Servicing Agreement Goldcorp Overpass on Goldmine Road and ...

EO 11 40

ADMINISTRATIVE

REPORT

Site Servicing Agreement Goldcorp Overpasson Goldmine Road and Vipond Road

BACKGROUND

Goldcorp Porcupine Gold Mines will be constructing two overpasses on City of Timminsproperty in preparation for the Hollinger Project The new overpass structures willnecessitate modification to the existing watermain and roadway infrastructure As aresult the City of Timmins requires that a Servicing Agreement be entered into in orderto ensure that all works proceed in accordance to our standards

ANALYSIS DISCUSSION

The City of Timmins enters into Site Servicing Agreements whenever NEW

MUNICIPAL INFRASTRUCTURE water sewer road is required as part of any privateprojects

The work being proposed by Goldcorp consists of constructing two new overpassstructures one over Goldmine Road and one over Vipond Road in preparation for anew haul route The structures will allow Goldcorp to construct a private route from theexisting Goldcorp Mill Facility to the new Hollinger Project Mine Site

In general the Agreement addresses the watermain diversions required for this projectas well as any road upgrades The project will provide a detour access road along theGoldmine Road overpass during the entire construction period Direct access to SouthPorcupine will not be compromised from Goldmine Road It is the intent of the project toclose Vipond Road In this regard Fire Police Ambulance and Transit services willhave to be informed of the impending closure

A detailed Draft Servicing Agreement for this work has been prepared and all conditionsare being reviewed by the Owner

Of note this Agreement solely addresses the work required for the new overpassstructures and the work required in preparation for the new haul route This Agreementdoes not provide any approval for the Hollinger Mine Project A separate Site PlanControl Agreement will be prepared for the Hollinger Mine Project and shall requireCouncil approval before proceeding

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Public consultation for this phase of the project was extensively undertaken byGoldcorp Many of those public sessions were attended by City of Timmins

representatives In addition several face to face meetings with Engineering have takenplace over the last several months detailing our requirements for this work

Public sessions have been held by Goldcorp on the following dates March 29 2007October 2 2008 May 19 2010 and January 20 2011 During each of these openhouse sessions information about the Hollinger Project has been on display andGoldcorp staff was available to answer questions Information concerning the haul roadand road crossings has been presented with information updated as details weredeveloped Feedback in the form of questionnaires comments sheets and emails havebeen collected and documented from each of the sessions The Hollinger ProjectInformation Center in Schumacher has been open and manned by Goldcorp staffregularly over the past three years In addition the Hollinger Project CommunityAdvisory Committee has been meeting on a regular basis for nearly two years Regularupdates on the project are provided to the members who in turn convey feedback to thecommunity at large

RELEVANT POLICY LEGISLATION

City of Timmins Manual of Engineering ProceduresMTO Book 7 Traffic Control

AWWA Standard C651 05 watermainOPSS 441 watermain

STATEMENT OF DIRECTION PRIORITIES BUSINESS PLAN

Council is committed to a sustainable longterm infrastructure which maintains thequality of life for Timmins residents and Timmins attractiveness for new businesses

FINANCIAL IMPLICATIONS

No immediate financial cost to the Corporation as all of the work is being undertaken byGoldcorp Project management and inspection is provided by an engineering firm

Please checkmark box to the left if this report has been reviewed by the FinanceDivision and the funding source has been identified

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RECOMMENDATIONS RESOLUTION

The Engineering and Public Utilities Department recommends entering into a servicingagreement with Goldcorp Porcupine Gold Mines A review of the agreement and finalapproval is required from Council prior to proceeding

DATE November 21 2011

CAOS RECOMMENDATIONS

Comments

DATE APPROVED BY

COUNCIL

RESOLUTION

Luc DuvalDirector of Public Works and Engineering

YES

J Torlone CAO

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CITY OF TIMMINS

BYLAW NO

BEING A BYLAW to authorize the Corporation of the City of Timmins to enter into aServicing Agreement with Goldcorp Porcupine Gold Mines 4315 Gold Mine Road SouthPorcupine Ontario Box 70 PON 1 HO respecting the relocation of existing watermains andthe construction of a two overpass structures on City of Timmins rightofway

WHEREAS it is considered desirable to enter into a Servicing Agreement with GoldcorpPorcupine Gold Mines respecting the relocation of existing watermains and the constructionof an overpass on Gold Mine Road and an overpass on Vipond Road

NOW THEREFORE the Council of the Corporation of the City of Timmins enacts thefollowing as a Bylaw

