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HomeMy WebLinkAboutCouncil - 2010-08-05 SSPECIAL COUNCIL MINUTES AUGUST 5, 2010 CITY OF KITCHENER A special meeting of City Council was held at 3:05 p.m. this date, chaired by Mayor C. Zehr with all members present except Councillor G. Lorentz. Notice of this meeting had been previously given to all members of Council by the City Clerk pursuant to Chapter 25 (Council Procedure) of the Municipal Code. Council considered Community Services Department report CSD-10-052 (M. Hildebrand / C. Fletcher), recommending cancellation of the Bridgeport Community Centre Renovation and Expansion Project in its current scope and options for reduction in the project scope with or without RInC funding. Mr. M. Hildebrand, Director of Community Programs & Services, advised that the request to cancel the current project stems from challenges related to confusion over which of the City's projects had actually been approved for RInC funding causing a delay in the start of the project; determination that the scope of the project warranted designation of "new development" which requires an extensive approval process, including site plan approval and GRCA approval; and, results of the tender process coming in with the lowest bid substantially over the budget project estimate. Mr. Hildebrand advised that there is no solution at this time that would allow the project to move forward under its current scope. Staff has proposed two options for a reduced scope, with the first based on RInC funding at a total cost of $979,120. and the second without RInC funding at a total cost of $320,250. Mr. Hildebrand advised that staff have contacted Federal /Provincial representatives administering the RInC funding program and have provided them with a description of the work and costs related to the reduced project scope. The amended application will go to a Joint Secretariat meeting for review on August 11, 2010 and subsequently, for final consideration by a Management Committee meeting on August 19, 2010. Mr. Hildebrand stated that approval is required by late August in order to meet the construction completion deadline of March 31, 2011 under the RInC funding program. Mr. Hildebrand advised that staff have met with the Bridgeport Community Association to explain matters concerning the project and to discuss future planning for the Community Centre; and while disappointed, the Association understands and agrees that the project in its current scope cannot go forward. It was further noted that staff have made inquiries to Federal /Provincial representatives to determine if there is potential to transfer remaining RInC funding from the Bridgeport Community Centre project to other eligible City projects. Staff has been advised that the RInC funding agreement does not provide for the transfer of the funds from one project to another, nor is there any senior government policy that would allow this to occur. In this regard, staff is asking that the Mayor correspond with the appropriate Federal / Provincial Ministers to request that they consider reallocation of the funds to other projects that could include: Woodside Park renovations; Breithaupt Centre Pool repairs; and / or, Sportsworld Arena Upgrades. Councillor J. Smola requested clarification of the difference between what was originally proposed and Option 1 (Reduced Scope with RInC Funding). Mr. Hildebrand advised that the reduced scope would focus on interior /exterior renovations to the existing building rather than on a meeting room / gymnasium addition. Councillor J. Gazzola questioned the budget impact of $670,000. Mr. Hildebrand advised that subsequent to the design phase the scope of the project changed such that it was deemed to be "new development", which requires a more extensive approval process. Mr. J. Willmer, Interim General Manager, Development and Technical Services, added that the initial scope of this project included renovations and a small addition that did not require site plan approval. The scope of the project changed to include demolition of a portion of the existing building and replacement with a larger addition, resulting in the designation of "new development". Staff took the position that the City should do what any developer in this situation would be required to do, resulting in substantial increases in project cost but what is considered to be part of the cost of undertaking development. Mr. Willmer added that if the City allowed substandard development it would be of no positive contribution to the community and he maintained that reasonable costs should be borne by the developer and the developer held to a high standard. Councillor J. Gazzola requested clarification of the expenses to date. Mr. Hildebrand advised that these are costs associated with the design of the project, including consultant fees and permits. Councillor Gazzola questioned if Proposal 1 meets what the neighbourhood group originally wanted. Mr. Hildebrand advised that Phase 1 of the original project included a medium size addition which is not included in Proposal 1. It is now planned to add a divider to the existing multi-purpose room to allow multiple events to occur simultaneously and any additional space needs will be discussed with the neighbourhood group and included in consideration of the 10-Year Capital Forecast. Councillor SPECIAL COUNCIL MINUTES AUGUST 5, 2010 - 212- CITY OF KITCHENER Gazzola questioned why the City should go ahead at this time when the new proposal does not even meet the need of the original scope of the project. Mr. Hildebrand stated that if the addition is included, planning approvals will be required and staff is uncertain there is enough time to complete the required process and complete construction of the addition before the March 31, 2011 deadline under the RInC funding program. Mayor C. Zehr inquired what the renovations will do for the Centre and the community. Mr. Hildebrand stated that the renovations will upgrade office spaces and other interior /exterior components of the existing building to bring it to an equivalent standard of most other City