HomeMy WebLinkAboutFCS-10-001 - Stimulus Project Update December 2010REPORT TO:Financial & Corporate Services Committee
DATE OF MEETING:
December 13, 2010
SUBMITTED BY: Dan Chapman, Deputy CAO & City Treasurer
PREPARED BY:
Jaya Chatterjee, Junior Financial Analyst, Financial Planning
WARD(S) INVOLVED: All
DATE OF REPORT: December 8, 2010
REPORT NO.:
FCS-10-001
SUBJECT:
STIMULUS PROJECT UPDATE - DECEMBER 2010
RECOMMENDATION:
That applications be submitted to extend completion deadlines from March 31, 2011 to October
31, 2011 for the following Infrastructure Stimulus Fund and Recreational Infrastructure Canada
Fund projects:
McLennan Park Development
Upgrades to Harry Class Aquatic Facility
Upgrades to Wilson/ Kingsdale Aquatic Facility; and further
That, for projects receiving deadline extensions, the City of Kitchener acknowledge that the
projects will be completed and costs incurred after October 31, 2011 (if any) will be the City’s
sole responsibility.
BACKGROUND:
This report is part of a series of bi-monthly updates to the Finance and Corporate Services
Committee on the status of the City’s infrastructure stimulus projects. This reflects a
commitment to ensure that infrastructure funds are spent in an open, transparent, and
accountable manner and that Council is afforded an opportunity to track the progress of these
projects on a regular basis. This report contains additional background information for the
benefit of incoming Council members.
REPORT:
On January 27, 2009, as part of an Economic Stimulus plan, the Federal Government
designated significant funding allocations over two years for provincial, territorial, and municipal
infrastructure projects under Canada’s Economic Action Plan. The main purpose of this funding
allocation was to stimulate the economy and at the same time create a more modern and
greener infrastructure that is the foundation of sustainable long-term growth. There were three
categories of funding, namely, The Infrastructure Stimulus Fund (ISF), Green Infrastructure
Fund (GIF), and the Recreational Infrastructure Canada Fund (RInC). In addition, the Federal
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Government subsequently earmarked funding for a Community Adjustment Fund in Ontario with
a $1 billion allocation.
The main criteria for projects funded under these programs included:
Projects must be complete by March 31, 2011 (with the exception of the Community
Adjustment Fund which had a completion date of March 31, 2010);
New construction and rehabilitation of existing assets were both eligible;
Projects must be incremental (i.e. not intended to replace existing funding; and
)
Projects were to be funded 1/3 by each of the Federal, Provincial and Municipal
governments (with the exception of the Community Adjustment Fund which was fully
funded by the Federal government).
The City submitted applications for projects in all four programs. The following nine ISF projects
were approved:
1. Centre in the Square Improvements ($1.2 million)
2. McLennan Park Development ($3.0 million)
3. Consolidated Maintenance Facility Improvements ($14.0 million)
4. Consolidated Maintenance Facility Solar Roof ($4.1 million)
5. Accessibility Improvements ($1.0 million)
6. City Hall Lighting ($1.0 million)
7. Energy Management Systems ($1.5 million)
8. Storm Water Infrastructure Rehabilitation ($2.07 million)
9. Sewer and Watermain Rehabilitation ($2.5 million)
The following six RInC projects were approved:
10. Sportsworld Arena ($900,000)
11. Bridgeport Community Centre ($2.1 million)
12. Upgrades to Harry Class aquatic facility ($1,633,500)
13. Upgrades to the Breithaupt aquatic facility ($346,500)
14. Upgrades to the Wilson/Kingsdale aquatic facility ($495,000)
15. Upgrades to the Chicopee aquatic facility ($495,000)
The following CAF project was approved:
16. King Street Rehabilitation ($1.23 million)
Section 1 – Project Status Update
Appendix “A” provides a summary of project status and Appendix “B” depicts the progress
towards completion of each project compared to the planned timeline. Since the previous report
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(August 23, 2010) all projects have progressed. While some projects would appear to be
behind schedule compared to the baseline prepared in mid-2009, project managers have
confirmed that each project could still be completed with the permitted time frame. That said,
the ability to extend completion deadlines (as discussed below) provides relief to projects where
current weather conditions are not favourable to construction activity. Project managers will be
in attendance at Council when this report is received and can respond to specific questions from
members of Council.