1 THAT the Corporation of the City of Timmins enter into an Agreement with GoldcorpPorcupine Gold Mines 4315 Gold Mine Road South Porcupine Ontario Box 70PON 1 HO a copy of which Agreement is attached and marked as Schedule A tothis Bylaw

2 THAT the Mayor and Clerk be are hereby authorized to execute this ServicingAgreement on behalf of the Corporation and to affix thereto the Official Seal of theCorporation

READ a first second and third time and passed this

TOM LAUGHREN MAYORCERTIFIED TRUE COPYOF BYLAW NO

CLERK RJ WATSON CLERK

SCHEDULE A

BYLAW NO

MEMORANDUM OF AGREEMENT made in triplicate on this

31VJ14110A

GOLDCORP PORCUPINE GOLD MINES4315 GOLD MINE ROAD

SOUTH PORCUPINE ONTARIOBOX70

PON 1 HO

hereinafter called the Ownerof the First Part

AND

THE CORPORATION OF THE CITY OF TIMMINS220 ALGONQUIN BOULEVARD EAST

TIMMINS ONTARIOP4N 1 B3

hereinafter called the Corporation of the Second Part

A01

AND WHEREAS the Owner agrees to provide the required public works and servicesbefore proceeding with the use of the two overpasses

NOW THEREFORE this Agreement witnesseth that in consideration of the premisesexpressed the parties mutually covenant and agree to as follows

1 The Owner agrees to provide for the relocation of approximately 50 metres of anexisting 300mm diameter watermain complete with hydrant and other associatedappurtenances along Gold Mine Road The watermain complete with hydrant shallbe constructed at the Ownersexpense in accordance with the standards andrequirements of the City as stated in the Manual of Engineering Procedures inSubdivisions Such watermain complete with hydrant shall be as shown onAppendix A The said watermain re location shall be installed by a qualifiedcontractor as approved by the Corporation and shall be at the expense of theOwner A list of qualified contractors that have been approved by theCorporation is shown on attached Appendix C

2 The Owner agrees to provide for the relocation of approximately 70 metres of anexisting 450mm diameter watermain and the relocation of approximately 150 metreof an existing 300mm diameter watermain complete with hydrant and otherassociated appurtenances along Vipond Road The watermain complete withhydrant shall be constructed at the Ownersexpense in accordance with thestandards and requirements of the City as stated in the Manual of EngineeringProcedures in Subdivisions Such watermain complete with hydrant shall be as

2

shown on Appendix B The said watermain relocations shall be installed by aqualified contractor as approved by the Corporation and shall be at the expenseof the Owner A list of qualified contractors that have been approved by theCorporation is shown on attached Appendix C

3 The Owner agrees to provide a minimum of 2 working days notification to theCorporation prior to cutting into any existing watermains

4 The Owner agrees to adhere to City of Timmins protocol procedures for allwaterworks activities associated with this project The Owner shall obtainapproval from the Manager of Public Utilities prior to doing any work on themunicipal watermain

9 The Owner agrees to completely reinstate approximately 60metres of roadwayon Gold Mine Road in accordance to the drawings provided in Appendix A

10 The Owner agrees to construct the new bypass on Gold Mine Road inaccordance to the Ontario Traffic Manual The Owner agrees to post theappropriate speed limit applicable at the new bypass road

11 The Owner agrees to close Vipond Road during the construction of the newoverpass The City of Timmins and local traffic shall be made aware of suchclosure at least 14 days prior to the closure The Owner shall be responsible toinstall message boards at both ends of Vipond Road advising local traffic ofimpending closure The location of the message boards shall be mutuallyapproved

12 The Owner agrees to completely reconstruct approximately 240metres ofroadway on Vipond Road in accordance to the drawings provided in AppendixB All design and signage shall be in accordance to Ontario Traffic Manual

13 The Owner agrees to perform the worksunder the supervision of the designconsultant Testing results shall be required but not limited to compaction of roadsubbases and watermain disinfection All test results shall be submitted to the

Corporation

3

14 The Owner agrees that any road damage associated with the installation of publicworks is the Ownersresponsibility and costs The Owner further agrees that anyworks to repair the damage shall be in accordance with the standards andspecifications currently being used by the Corporation for such works