facilities; and provide a more welcoming Centre with added flexibility for programming. Councillor Gazzola inquired what would be provided under Proposal 2 and Mr. Hildebrand advised this would focus primarily on the exterior of the building and some interior renovations. Councillor Gazzola inquired as to the feasibility of providing a portable unit on site. Mr. Mario Petricevic, Manager, Project /Energy Management, advised that this also would require site plan and GRCA approvals that would trigger a number of other site upgrades. He stated that there would also be uncertainty that this could be completed in the timeline required for the RInC funding. Mr. J. Willmer added that the site is within the GRCA floodplain and a portable is not likely to be approved as it could present a hazardous mobile obstacle should flooding occur. Councillor C. Weylie questioned if the three projects proposed for transfer of RInC funding are currently in the Capital Forecast. Ms. Cynthia Fletcher, Director of Facilities Management, advised that the projects proposed provide enhancements and / or meet additional requirements of existing projects that are easier to accommodate within the March 2011 timeline. Councillor Weylie questioned what will occur in respect to expenditures to date. Mr. Hildebrand advised that if the project is cancelled the City is obligated to pay for all expenditures to date, noting that Federal / Provincial governments will not cover 2/3 of the costs in this instance. He added, however, that Proposal 1 provides for receipt of senior government funding under a reduced project scope. Mr. Hildebrand also pointed out that not all 3 projects proposed for funding transfer can be accommodated but rather are provided as a potential list to draw from. Councillor K. Galloway questioned how it is proposed to address future space needs within the Capital Forecast. Ms. P. Houston, General Manager, Community Services, advised that future space needs would have to be prioritized within existing Capital projects and suggested that realistically any expansion of the Centre would have to be added late in the Capital Forecast. She added that staff would be looking at all aspects, including whether or not this is an appropriate project for expansion. Mr. Hildebrand also noted that originally the project was to be done in two phases, with Phase 1 originally scheduled to be done in 2009 and Phase 2 scheduled for 2017-18. Councillor Galloway questioned if Phase 2 is still in the Forecast for 2018 allowing it to stay at least on that timeline. Mr. Hildebrand advised that when the project phases were combined and Phase 2 moved forward, it was subsequently removed from the 2018 position in the Capital Forecast. Councillor Galloway requested clarification of the difference in budget estimate compared to the tender results. Ms. C. Fletcher advised that currently a trend is developing, in that, there is substantial increase in available work due to the stimulus funding program and because of the definitive timelines, contracts are not negotiable. Mr. L. Gordon, Chief Purchasing Officer, concurred, advising that in the past 2 to 3 months pricing has escalated while at the same time the number of bidders has decreased. Councillor B. Vrbanovic raised concerns with the amounts applied to general contractor overhead, contingencies and consulting fees, which he suggested appear excessive in light that most of the reduced work is non-capital related. Mr. M. Petricevic advised that these represent approximately 1/3 of the cost. He noted that the work involves extensive renovations for which the expertise of a consultant is required for the design phase and to put together a proper tender package, which is not normally done by staff. He added that 25% of the consulting fee will not be realized by the consultant if the existing project is cancelled, the amount of which would be put toward the new contract. Ms. Lynda Hayward, President, Bridgeport Community Association, commented that the Centre's two program rooms can no longer meet program demand and originally the Association had requested a small to medium size addition to provide for multiple programming events. As a result of public consultation in preparation of a business case, it was determined that the community would also like a gymnasium. She stated that the Association has vacated the existing facility in preparation of pending construction and has arranged for its programming to be continued in 4 differing locations. Staff of the Bridgeport Community Centre have also been let go. She commented that the new plan divides the existing hall and will require events to be acoustically compatible as there is to be no sound proofing. She stated that after 3 years of meetings and planning it appears as though nothing is moving forward; however, the Association does agree that the project in its current scope is too far SPECIAL COUNCIL MINUTES AUGUST 5, 2010 - 213- CITY OF KITCHENER over budget and would not be practical to continue with. Ms. Hayward commented that while disappointing, the City has kept them apprised and has committed to continuing discussions regarding future upgrades for which they are appreciative. Councillor Gazzola questioned if the Association would be happy with the original proposal of a small to medium size addition if this can be accommodated and Ms. Hayward concurred, advising this would allow an increase of up to 50% in their programming. Councillor B. Vrbanovic suggested that frank dialogue between local MP / MPPs, Mayor, Ward Councillor and staff should be undertaken in respect to the issue of transferring funding to other viable City projects. In the interim, he suggested that Council support the proposed reduced project scope, in principle, and direction be given to staff to report back as to the outcome of dialogue with senior government representatives. Ms. P. Houston raised concerns with approval in principle, noting that in discussions with the RInC representative indication was given that the reduced scope as proposed would likely be approved and she suggested this should remain separate from