With improvements in the economy and the extent of stimulus investment, response to project
tenders has been lower than normal on some recent closings. This presents a risk of increasing
project costs. Staff will continue to manage scope of the projects to align to the estimated
project cost.
The City has been regularly submitting monthly claims for projects since December 2009.
Section 2 – Expedited Purchasing Measures
Council has previously approved a number of purchasing measures to expedite projects
receiving funds under the Infrastructure Stimulus Program, while still maintaining a fair, open,
and transparent procurement process. The measures, along with comments on their utilization,
are outlined in Appendix “C.”
Section 3 – Federal/Provincial Program Updates
Despite the efforts of City staff to clarify provisions related to the release of holdbacks after
March 31, 2011, it has been a challenge to obtain clarification from the Province and Federal
government. As a mitigating strategy, Council authorized staff to amend agreements to release
2% holdbacks by February 15, 2011.
For ISF projects, a decision with respect to holdbacks has finally been received. All final
holdback information needs to be submitted with the final claim. The City will receive
reimbursement for holdback payments once the City provides OMAFRA with invoices and proof
of payment (cheque numbers). The holdbacks must be released before March 31, 2012 when
the contribution agreement expires. Staff will ensure that holdbacks related to ISF projects are
not released before the normal timeline but before the deadline of March 31, 2012 to avoid any
loss of grant funding. For RInC projects, all holdbacks must be released before June 30, 2011.
Section 4 – Other Information
Project
Completion Date
On December 2, 2010, the Government of Canada announced that it would extend the
construction deadline on infrastructure projects under four funding programs: the Infrastructure
Stimulus Fund, the Building Canada Fund Communities Component Top-Up, the Recreational
Infrastructure Canada Program, and the Knowledge Infrastructure Program. The new deadline
is October 31, 2011 instead of March 31, 2011. By extending the deadline for one more
construction season, the Economic Action Plan will further benefit Canadians without incurring
additional government spending.
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In order to qualify for this extension, work must have begun on the project and it must have
incurred eligible costs before March 31, 2011. Claims for all expenses incurred up to this date
must be submitted by April 30, 2011. This is a one-time extension. While virtually all projects
are expected to complete by October 31, 2011, the Government of Canada will not share in any
costs after this date, and proponents will be required to complete projects at their own expense.
The following conditions apply to project extensions:
Projects must have begun work and incurred eligible costs by March 31, 2011; for these
projects, the agreement signatories must submit a claim for all eligible costs incurred up
to March 31, 2011 by April 30, 2011; projects for which no claims are received will not be
eligible for an extension.
Agreement signatories will be required to submit the following documentation by January
31, 2011 for projects requiring an extension:
A list of projects that require an extension beyond March 31, 2011;
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A forecast of project expenses that will be spent and federal funding that will be
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claimed by March 31, 2011, and a forecast of how much will be incurred between
April 1, 2011 and October 31, 2011;
A detailed construction schedule for each project signed by a professional
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engineer;
A Council resolution committing to finish the projects, and accepting
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responsibility for any costs incurred beyond October 31, 2011.
Project progress reports will be required at two-month intervals during the extension
period.
All final claims for extended projects must be received by January 31, 2012.
For projects that are not completed by October 31, 2011, agreement signatories will be
responsible for project completion as well as all costs incurred after this date.
Amended Contribution Agreements with the federal government, as well as (where
applicable) Contribution Agreements between provincial/territorial governments and their
recipients, must be signed no later than February 28, 2011.
The projects identified below were scheduled to be completed by March 31, 2011. However,
construction schedules have been impacted by recent unfavourable weather conditions (wet
conditions in mid/late November, freezing temperatures in early December). If the project work
were to continue under current conditions, the quality of workmanship may be compromised. If
extensions are sought for these projects, it is anticipated that most of the remaining work will be
completed in the early spring.
