HomeMy WebLinkAboutDTS-10-156 - Civic District Parking Structure DebentureREPORT
REPORT TO:
Finance & Corporate Services Committee
DATE OF MEETING:
August 23, 2010
SUBMITTED BY:
John McBride, Director of Transportation Planning
PREPARED BY:
John McBride (741-2374)
WARD(S) INVOLVED:
Ward 1
DATE OF REPORT: August 19, 2010
REPORT NO.: DTS-10-156
SUBJECT:
CIVIC DISTRICT PARKING STRUCTURE DEBENTURE
RECOMMENDATIONS:
That Council authorize an increase in the maximum amount to be debentured for the Civic
District Parking structure from $2,195,000 as per the original business case and approved
capital budget forecast to $5,803,282 in 2011; and further,
That Council consider the potential to reduce the actual amount of the debenture through the
allocation of parking development charges as part of the 2011 budget process.
BACKGROUND:
Council approved the expansion and renovation of the existing Main Library in October 2008. In
addition, in March 2009 Council approved the construction of a 412 space, three level,
underground parking garage to address the Library's parking needs and the parking needs of
our partners, which include the Region of Waterloo and the Ministry of the Attorney General.
With Council’s approval, the design contract was awarded to Levitt Goodman Architects in
association with The Walter Fedy Partnership and Phillip G. Carter Architect in May 2009.
Previous construction cost estimates presented to Council have been based on 50% detailed
design as prepared by Hanscomb Limited.
The purpose of this report is to request funding approval of the Civic District Parking Structure
based on the tender amount.
REPORT:
The consortium of Levitt Goodman Architects, Phillip G. Carter Architect and The Walter Fedy
Partnership was chosen for the Library and garage design. Tenders have closed and a
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recommendation for award will be brought to the September 7, 2010 Council meeting for
consideration.
While the original budget identified in the business case projected a cost of $18,540,000 it
became apparent during the detailed design that costs would rise due to four significant factors
which included:
The development of two access ramps to accommodate the linear nature of the garage
and future expansion
Expanded stairwells/elevators to accommodate users ultimate destinations but also peak
vehicular and pedestrian flows from the Centre in the Square
Significant infrastructure relocation due to spanning Ahrens St. This includes major
electrical conduits, storm and sanitary sewers, fibre optic cable and both new and
relocated LEED infiltration chambers.
Extensive shoring requirements to protect the historic Gaol Wall and existing Library.
In April a report, DTS 10-046, was brought forward for Councils information based on 50%
detailed design. The construction estimate anticipated the total cost of the structure to be
$21,690,591 compared to the business case estimate of $18,540,000. The debenture was
estimated to be $4,580,884. Also not included was the impact of HST which is in excess of
$400,000.
The total construction estimate and relative split between the Library portion of the construction
and that of the parking garage was identified by our cost consultants and formed the basis of
the revised budget. Increased costs in the tender are a result of higher concrete prices as well
as a variation in the split between the Library and the parking garage. In light of the tender
results, at its meeting August 18, 2010, the Library Board reallocated funds within its approved
project budget, adjusting its parking garage budget by $440,000.
Included in the original design was the construction of a surface parking lot at Scott and Weber
Sts as well as the extension of surface parking in Lot 19 towards the Centre in the Square. The
purpose of these two surface lots was to help minimize the impact of reduced parking during
construction, to accommodate entrance and exit ramps, define future building sites and better
define pedestrian pathways. While it will be advantageous and was planned to construct these
surface lots in advance of the start of construction, we can not afford them at this time.
The construction of the surface lot at Scott and Weber Sts will be cancelled and the extension of
the surface parking in Lot 19 will be deferred until 2012 to be coordinated with the
reconstruction of Otto St which will reduce the costs by approximately $50,000. This will create
challenges in the provision of parking and may result in the cancellation of some monthly
parking for customers who are not prepared to relocate to other City facilities during
construction. City and Regional staff will work together to accommodate Police vehicles that are
displaced during construction.
FINANCIAL IMPLICATIONS:
Based on the low tender and the split of construction costs between the Library and Garage
components of this project as calculated by the general contractor, the cost of the Civic District
Parking Garage will be as follows.
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Construction $21,410,000
Architectural/Engineering fees 681,600
Public art @ 1% 214,100
Project Management @ .75% 160,575
Bell/Atria 100,000
Contingency @ 5% 1,070,500
Sub total $23,636,775
HST @ 1.76% 416,007
Total $24,052,782
Funding for this project will be provided from the following sources.
Provincial cash in lieu payment $7,000,000
KPL contribution 5,285,000
Regional purchase of 100 spaces 5,264,500 *
Regional generator 700,000
Parking debenture 5,803,282
Total $24,052,782
* The Regional purchase of parking spaces is scheduled to be considered by Regional
Administration and Finance Committee on Sept 7, 2010.
Note: A portion of this debenture may be offset by the application of DevelopmentCharge
funds. The exact amount will be determined as part of the 2011 budget review.
The additional design elements and the estimated split by the general contractor between the
construction of the Library and garage have increased the anticipated total cost of the parking
structure to $24,052,782 compared to the business case estimate of $18,540,000. The City
anticipates funding $18,249,500 of the capital cost out of direct capital contributions and cash-
in-lieu of parking revenues, leaving $5,803,282 to be financed by the City of Kitchener through
the issuance of a debenture in 2012 compared to the initial estimate of $2,195,000. It is
estimated that the increased costs of constructing the Civic District Garage will result in an
additional levy impact of approximately 0.27%.
CONCLUSION:
The construction of the Civic District Parking Garage will allow the City to meet its obligations to
the Province in the provision of 200 parking spaces in the new Provincial Courthouse, the
parking generated by the Library expansion, the parking generated by Regional offices as well
as event parking related to the Centre in the Square.
With the approval of this debenture and the award of the tender, construction on the parking
garage will commence in late 2010 and be completed by the fall of 2012.
ACKNOWLEDGED BY: Jeff Willmer, Interim General Manager
Development and Technical Services
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