Mill woods Double Barrel-SESS SA1B/C Project

Project History and Status (M. Nickel)

Recommendation:
That the February 26, 2016, Integrated Infrastructure Services report CR_3326, be
recieved for information.
Report Summary
This report provides information and history on the Mill Woods Double Barrel
Replacement/SESS SA1B project, summarizes the challenges encountered and
the actions that were taken, and provides an estimate of the total project costs, a
recommended budget increase and the final completion schedule.
Previous Council/Committee Action
At the October 20, 2015, City Council meeting, Councillor M. Nickel made the following
inquiry:
The Mill Woods Double Barrel-SESS SA1B Project involves the construction of a
major storm trunk to form the backbone infrastructure to mitigate flooding in the
Millwoods area, thereby involving the construction of a major sanitary trunk along 91
street (10 avenue to 28 avenue). A portion of this project also includes work along 23
avenue and 85 street.
Originally planned for completion by 2014 with a budget of $56.9 million, the cost of
the Mill Woods Double Barrel has escalated to a currently approved budget of $90.1
million and is projected to be completed in 2016.
Given these drastic cost and scheduling escalations, I would like Administration to
provide a report on the following:
1. A brief history of the overall projects from its inception, this is to include
the engineering rationale for this line and the underlying rationale of this projects
original budget.
2. What has been done to understand the current nature and severity of the problems
associated with this project of which shall include:
a. Worse than anticipated ground conditions
b. Resulting reduction in tunneling productivity
c. Changes in construction methods
d. Additional geotechnical testing, project scope changes, and repair issues caused
by poor supporting soil conditions

ROUTING Utility Committee | DELEGATION - A. Laughlin, T. Wyman

February 26, 2016 Integrated Infrastructure Services CR_3326
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Mill woods Double Barrel-SESS SA1B/C Project - Project History and Status
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3. As there have been at least three budget adjustment requests, what is the
anticipated total overall costs of this project and what will be its firm
completion/opening date?
Report
The Mill Woods Double Barrel Replacement/South Edmonton Sanitary Sewer Stage
SA1B project was approved by Council under Capital profile 08-31-9202. The project
scope includes two components: the Mill Woods Double Barrel Replacement and the
South Edmonton Sanitary Sewer Stage SA1B. With a collective budget of $90.1 million,
this is one of the largest and complex capital drainage projects undertaken by the City
of Edmonton in over 35 years. The South Edmonton Sanitary Sewer Stage SA1B
project was completed on schedule and within the allocated budget.
Mill Woods Double Barrel Replacement ($74.6 million) - Project History
As a result of the significant rainfall events in July 2004, over 400 homes within the Mill
Woods area were flooded, prompting engineering studies to be commissioned to
assess the causes of flooding and to develop a flood mitigation program in Mill Woods
and other areas of the City. Studies determined that in order to reduce the risk of
flooding, the capacity of the existing double barrel trunk sewer in Mill Woods needed to
be increased as the primary conveyance system to support neighbourhood drainage
improvements. The existing Mill Woods Double Barrel carries sanitary and storm sewer
flows in isolated chambers within the same pipe. Attachment 1 shows the location of
the new trunk sewer, the neighbourhoods with ongoing and planned flood mitigation
projects, and the ultimate area where flooding will be mitigated when all of the projects
are complete.
The solution for increasing the existing stormwater capacity was to construct a new
storm trunk to accommodate the stormwater flows and to convert the double barrel pipe
to convey only sanitary flows. This approach formed the basis of the Mill Woods Double
Barrel Replacement project. Attachment 2 shows the alignment and diameter of the
new storm trunk, which runs from Gateway Boulevard/30 Avenue to 85
Street/Knottwood Road. This is also the same alignment for the existing double barrel
pipe. Key stages of the project include:

Conceptual design (as part of an overall Mill Woods flood relief program) (2006)
Design Build of tunnel and storm sewer connections for:
o 30 Avenue (2009)
o 91 Street (2011)
o 23 Avenue (2012)
o 85 Street (2013)
o Converting existing double barrel into a full sanitary sewer (2013)

Once the Mill Woods Double Barrel Replacement and neighbourhood flood mitigation
infrastructure projects are completed, flooding risks will be reduced and the associated
neighbourhoods will be provided a storm system designed for a 1 in 100 year event.

