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HomeMy WebLinkAboutCSD-10-052 - Bridgeport Community Centrek~T R Community Servires REPORT REPORT TO: DATE OF MEETING: SUBMITTED BY: PREPARED BY: WARD(S) INVOLVED: DATE OF REPORT: REPORT NO.: SUBJECT: RECOMMENDATION: Special Council Meeting August 5, 2010 Mark Hildebrand, Director Community Programs and Services Cynthia Fletcher, Director Facilities Management Mark Hildebrand, Director Community Programs and Services All July 28, 2010 CSD-10-052 Bridgeport Community Centre Renovation and Expansion Project That work on the Bridgeport Community Centre Renovation and Expansion Project be stopped and the project, under its current scope, be cancelled; and, That staff reduce the Bridgeport Community Centre project scope to include the internal renovations and upgrades, as outlined in report CSD-10-052, keeping within the current CC funding envelope allotted for the facility renovation and expansion after incurred expenses, and pursuing RInC funding for the reduced scope project; and, That staff address the future facility space needs of the Bridgeport Community as part of the 2011-2020 capital budget forecast; and further, That the Mayor make a request to the Minister of Energy and Infrastructure and Minister of Health Promotion that consideration be given to reallocating the remaining Bridgeport Community Centre RInC funding to the projects as outlined in report CSD-10-052. BACKGROUND: The Bridgeport Community Centre (BCC) is a 5,454 sq. ft. facility that has been in operation in the City of Kitchener since 1970. In 2008 a business case was completed to determine the short and long term needs of the community and whether the current facility could meet these needs now and into the future. Research and public input indicated that a gap existed between the type of facility that is currently in place and the needs of the community. It was determined that, considering the current space, a renovation and expansion to include a single gymnasium, an additional medium sized meeting/activity room, additional storage, additional office space and an improved lounge and lobby area were significant needs for the community. Due to funding challenges, the renovations and expansion were proposed in two phases and placed into the 10 year capital forecast. The first phase included a small expansion and renovation while the second phase, further into the 10 year forecast when resources could be allocated, included a larger gymnasium renovation and expansion. The implementation of the RInC program by the Provincial/Federal governments provided an opportunity for both phases of the project to be completed at the same time in 2010/2011. Staff applied for, and was awarded, $1.4 million under the RInC program to complete the entire renovation and expansion of the facility. The City of Kitchener's contribution to this project is $850,000 ($557,830 C/C and $292,170 D/C). REPORT: Since the application of the project for RInC funding, staff has been working hard to overcome several challenges, which have threatened the City's ability to complete the project, within the deadline period, and on budget. Below is a summary of the challenges that staff have experienced. Project Initiation was delayed due to inconsistent information Staff made the initial application for RInC funding in May 2009. In June 2009 there was a public announcement made indicating that the City was successful in the RInC funding applications submitted for the Sportsworld Arena Upgrade project and the Aquatic Facility Upgrade project. Confusion resulted when in July 2009 a letter was received from the Federal Minister of Industry and the Provincial Minister of Energy and Infrastructure indicating that the Sportsworld Arena upgrade and the Bridgeport Community Centre Expansion were approved. Staff was unclear about which project, the Bridgeport Community Centre, the Aquatic Facility Upgrades, or both, were approved. Clarification of this inconsistency was not provided until August 2009 and as a result the Project initiation was delayed by two months. Although staff had to compress the project timelines by two months in order to meet the funding deadlines of March 2011, it was felt that project completion was possible if there were no other significant delays. Project Designation changed from existing development to new development The 2008 Business case identified that the Bridgeport Community Centre was located in the GRCA regulatory floodplain, and any expansion was subject to the policies contained in the GRCA's "Policies for the Administration of the Development, Interference with Wetlands and Alterations to Shorelines and Watercourses Regulation" (Ontario Regulation 150/06), as well as the City of Kitchener's land use policies and regulations. During the development of the business case, general discussions were held with GRCA staff and City of Kitchener planning staff regarding the required facility renovation and maximum expansion permitted at this site, to