TAMRMS#: B06
8.1
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Ray Gibbon Drive Phases 3 & 4
Presented by: Dean Schick, Transportation Manager, Engineering Services
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RECOMMENDED MOTION(S)
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That the ENGS-074 Ray Gibbon Drive Corridor Improvements for phases 3 and 4 be approved in the amount of $44,382,000, to be funded accordingly:
* $35,105,000 from Provincial Capital Grant (50/50 cost share agreement);
* $8,385,500 from Borrowing Bylaw 18/2019;
* $527,500 from the Capital Reserve; and
* $364,000 from recovered costs.
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PURPOSE OF REPORT
To provide Council with a status update of the arterial network improvement project Ray Gibbon Drive, and obtain Council approval for the budget for phases 3 & 4.
BACKGROUND AND DISCUSSION
In 2019, the City signed a cost-sharing agreement with the Government of Alberta to fund the Ray Gibbon Drive Project: twinning the road from the south City limit to the north terminus of the corridor over 4 phases from 2019 through to 2029. This agreement estimated the total cost of the project at $54,209,000, with the Government and the City each funding 50 per cent of the total cost ($27,104,500). The agreement was structured so that the City would fund the project from 2019-2022 to complete Phases 1 and 2, with the province funding the remainder of the project from 2025-2029 to complete Phases 3 and 4.
During construction of Phase 2 of the corridor, work was advanced for completion of design of the next phases (Phases 3 and 4) and once the preliminary design work was completed, it was identified that the total estimated cost of the project had increased by ~$16 million from $54,209,000 to $70,210,000. This total value increase reflects a new cost-share per partner of $35,105,000 which reflects an increase of $8,000,500 per partner. Administration met with Government of Alberta representatives to discuss this cost increase over Q2-Q3 2023 and provided a letter and background information to detail the factors contributing to the cost inc...
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