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Mill woods Double Barrel-SESS SA1B/C Project - Project History and Status
(M. Nickel)
The conceptual design completed in 2006 did not include details related to connections
between the Mill Woods Double Barrel and neighbourhood feeder pipes or detailed
geotechnical analysis. The detailed design process was initiated in 2007 and included
geotechnical and formal risk assessments by external consultants. Boreholes were
taken along the proposed alignment of the new storm trunk sewer with an average
spacing of about 130 metres. Typically borehole spacing varies between 90 and 200
metres.
This initial geotechnical investigation identified soil conditions as predominantly clay till
and bedrock material, and previous experience tunneling in these conditions have been
positive. There are risks with glacial till as it is known to contain random water bearing
sand layers and various sized rocks that could impede tunnel progress.
The initial budget of $41.4 million was approved based on estimates developed in the
2006 conceptual design, historical tunnel cost information, and historical productivity
rates. As the design and construction progressed along the 30 Avenue and 91 Street
tunnels, it was determined that the conceptual estimate was insufficient and the budget
was adjusted to $56.9 million. As the initial budget was developed based on a
conceptual design, the complexity and the costs of connections were not fully
understood and were underestimated. Given the lack of geotechnical information
available at the time, the productivity rates were also underestimated for soil conditions
that were actually encountered.
Challenges
The challenges with the Mill Woods Double Barrel portion of the project are primarily
attributed to lack of details during conceptual budget development and unanticipated
ground conditions.
Scope Definition
In-house tunnel construction such as the Mill Woods Double Barrel Replacement
typically follows a design-build approach in which the conceptual design is developed,
followed by the detailed design and construction occurring concurrently. This approach
offers efficiencies and schedule compression by allowing components of construction to
start when enough details have been developed. As construction progresses, the
remaining design is completed. Under a design-bid-build model, the design is
completed in full prior to construction being initiated. Additionally as this tunneling work
is completed with internal resources, all risks are assumed by the City compared to
using an external contractor where a significant portion of the risk is transferred.
The overall sequence of events for in-house design and construction are: conceptual
design progressing into design-build.
Conceptual design - During conceptual design, service levels are defined and different
alignment options are evaluated. Once a preferred alignment is selected, conceptual
estimates are developed predominantly based on historical data and the experience of

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Mill woods Double Barrel-SESS SA1B/C Project - Project History and Status
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design and construction staff. Capital profiles are typically developed based on the
conceptual estimates including the Mill Woods Double Barrel Replacement.
Design-build - During initial design, geotechnical investigations are performed,
alignments/shaft locations/structure configurations are refined, project constructability is
validated, and more detailed risks are assessed. Once these elements are completed,
detailed design is initiated and some portions of construction begin. Detailed design and
construction activities overlap through the progression of the project.
A cost estimate was developed in concept design and a capital budget was submitted
prior to any detailed assessment of the neighbourhood connections from the new storm
trunk to the existing system. As the detailed design was developed, it was determined
that the complexity and scope of the connections were underestimated, resulting in
increases to both the costs and the time to complete these connections from the original
budget submission. Through the 2013 Supplementary Capital Budget Adjustment
process an additional $15.5 million was requested for a total of $56.9 million for the Mill
Woods Double Barrel Replacement project.
The development of the new Integrated Infrastructure Services department will help
address this issue by integrating the concept development and build functions to better
inform scope definition at the concept phase. In addition, based on the scale and
complexity of projects, designs will be developed in more detail prior to capital budget
submissions to help address the variability between approved budgets and actual costs.
Soil conditions
The Mill Woods Double Barrel Replacement project encountered significant
geotechnical challenges near the intersection of 91 Street and 23 Avenue. As the
construction of the project proceeded along 91 Street approaching 23 Avenue, the
tunnel excavation experienced poor soil conditions consisting of wet running sand. Soil
movement at 23 Avenue also caused significant damage to the recently completed
South Edmonton Sanitary Sewer Stage SA1C. Repairs to the South Edmonton Sanitary
Sewer Stage SA1C were included in the Mill Woods Double Barrel Replacement project
costs. Mitigation measures were developed and implemented as each issue was
encountered. Attachment 3 provides a more detailed chronology of the issues and
mitigation measures.
Utilizing the iterative approach in the design build methodology the first mitigation efforts
included reducing water levels within the wet sand and performing additional
geotechnical investigations to delineate the limits of the wet sand. Following these
efforts, tunnel excavation continued and the tunnel alignment was ultimately modified to
curve from 91 Street to 23 Avenue to avoid the poor soil conditions at 23 Avenue.
Tunnel excavation once again was halted to address a void created by wet sand in front
of the tunnel boring machine. The void was filled and excavation was able to continue
until the tunnel boring machine was damaged by a boulder and was flooded with wet
sand. Efforts were taken to stabilize the ground in front of the machine, however, the