ensure that the project as understood at the time could be completed. It was understood that an expansion would be in compliance with the Official Plan and the Bridgeport East Secondary Plan if appropriate GRCA approvals were obtained. At the time, the project was believed to be designated as "existing development below the regional flood-line". However when more detailed drawings of the renovation and expansion were submitted and reviewed by City of Kitchener planning staff, it was determined that the scope of the project warranted the designation of "new development" rather than "existing development". This designation required staff to engage in extensive discussions in order to receive GRCA and planning approvals as well as approval from Committee of Adjustment to move the project forward. Additional discussions with GRCA resulted in a delay of approximately one month to the project. To compensate for the delay, staff reviewed and adjusted the project timelines to ensure that we would be able to start facility construction on schedule. In addition to the necessary approvals, the designation of new development brought a number of planning and engineering requirements, which have significant budget impacts. Within the property line, new storm-water management requirements (e.g. re-grading the site, installation of catch basins etc.) are expected to impact the budget by approximately $300,000. In addition to this, there is now a requirement to add services to the road right of way (e.g. storm sewers, a new hydrant, water main connection) at an estimated cost of $370,000. The total budget impact of the new requirements is estimated to be $670,000. Tender Closure Over-expenditure The project currently has a construction budget of $1.65 million before taxes. On July 22nd 2010 at tender closure, staff received four bids. Unfortunately the lowest bid was $2.06 million resulting in a $410,000 over-expenditure in the construction budget. Considering the existing impact of the engineering and planning requirements of $670,000, the total project over- expenditure is currently $1.08 million. While staff has managed to accommodate for the majority of the challenges to date and, up until the tender closure date, have been able to keep the project on schedule, it has been concluded that the accumulated over-expenditure is too significant to resolve within the existing tight timelines, and therefore the cancellation of the project, at its current scope, is being recommended. As of Monday July 26th, 2010, all aspects of the project have been placed on hold. It is important to note that this further delay directly affects the work that can be completed on site. As a result, it will not be possible to complete construction by the March 31, 2011 deadline. In light of this recommendation, staff is proposing a reduced scope of work to the Bridgeport Community Centre facility to address some immediate community and facility needs. A request has been made to the Federal and Provincial governments to help fund the reduced scope of work through RInC. Staff have put together two renovation plans; one that reflects RInC funding as well as a second which considers renovations if we only have access to the C/C envelope of $330,000 (C/C envelope net of costs incurred during the project including encumbrances). The following internal renovations and upgrades are being proposed under the reduced scope: 1. If RInC funding is granted Proposed Renovations Estimated Costs Building Exterior Surrounding Property Building Interior (paint, flooring etc.) Entrance and Hallway Office Area Washrooms Meeting Room/Storage Rooms Main Multipurpose Room Kitchen/Bar Areas Utility Rooms/HVAC General Contractor Overhead, Contingencies, Consulting fees Estimated Cost reduced scope: Expenses Incurred to date Including Encumbrances: Total Costs: $ 755,250 $ 223,870 $ 979,120 $69,000 $70,000 $153,000 $12,500 $20,500 $6,000 $19,000 $52,000 $90,500 $11,000 $251,750 Proposed Split: $ 652,750 - RinC funding; $ 326,370 -City of Kitchener RInC Approval Required by: Mid August, 2010 If RInC funding is approved for the reduced scope of work for Bridgeport Community Centre, the remaining balance in the C/C envelop will be approximately $230,000 after the City of Kitchener's contribution of 1/3 to the project. 