TOWN OF VIEW ROYAL COUNCIL REPORT: Six Mile Road Improvements – BC Hydro Payment

Six Mile Road Improvements – BC Hydro Payment

RECOMMENDATION:

THAT Council approve the payment of $91,833 to BC Hydro for utility works in support of the Six Mile Road Roundabout.

PURPOSE:

To solicit Council’s approval to pay BC Hydro for the Town’s portion of utility works in support of the construction of the Six Mile Road roundabout (Project C-018).

TIME CRITICAL:

BC Hydro requires payment from View Royal to proceed with scheduling their construction, which must happen prior to the construction of the Six Mile Road roundabout, which is scheduled for 2023.

EXECUTIVE SUMMARY:

BC Hydro has finalized the design for their utility upgrades at Six Mile Road and Atkins Road that resolves conflict with the Town’s future roundabout. The Town is responsible to make payment to BC Hydro in the amount of $91,833 (net of rebateable taxes) for the installation of these works. This expense is budgeted in the Town’s draft 2023 Financial Plan to be funded from the Community Works Fund and Council’s approval is required for procurement commitments over $75,000. A decision not to approve this payment may result in delay and additional costs to the Town’s Six Mile Road roundabout project.

BACKGROUND:

The Six Mile Road Improvements project number C-018 is included in the draft 2023-2027 Financial Plan (and was previously included in the 2022-2026 Financial Plan). Part of this project entails the planned upgrade of BC Hydro utility to be located outside the footprint of the Town’s future roundabout at the intersection of Six Mile Road and Atkins Road.

DISCUSSION:

BC Hydro, in consultation with View Royal staff, have finalized their utility relocation design that is required to resolve the foreseeable conflicts with the Town’s roundabout project. As a result, BC Hydro has informed the Town that it is responsible for payment in the amount of $91,833 (net of rebateable taxes) for these works. This payment is expected to accomplish the entire scope of work described in project C-018 as “2023—Construction of BC Hydro duct work”.

Per the Town’s Purchasing Policy number 1600-021, Council approval is required for this purchase as the cost exceeds $75,000. As BC Hydro retains exclusive control over their utility, Municipalities are required to pay BC Hydro directly for their administration of this work.

FINANCIAL IMPLICATIONS:

The $91,833 expense that is the subject of this report is budgeted in the 2023-2027 Financial Plan that is anticipated to be approved, and is funded in 2023 through the Community Works Fund.

ALTERNATIVES:

A decision not to approve this report’s recommendation may result in delay and additional costs to the Town’s Six Mile Road roundabout project.

CONCLUSION:

With the anticipated approval of the 2023-2027 Financial Plan, staff recommend that the payment of $91,833 to BC Hydro be approved to maintain project times and to mitigate extra costs that would occur with delaying these works that are associated with roundabout project C-018.

Attachment: Project Summary C-018 – Six Mile Road Improvements