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damage did not allow tunneling to continue. Additional geotechnical investigations along
23 Avenue and ground stabilization designs were initiated once the tunnel machine was
damaged. In an effort to minimize schedule impacts, an alternate method of using inhouse sequential hand tunneling construction combined with ground stabilization of the
soil was initiated. Construction work proceeded along 23 Avenue in conjunction with the
ground stabilization design. The hand tunneling method was successful for a portion of
the 23 Avenue tunnel, however unsafe conditions prevented the hand tunneling from
continuing. As a result of the challenging soil conditions between 91 Street and 23
avenue, the unsuccessful attempts with City construction technology and additional
geotechnical details a contractor was retained to implement a tunneling technology
specific to variable wet sand conditions. Concurrently, in-house tunnel resources
continue construction on the remaining portions of the project.
As part of the 2015-18 Capital Budget process, an additional $17.7 million was
incorporated into the project to address the additional costs required to address the soilrelated issues encountered. This revised the total Mill Woods Double Barrel
Replacement project budget from $56.9 million to $74.6 million. A detailed review of the
projects remaining scope has identified additional risks and construction costs of $6.4
million associated for the remaining work. The final actual costs may be lower as an
insurance claim may recover costs associated with the damaged tunnel boring machine.
Administration will include this budget request in the Spring 2016 Capital Budget
adjustment for Councils consideration. The additional budget increase of $6.4 million
would be debt financed over 25 years and will have minimal impact to Drainage Utility
rates.
Project Costs and Schedule
As a result of the conceptual scope definition and the challenging soil conditions the
initial budget and schedule were not reflective of the actual needs associated with the
complexity of the Mill Woods Double Barrel project. The iterative approach utilized to
deliver the project has necessitated the need for budget and schedule adjustments
throughout the project. Costs associated with this project to-date are as follows:
$41.4
million
Supplemental Capital Budget adjustment (2013) - Mill Woods Double Barrel $15.5
Replacement, related to budget development
million
2015-18 Capital Budget process - Mill Woods Double Barrel Replacement,
$17.7
related to soil conditions and connection complexities
million
Additional budget to be requested through Spring 2016 Supplemental Capital $6.4
Budget Adjustment
million
$81.0
Total Required Budget - Mill Woods Double Barrel Project
million
Original Budget - Mill Woods Double Barrel Project

Total Budget - South Edmonton Sanitary Sewer Stage SA1B

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$15.5

Mill woods Double Barrel-SESS SA1B/C Project - Project History and Status
(M. Nickel)
million
Total Overall Budget (Mill Woods Double Barrel Project + South Edmonton
Sanitary Sewer Stage SA1B)

$96.5
million

The original schedule for the completion of the Mill Woods Double Barrel Replacement
project was December 2013. The estimated milestone dates for the remainder of the
project are:
30 Avenue
85 Street (excluding surface restoration)
23 Avenue (excluding surface restoration)
91 Street
Convert existing double barrel into a full sanitary sewer
Site and surface restoration

Complete and in service

August 2016
December 2016
January 2017
March 2017
August 2017

As the project continues, Administration will continue to look for ways to complete the
project ahead of the revised schedule.
Lessons Learned
Based on the experience for this project, a number of actions will be implemented to
help mitigate similar issues in the future, including:

Developing budgets to an appropriate level based on complexity and scale of the

project
Regular communication to Council and citizens on the status of the project and
more frequent updates when experiencing issues
Assessing the amount of geotechnical investigation required for tunnel projects
Risk-based decision making process to select the appropriate construction
methodology

Budget/Financial Implications
The original approved budget was $56.9 million (Mill Woods Double Barrel
Replacement $41.4 million, South Edmonton Sanitary Sewer SA1B $15.5 million). Mill
Woods Double Barrel Replacement budget adjustments of $15.5 million and
$17.7 million were approved as part of the 2013 Supplemental Capital Budget
Adjustment and the 2015-18 Capital Budget, respectively. These adjustments bring the
total approved budget to $90.1 million (Mill Woods Double Barrel Replacement
$74.6 million, South Edmonton Sanitary Sewer SA1B $15.5 million).
Administration is recommending through the Spring 2016 Capital budget Adjustment
that the budget for the Mill Woods Double Barrel Replacement project be increased to

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Mill woods Double Barrel-SESS SA1B/C Project - Project History and Status
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$81 million in order to complete the project. This would increase the entire capital
profile, including the South Edmonton Sanitary Sewer SA1B projects, to $96.5 million.
Attachments
1. Mill Woods Flood Mitigation Program
2. Mill Woods Double Barrel New Storm Trunk Alignment
3. Issues and Mitigation Chronology
Others Reviewing this Report

T. Burge, Chief Financial Officer and Treasurer and Acting General Manager,
Corporate Services.
D. Wandzura, General Manager, Transportation Services

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