McLennan Park Development
Outstanding works that cannot be completed due to winter conditions include: asphalt
paving for roads, parking & trails, concrete paving for splash pad, concrete pours for
skate park bowl, great lawn area sodding and site planting.
Expected ISF invoicing outstanding before the original March 31, 2011 deadline
amounts to approximately $660,000 (55% of $1.2M works outstanding). The cost to the
city without the extension would be approximately $440,000 (2/3 of $660,000 ISF
works).
All outstanding works will be completed in April/May of 2011 and will meet the extended
deadline of October 31, 2011.
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Upgrades to Harry Class Aquatic Facility
Outstanding works that cannot be completed due to winter conditions include: exterior
concrete work, vinyl pool tank membrane work, and interior finishes.
The total outstanding cost before the original March 31, 2011 deadline amounts to
approximately $696,000. The cost to the city without the extension would be
approximately $464,000 (2/3 of $696,000).
All outstanding works will be completed in April/May of 2011 and will meet the extended
deadline of October 31, 2011.
Upgrades to Wilson/ Kingsdale Aquatic Facility
Outstanding works that cannot be completed due to winter conditions include:
Installation of the drain pipe from the splash pad to the sanitary sewer connection,
including concrete deck and fence repairs, playground safety surface installation, topsoil,
and sodding, plantings and interior work.
The total outstanding cost before the original March 31, 2011 deadline amounts to
approximately $168,000. The cost to the city without the extension would be
approximately $112,000 (2/3 of $168,000).
All outstanding works will be completed in April/May of 2011 and will meet the extended
deadline of October 31, 2011.
Staff is currently reviewing the implications of the completion date extension for the Bridgeport
Community Centre project in light of Council’s direction in 2010 to plan for a meeting room
addition. Staff will bring forward a separate report on January 17, 2011 to provide a detailed
assessment of this situation along with options for Council’s discussion and direction.
There may be additional projects, which would benefit from an extension to exhaust remaining
budget contingencies or provide some additional time for final completion. Staff will review
progress on all projects and may bring forward additional extension requests in January.
Final Report Date
With the support of a Council resolution, a letter from the Mayor’s office was sent to the Minister
of Agriculture, Food and Rural Affairs on June 16, 2010 to request an extension from April 15 to
June 30 for the submission of the final report for the Consolidated Maintenance Facility project
under the Infrastructure Stimulus Fund. For this project in particular, it would be problematic to
reduce the construction timeline to meet the reporting requirement and deadline of April 15,
2011. The City received a response letter dated August 12, 2010 advising that extension
requests for the submission of the final claim and all the final documentation are not being
considered at this time. However, the City’s extension request was forwarded to the ISF
Management Committee for its information.
Staff has been in regular contact with the OMAFRA analyst and they have confirmed that there
has been a tentative favourable agreement reached between the Federal and Provincial
governments dealing with this timeline issue. Details on this agreement will be forthcoming
once it is finalized.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
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Foundation: Efficient and Effective Government
Goal: Financial Management
Strategic Direction: Invest and manage assets strategically
FINANCIAL IMPLICATIONS:
None at this time
COMMUNITY ENGAGEMENT:
To assist in ensuring the infrastructure stimulus funds are spent in an open, transparent and
accountable manner, staff continues to implement the communications strategy that has been
developed to assist in tracking the progress of all projects. The strategy contains various
communications tools that will give residents an opportunity to follow the work that is underway
on each project.
Federal and provincial signage has been installed at all project sites, recognizing federal
and provincial funding support; only federal signage was required to be installed for the
King Street reconstruction project, as it is supported by the federal Canada Adjustment
Fund;
Project-specific web pages, featuring an interactive map showing all project sites, is
updated on a bi-monthly basis to ensure a user-friendly way for citizens to access
information on each project. The web pages include background on each project, as well
as status updates as they are provided by the project managers;
Project progress continue to be included in every edition of Your Kitchener; this process
will continue until the projects are complete; and
Media releases and/or media events are planned for the completion of each project.
