Construction Concerns Raised by Citizens

Recommendation:
That the September 2, 2005, Transportation and Streets Department Report 2005TS6576 be received for information.

Report Summary

This report responds to issues regarding developer-funded arterial roadways.

Previous Committee Action

At the June 28, 2005, Transportation and Public Works Committee meeting, the following motion was passed:

That Administration prepare a report for the September 20, 2005, Transportation and Public Works Committee meeting, on:

  1. the status of discussions with the Urban Development Institute regarding developer-funded arterial roadways.
  2. the feasibility of the City assuming management of its own developer-funded arterial roadway projects.

Report

  • The Transportation and Streets Department has held discussions with industry representatives from the Urban Development Institute (UDI) to review the construction management of developer-funded arterial roadway projects. UDI is aware of concerns related to communication with the public, project completion deadlines and, the length of time an existing arterial road is closed to traffic.
  • When the Arterial Road Assessment (ARA) was approved in 2000, the development industry took on a much larger responsibility for the construction of arterial roads. This role has continued to grow to keep pace with the level of development in the city. The shift in responsibility to the developer to construct arterial roads adjacent to their developments, is a significant change that requires a period of adjustment.
  • Improvements have been noted during the 2005 construction season related to the project management of developer-funded arterial roadways. UDI has also acknowledged the unique nature of arterial roadway construction and the specialized processes required to effectively manage the work. A number of process changes and enhancements have been negotiated with UDI to mitigate these concerns.
  • The Transportation and Streets Department will continue to monitor the construction progress of developer-funded arterial roads to ensure the process changes and enhancements are implemented.
  • Properly managed developer-funded construction projects are constructed to the same standards and quality as City managed projects. Developer-funded arterial roads are being constructed by the same group of contractors retained by the City of Edmonton.
  • As a result of the current high level of development activity and corresponding developer-funded arterial roadway construction, the current staffing levels within the Transportation and Streets Department are not adequate to effectively manage developer-funded arterial roadway projects.
  • To effectively manage the construction of developer-funded arterial roadways, the Transportation and Streets Department would need to hire an additional six to eight employees to handle an average $7 million of construction. Fluctuation in the volume of construction of developer-funded arterial roads is controlled by the development industry and therefore better managed by them.
  • Developers are able to negotiate lower prices, compared to prices obtained through the City’s open tender process.
  • Based on the current commitment by the development industry to implement the negotiated project management changes, the Transportation and Streets Department supports that the development industry continue to provide project management of developer-funded arterial roadway construction projects. The Transportation and Streets Department will continue to monitor the development industry’s project management practices.

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