15 The Owner agrees to contact the Corporation at least 24 hours prior toundertaking any blasting activities

16 The Owner shall provide to the Corporation an estimate of costs for the completionof the all watermain work and all roadway work as identified in Appendix A and BThis estimate shall be reviewed by the Corporation and upon acceptance a Letter ofCredit shall be provided by the Owner to the Corporation for 25 of the amount ofthe approved estimate Once the worksare completed the Owner shall requestthe Corporation to make an inspection of the worksand the Corporation agrees tomake its best efforts to carry out the inspection of the worksswithin thirty 30calendar days the exception being that some works cannot be appropriatelyinspected during winter months Upon the works being inspected and certifiedcomplete by the Director of Public Works and Engineering the Director willauthorize the release of an amount not exceeding 95 of the Letter of Creditassociated with the completed worksThe remaining 5 or such greater amountshall be retained for the warranty period of two 2 years from the date of assumptionby the Corporation and shall be used to make any repairs to such services Furtherthe remaining Letter of Credit shall be released after the two 2 year warrantyperiod

17 The Owner agrees to provide the Corporation asconstructed drawings showing thedetails of all services constructed which may be required by the Corporation formaintaining the said services after acceptance The Owner further agrees to depositwith the Corporation a digital version in a format acceptable to the Corporation Theowner shall also provide georeferencing coordinates for any new water valvestees elbows and fire hydrants It

18 A warranty period of two 2 years will commence upon acceptance of the works bythe Corporation Such acceptance shall be made in writing to the Owner by theDirector of Public Works and Engineering

21 Final acceptance of the works by the Corporation will be made upon satisfactorycompletion and approval of the works and the expiry of the warranty period At suchtime the Corporation will assume all works and services

22 The Owner agrees to perform the works in a timely manner All works shall becompleted by August 1 2013 Failure to honour this date will allow the Corporationto terminate this Agreement or to use the Letter of Credit to complete the watermainand road work as identified in Appendix A and B

23 The Owner agrees to remove all appurtenances associated with both overpassstructures upon completion of mining activities at the Hollinger Project Mine SiteFurthermore the Owner will commit to remove all abutments and level to gradethe area located within the rightofway Any damage to the surrounding publicinfrastructure shall be repaired

in

24 The Owner agrees to remove all appurtenances associated with both overpassstructures should the Hollinger Project never come to materialize From the dateof substantial completion of the overpass structures the Corporation will allow amaximum of 5 years of idle activity from the Hollinger Project Mine Site beforerequesting the removal of the two structures Furthermore the Owner will committo remove all abutments and level to grade the area located within the rightofway Any damage to the surrounding public infrastructure shall be repaired Thisclause will have to be further negotiated with Goldcorp

25 The Owner shall name the Corporation as coinsured with minimum liabilitycoverage of5000000 This coinsurance shall be associated to both overpassstructure and shall be renewed annually until such time that the structures arepermanently taken down

0111 This Agreement and everything herein contained shall enure to the benefit of and bebinding upon the parties hereto and their respective heirs executors administratorsand assigns

IN WITNESS THEREOF the parties have hereto executed this Agreement

Signed Sealed and Deliveredin the presence of Amu

this day of

OWNERI

GOLDCORP PORCUPINE GOLD MINES

THE CORPORATION OF THECITY OF TIMMINS

MAYOR TOM LAUGHREN

CLERKRJ WATSON

APPENDIX A

BYLAW NO

GOLDCORP HOLLINGER CIVIL STUDIES

GOLD MINE ROAD CROSSING DESIGNJLR PROJECT NO 24275 10

CS

C001C201C202

S201

S202

S203E001

E201

E202

APPENDIX B

BYLAW NO

GOLDCORP HOLLINGER CIVIL STUDIES

VIPOND ROAD CROSSING DESIGN

JLR PROJECT NO 24275 10

CS Cover Sheet

C001 Construction notes and SectionsC101 Plan Profile Vipond Road Construction Limit to Station 0060C102 Plan Profile Vipond Road Station 0 060 to Construction LimitS101 Vipond Road Crossing Plan Footing Details and General NotesS102 Vipond Road Head Wall Elevation Section and DetailsS103 Vipond Road Crossing Wingwall DetailsE001 Electrical SpecificationsE101 Vipond Road Tunnel Electrical Duct Bank SectionE102 Vipond Road Tunnel Electrical Details

APPENDIX C

BYLAW NO

List of Qualified Contractors approved by the Corporation

Caron Equipment Inc150 Jaguar DriveTimmins ONP4N 7C3Tel 705 2671280

Fax 705 2646833

Contact Marc Caron

Email caronontlsympaticoca

Chartrand Equipment 450477 Ontario Ltd2401 Airport RoadTimmins OntarioP4N 7C3Tel 705 2680510

Fax 705 2683602

Contact Guy ChartrandEmail quycochartrandequipmentcom

Mascioli Construction Co Ltd359 Cameron St South

Timmins OntarioP4N 3T4

Tel 705 2645262

Fax 705 2671925

Contact Phil MascioliChris DidoneEmail masciol iconstc ntnet