the proposal to request a transfer of funding given the process for the latter could take up to a month or more before any approval may be given. Councillor Smola questioned if including the addition would require the same planning approvals as the larger project scope. Ms. Fletcher advised that it would be dependent on the size of the expansion but pointed out that more of an issue is whether or not construction can be completed by the March 2011 deadline. Councillor Smola questioned what occurred with the original project design and Ms. Fletcher advised that Phase 1 of the original project was discontinued at the concept stage and was not taken to design or tender as combining of the 2 phases changed the scope of the project. Councillor Smola inquired as to the feasibility of completing design work for the original project scope prior to the August 23 meetings of Council. Mr. J. Willmer advised that he could not confirm if it would be possible and reiterated that regardless of whether or not site plan approval would be required there is no time to start a new project and be able to complete same by the March 2011 deadline. Councillor Gazzola advised that he would support the recommendation to cancel the project in its current scope as it is too far over budget but would not support proceeding with the proposed options for a reduced scope as neither provides for the needs of the Association as originally identified. Councillor Smola agreed, adding that he would like staff to find a means to fund the addition as originally proposed. Mayor C. Zehr cautioned that a decision is required to move forward and raised concerns that if Council delays in order to address funding the addition it may result in loss of the RInC funding, leaving the City to pay full costs. Mr. Hildebrand suggested that the addition could be included in the application for the reduced project scope but reiterated the concern remains whether or not construction could be completed within the March 2011 deadline. Councillor Vrbanovic suggested that staff be directed to bring a report back in one week as to an approach that could be taken to address construction of an addition. Mayor Zehr questioned if the renovations outlined in the two proposals would still be required in the event the addition proceeds. Mr. Hildebrand advised that exterior renovations would still be required but could not say conclusively concerning interior renovations as it is not known at this time how the addition would interact. Mayor Zehr questioned the timing of senior government meetings relative to application approvals. Ms. Jaya Chatterjee advised that the Joint Secretariat meets every week; however, the Management Committee who provides final approval meets every 3 to 4 weeks. She stated that the next Joint Secretariat meeting is August 11 and the Management Committee meeting is August 19; and should the City miss the August 11 meeting the application would then be delayed by at least another month. Councillor K. Galloway suggested that the City should move forward now and make the addition a priority in the Capital Forecast budget deliberations, raising concerns that time taken to include the addition now may result in the Community Centre losing out altogether. Moved by Councillor J. Smola Seconded by Councillor J. Gazzola "That work on the Bridgeport Community Centre Renovation and Expansion Project be stopped and the project, under its current scope, be cancelled." Carried Unanimously. SPECIAL COUNCIL MINUTES AUGUST 5, 2010 - 214- CITY OF KITCHENER A motion by Councillor B. Vrbanovic, seconded by Councillor J. Smola, was then brought forward for consideration to provide that staff report back on August 12, 2010 to a special Council meeting as to how the original concept of a medium sized room addition for the Bridgeport Community Centre can be accommodated in conjunction with the renovations /upgrades planned as part of the reduced project scope; and that a request be made to appropriate Federal and Provincial Ministers as to the potential to reallocate the remaining Bridgeport Community Centre RInC funding to projects as outlined in CSD-10-052. Mayor C. Zehr asked that the staff report include information as to the next cycles of Federal meetings so as to understand any timing implications. Ms. Fletcher advised that if a new application is to be submitted following the August 12 meeting, final approvals would not be received until at least the end of September. Mr. Hildebrand clarified that if Council chooses, they could still indicate a reduced scope in the current application and subsequently change what that scope is if decided to pursue an addition. Councillor Galloway asked that staff include financial implication to the City if not all RInC funding is approved. Mayor Zehr suggested, and it was agreed, to add to Councillor Vrbanovic's motion the 2nd paragraph of the staff recommendation, as modified to delete the phrase "to include the internal renovations and upgrades, as outlined in report CSD-10-052". Moved by Councillor B. Vrbanovic Seconded by Councillor J. Smola "That staff reduce the Bridgeport Community Centre project scope, keeping within the current CC funding envelope allotted for the facility renovation and expansion after incurred expenses, pursuing RInC funding for the reduced scope project; and, report back on August 12, 2010 to a special Council meeting as to how the original concept of a medium sized room addition for the Bridgeport Community Centre can be accommodated in conjunction with the renovations / upgrades planned as part of the reduced project scope; and further, That should it be required, 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 Community Services Department report CSD-10-052." Carried Moved by Councillor B. Vrbanovic Seconded by Councillor K. Galloway "That leave be given the Mover and Seconder to introduce a by-law to confirm all actions and proceedings of the Council and that the same be taken as read a first, second and third times, be finally passed and numbered 2010-136 by the Clerk." Carried On motion the meeting adjourned at 4:25 p.m. MAYOR CLERK