Media releases will be issued upon the completion of all projects and public events will
be scheduled for the following projects:
Aquatic Facility Upgrades
CMF Solar Roof
Centre in the Square
McLennan Park Development
Bridgeport Community Centre
Sportsworld Arena Upgrade
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer
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December 8, 2010
Utilization of Council-Approved Expedited Purchasing Measures
Expedited Purchasing Measure Utilization
The Mayor and Clerk are authorized to sign ISF Contribution agreements have been received
Provincial and Federal agreements as they relate and executed after being reviewed by the City
to the Infrastructure Stimulus Fund and the Solicitor. CAF letter of offer has been received and
Recreational Infrastructure Canada Fund, subject executed by the City Solicitor. The first set of RInC
to the satisfaction of the City Solicitor. contribution agreements have been received and
executed after being reviewed by the City Solicitor.
RInC contribution agreements for the recently
approved four aquatic facility projects have been
received and currently being reviewed by the City
Solicitor.
The Chief Administrative Officer is designated to For Bridgeport Community Centre, expression of
award tenders on Infrastructure Stimulus Fund interest for Consultant was awarded to AECOM with
projects provided that the costs are within the CAO’s approval on October 20th 2009. Cost of the
projected expenses outlined in the applications award is $218,925. Total budget of the project is
and they are reported to Council by way of the bi-$2,249,740. There is a tight schedule for this project
monthly update report. and a delay might jeopardize the project. Province
confirmed funding for this project after a delay of
almost 2 months.
For Sewer and Watermain Rehabilitation project,
expression of interest E09-100, Consultant Services
– Rehabilitation of Infrastructure on Selected Streets
Using Trenchless Technology has been awarded to
Conestoga-Rovers & Associates, Waterloo with
CAO’s approval on December 14th 2009. Cost of the
award is $257,600., including a contingency of
$22,400., and G.S.T.
For Breithaupt Centre project, expression of interest
E10-051, Consultant Services – Breithaupt Centre
Accessibility Renovations and Mechanical Upgrades
has been awarded to +VG Architects, with CAO’s
approval on May 06, 2010. Cost of the award is $
59,226.30, including a disbursement of $2,690.41
and G.S.T of $2,820.30.
For Storm Water Rehabilitation project, tender T10-
014, Pond 4, Pond 22 and Pond 30 Stormwater
Management Facilities Retrofit has been awarded to
Golder Associates - Innovative Applications
GAIA Inc., with CAO’s approval on May 19, 2010.
Cost of the award is $1,232,134.05, including
provisional items of $104,925., and G.S.T of
$58,673.05.
For Harry Class Community Pool project, expression
of interest E10-025, Expression of Interest for
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December 8, 2010
Consultant Services has been awarded to John
MacDonald Architect Inc., with CAO’s approval
on May 19, 2010. Cost of the award is $102,590,
including a disbursement of $2,000, and G.S.T. of
$4,790.
For Bridgeport Community Centre project,
expression of interest E10-112, Expression of
Interest for Construction Management firm has been
awarded to Nith Valley Construction (2008) Ltd., with
CAO’s approval on October 12, 2010. Cost of the
award is $734,500, including H.S.T. of $84,500.
For Centre in the Square project, T10-095, Refurbish
Audience Seating has been awarded to Custom
Cabinets, with CAO’s approval on October 15, 2010.
Cost of the award is $378,598.59, including H.S.T. of
$43,555.59.
For Harry Class RInC project, T10-099, Harry Class
Pool - Change House & Pool Deck has been
awarded to Dakon Construction Ltd., with CAO’s
approval on October 22, 2010. Cost of the award is
$1,618,329.50, including H.S.T. of $186,179.50.
For Energy Management Systems project, T10-106,
Replacement of Existing Building Automation
Systems has been awarded to ESC Automation Ltd.,
with CAO’s approval on October 8, 2010. Cost of the
award is $304,422.51, including H.S.T. of
$35,022.06.
For Energy Management Systems project, T10-107,
Installation of New Building Automation Systems has
been awarded to TAC Controls & Automation Inc.,
with CAO’s approval on October 8, 2010. Cost of the
award is $183,486, including H.S.T. of $21,109.