2. If RInC funding is not granted Proposed Renovations Estimated Costs Building Exterior $69,000 Surrounding Property $7,000 Building Interior (paint, flooring etc.) $88,000 Entrance and Hallway $4,500 Office Area $5,000 Kitchen/Bar Areas $40,000 General Contractor Overhead, Contingencies, Consulting fees $106,750 Estimated Cost: $320,250 Proposed Funding: $320,250 would be funded out of the current project budget C/C envelope net of costs incurred from the project, including encumbrances ($330,000). Approval Required by: RInC funding approval is not required. Long term community space needs To address the long term space needs of the Bridgeport Community, staff will review the existing business case, consider all new information regarding the existing site of the Bridgeport Community Centre, and refer any long term facility needs to the 2011 - 2020 capital budget forecast. Transferring RInC funds to other projects Staff has contacted Provincial and Federal Government representatives to discuss the possibility of transferring the remaining RInC funding from the Bridgeport project to other eligible projects within the City. The City of Kitchener has been informed that the RInC funding agreement does not permit a transfer of funds from one project to another, nor is there currently any policy in place at the Federal/Provincial level to allow for this. Therefore staff is recommending that the Mayor contact the appropriate Federal and Provincial Ministers and ask them to consider reallocating the funds to other projects. The possible projects that could be considered include: 1. Woodside Park Renovation Project Description: The re-development of Woodside Park to a high quality sport complex consisting of two artificial turf fields. Work would include removal of the existing ball diamond, new field installation, parking lot upgrades and site furnishings/ stands. Estimated cost: $1.2 Million; 2 3 Proposed split: $747,000 - RInC funding; $80,000 -Kitchener Youth Soccer Club; $373,000 -City of Kitchener Proposed funding: Staff are proposing to fund the City of Kitchener's portion of this project ($373,000) from the Park's Dedication Fund, to be repaid over the payback period from additional revenues realized. RInC approval required by: End of August, 2010 Breithaupt Centre Pool Project Description: Original RInC application was approved to address pool piping replacement, concrete repairs and waterproofing to deal with micro cracks found in the pool tank. Investigation found that there was extensive damage to the concrete sections of the pool tank at the point where the pool tank walls meet the floor. The concrete in some of these sections have fallen away to the point that the rebar supports are exposed. This application will address costs associated with fixing these additional tank structural issues that are outside the scope of the original project. Estimated cost: $150,000; Proposed split: $100,000 - RInC funding; $50,000 -City of Kitchener Proposed funding: Staff is proposing to fund the City of Kitchener's portion of this project ($50,000) from the remaining funds in the C/C envelope of the Bridgeport Community Centre Project. RInC approval required by: By Mid November, 2010 Sportsworld Arena Upgrades Project Description: Address an over expenditure associated with the building upgrades to the Sportsworld Arena Complex. Tenders came in higher than estimated costs for this project. Upgrades include improvements to the operating equipment and systems including HVAC, electrical, lighting and building control systems; rehabilitation of rubber flooring in change rooms, hallways, official's rooms and first-aid rooms; and addition of snow melting equipment. Estimated cost: $150,000; Proposed split: $100,000 - RInC funding; $50,000 -City of Kitchener Proposed funding: Staff is proposing to fund the City of Kitchener's portion of this project ($50,000) from the remaining funds in the C/C envelope of the Bridgeport Community Centre Project. RInC approval required by: By end of August, 2010. It should be noted that, due to the lack of policy to deal with transferring grant dollars from one project to another, it may be difficult to get the necessary approvals in time to move forward on the above proposed projects and meet the RInC program deadline in March 2011. Bridgeport Community Association Consultation Recognizing that the Bridgeport Community Association is a significant partner in this project, and is represented on the project team, staff met with them prior to the special meeting of council, to provide details about the recommendation, discuss the business case and future planning, and provide them with the opportunity to attend this meeting. Further meetings will be scheduled with the Community Association upon further direction. FINANCIAL IMPLICATIONS: The following is a Project Year to Date Budget with encumbrances as at August 4, 2010. Total Revenues YTD Actual Budget Variance Encumbrances Contribution from Capital (557,830) (544,000) (13,830) Contribution from Development Charges (292,170) (306,000) 13,830 Contribution from Province (25,000) (700,000) 675,000 Contribution from Federal (25,000) (700,000) 675,000 Total Revenues (900,000) (2,250,000) 1,350,000 Expenses Construction Expenses 187,850 2,250,000 (2,062,150) 36,020 Total Project (Surplus) Deficit (712,150) 0 (712,150) If staff receive direction to reduce the scope of the Bridgeport project and implement internal renovations and upgrades, the maximum amount the City of Kitchener will be able to contribute from the project budget will be approximately $330,000 (C/C envelope net of costs incurred including encumbrances). ACKNOWLEDGED BY: Pauline Houston, General Manager, Community Services