $3,628,100 in this Plan.)
BACKGROUND AND DISCUSSION
Funding requested for Transportation Network Improvements (ENGS-054) reflects prioritized network improvements to address safety and operational (congestion and delay) issues within the existing built transportation system.
The 2026 program targets the key east city entrance of the intersection of Boudreau Road at Campbell Road that has experienced increasing motor vehicle collisions and is impacted by high volumes, particularly at peak periods of the day, where traffic congestion exceeds vehicle storage capacity and results in significant delay that extends to other intersections in proximity to the site.
The focused improvements planned for the intersection include:
- Extending the eastbound right turn and left turn bays to increase storage and allow earlier entrance to mitigate impact of through movement queuing.
- Extending the westbound left turn bay to increase storage and allow earlier entrance to mitigate through movement queuing.
- Extending the northbound right turn lane to the AGLC intersection to dedicate a lane for right turns and reduce delay from through movements.
- Redesign of right turn islands to a smart channel right style design to improve safety through better sight lines and reduction of speeds.
- Supplemental work of sidewalk / trail infrastructure, streetlighting and landscaping.
- Coordination is occurring between Transportation and Utilities, as the Utility Department is performing installations of new pipe or protection systems for storm, water and sanitary.
In addition to the improvements of the intersection as listed above, this project is coordinated with planned RMR (Repair, Maintain, Replace) work to address failing asphalt structure, with funds allocated from the approved Arterial Roadway RMR and Rehabilitation budget. The project is also coordinating both Utility infrastructure work, as well as Transportation infrastructure work.
The full project scope for Transportation intersection improvements, RMR related work and Utility infrastructure work was posted for tender and closed with the final costs of work received higher than approved funding. The portion of scope associated with Utility work was higher than estimated but within approved funding so this work may progress; the portion of scope associated with Transportation work was higher than estimated and additional funding is required to advance the award of the project. Administration reviewed the costs received to assess if there were any unit rates beyond expectation and found that the costs received are reasonable and within current market value.
Comparison of Approved To Final Received Tender Pricing- Transportation Scope Only
1. The total approved funding from combined capital projects (Transportation Network Improvements and associated Roadway RMR) is $5,244,727.
2. The total cost of the tender price to complete Transportation applicable scope is $6,267,481
3. Variance of approved funding to received costs are $1,022,754.
It is important to note that within the costs received from the tender, there are two items associated with the delivery of the project and required to be accounted for during the award and contract signing; however, the funding is not anticipated to be fully applied to the actual delivery of the work:
1. Site Occupancy - this is a value that is applied as an incentive or penalty against the contractor and the proposed schedule. It reflects a unit rate per day that is set by the City as a charge for each day of work. Due to the high level of volumes at the significant intersection site, the value reflects a cost of having lanes closed and work occurring. The Contractor proposes a schedule to which they believe they can complete the work and applies the unit rate against the number of days in the proposal for completing the work. If the successful contractor completes the work ahead of the proposed schedule, there is a payment made based on the number of days ahead of the schedule multiplied by the daily unit rate; the contractor then receives this as a “bonus” for being ahead of schedule and reducing the impact of road construction on a significant site. If the contractor is working beyond the number of days allowed in the contract as scheduled, there is a penalty against the contractor based on the added number of days required to complete the job multiplied by the daily unit rate. This acts as a deterrent for the contractor to exceed the schedule and complete work efficiently.
Specific to this project the value of the Site occupancy equates to a total of $720,000.
It is impossible for the contractor to complete the work in “0” days, and each allowable working day that passes (with the exception of rain days or delays caused outside the Contractor’s ability to control), the value is reduced by the daily unit rate. Thus, barring any unforeseen circumstances, it is anticipated that a substantial portion of this line item will be returned at the project’s completion.
2. Contingency - this value is calculated as an industry practice of 10% of construction costs at tender and construction phase. Although not fully anticipated to be applied to the project, it is a value of funding that empowers the project to address potential “unknowns” or site issues to effectively and efficiently complete the work. The total contingency amount needs to be increased based on the overall increase to the tender value.
To address the above two items within the Transportation scope, Administration is requesting the additional funding of $1,025,000 to empower the project team to award the contract and complete the work with expectation of a portion of funds being returned to the Capital Reserve upon project completion.
IMPACTS OF RECOMMENDATION(S)
Financial:
If approved, an additional $1,025,000 would be funded from the Capital Reserve, which has sufficient funds. While initial funding would be from the Capital Reserve Administration would look for other funding opportunities. Funding this project will reduce the amount of capital dollars available for future prioritized capital projects as well as emergent capital items.
Compliance & Legal:
If approved, the City can continue with the planned intersection and roadway improvements and rehabilitation without needing to defer project scope.
Program or Service:
If approved, intersection work will advance that will require implementation of various stages of lane closures. Scheduling of the work will be planned in coordination between the Transportation and Utility teams, as well as integrate consideration of additional RMR projects such as the Boudreau Road Mill and Overlay program that is happening in close proximity to the site.
Organizational:
If approved, it is anticipated that completion of this project will result in reduced maintenance from the City’s Public Operations. The intersection state of rutting and asphalt failure has resulted in difficulty of seasonal road maintenance (snow clearing) and management of the asphalt structure. The significant scopes of work between the two groups of Utilities and Transportation are also best coordinated with a wholistic delivery of improvements and repairs.
Risks
Greater risks are associated with consideration of not advancing work, particularly involving the state of infrastructure for both Utilities and Transportation assets. Efficiencies of project coordination between the two can lead to reduced costs associated with mobilization and economy of scale of work, as well as effectively reduce negative impacts of lane closures to complete the scope together.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
Not Applicable
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
G.1.8 Transportation Network Asset Management and Maintenance
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the proposed motion, Administration presents the following alternatives for Council’s consideration.
ALTERNATIVE 1: Delay / Defer Transportation Scope of Work
In this option, scope associated with Utility work would be completed, however, scope associated with Transportation improvements and RMR would be pulled from the contract and potentially delayed until tendering in the future with the appropriate budget approval.
Financial:
If approved, this alternative would not require additional funds to advance the Utility work and the approved funding for the intersection improvements and RMR work (total of $5,244,727) would be postponed and budget carried forward for future implementation.
Compliance & Legal:
None at this time.
Program or Service:
This alternative would empower the Utility scope to be completed without delay of coordination for funding from Transportation; however, would require the contractor to mobilize and implement traffic control and lane closures to complete the work. There would be a separate contractor who needs to mobilize and complete lane closures for future Transportation scope. This would have additional overall mobilization/demobilization efforts due to splitting of the scope and loss of synergy in the program delivery.
Organizational:
Public Operations will be required to respond to the conditions of the asphalt surface to address pot holes and failures, while also being impacted in the winter months to best manage snow clearing and ice control with the conditions of the rutting as it exists today.
Risks
Increased costs for construction, subject to final resulting costs of future transportation scope tendering. Manifestation of significant asphalt area deterioration and influence to operations of the intersection is to be expected. It is anticipated to incur lost costs of patch / repair work from completion of Utility work being replaced once transportation scope of construction is completed in the future.
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Report Date: June 16, 2026
Author(s): Dean Schick, Transportation Manager
Department: Engineering
Department Director: Dawny George
Managing Director: Adryan Slaght
Chief Administrative Officer: William Fletcher