For Centre in the Square project, T10-108, Sound
System has been awarded to Westbury National
Show Systems Ltd, with CAO’s approval on October
15, 2010. Cost of the award is $157,418, including
H.S.T. of $18,110.04.
For Centre in the Square project, T10-109, Lighting
& Rigging has been awarded to Westbury National
Show Systems Ltd, with CAO’s approval on October
15, 2010. Cost of the award is $248,168.34,
including H.S.T. of $28,550.43.
For Energy Management Systems project, T10-126,
Building Automation - Sportsworld has been
awarded to TAC Controls & Automation Inc., with
CAO’s approval on October 27, 2010. Cost of the
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December 8, 2010
award is $108,882.28, including H.S.T. of
$12,526.28.
For Breithaupt Centre project, T10-114, Breithaupt
Community Centre - Accessibility Renovations has
been awarded to Greyhound Contracting Inc., with
CAO’s approval on November 8, 2010. Cost of the
award is $ 824,900, including H.S.T. of $94,900.
Consultants involved in the preliminary phases be This measure has been effective at expediting the
retained and the consultant selection process be project timeline.
waived for following projects mentioned below:
McLennan Park – Walter Fedy Partnership
CMF Improvements - Giffels Associates
Limited/ IBI Group (Architect consulting
services)
CMF Improvements - Morrison Hershfield
Limited (Mechanical and Electrical consulting
services)
CMF Improvements - Morrison Hershfield
Limited (LEED consultant services)
For Storm Water Infrastructure Rehabilitation This measure has been effective at expediting the
projects, involving drainage upgrades only will be project timeline.
delivered by general contractors under existing
construction contracts through a standard change
order process as per purchasing guidelines.
That the Mayor and Clerk be authorized to This measure will expedite the project timeline. The
execute a 'cost plus' agreement with Ball City has received a written confirmation from the
Construction for the completion of the design and Federal government on this approach.
construction of Sportsworld Arena improvements
to an upset limit of $900,000; said agreement to
be to the satisfaction of the City Solicitor.
The King Street reconstruction project be This measure has been effective at expediting the
delivered by general contractors and consultants project timeline.
under existing construction contracts and
consulting contracts through a standard change
order process as per purchasing guidelines.
That the Mayor and Clerk be authorized to This measure has been effective at expediting the
execute any amendments to Agreements project timeline.
pertaining to Projects for which funding is
approved through the Infrastructure Stimulus
Fund, the Recreational Infrastructure Canada
Fund, and the Community Adjustment Fund, if
necessary, and provided said amendments are
satisfactory to the City Solicitor.
That the Mayor and Clerk be authorized to This provision ensures that the Mayor and the Clerk
execute any agreements pertaining to the tenders have the authority to execute agreements for
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APPENDIX "C"
STIMULUS PROJECT STATUS UPDATE
December 8, 2010
awarded with respect to Infrastructure Stimulus tenders awarded by the CAO.
Fund projects provided said agreements are
satisfactory to the City Solicitor.
That the Chief Administrative Officer be authorized This measure has been effective at expediting the
to approve the commencement of the project timeline.
prequalification process and approval of awards to
the prequalified vendors for Infrastructure Stimulus
Fund and Recreation Infrastructure Canada Fund
projects in instances where scheduling the matter
for the next Council meeting would result in undue
project delay, and that a report regarding these
awards be brought to Council at a future meeting;
That the Director, Supply Services be authorized
to extend current consultant purchase orders for
Infrastructure Stimulus Fund and Recreation
Infrastructure Canada Fund projects to incorporate
the costs of applications for various City
building/planning approvals which would normally
be incurred directly by the City, including related
construction management fees or the other
administrative fees.
THAT the Mayor and Clerk be authorized to This provision ensures that the Mayor and the Clerk
execute an amendment to the following contracts have the authority to release 2% holdback to avoid
and agreements satisfactory to the City Solicitor to any loss of funds due to non-release of holdback
provide for the early release of the 2% prior to March 31, 2011.
maintenance holdback or portions thereof
respecting projects for which infrastructure
stimulus funding or other grant(s) have been
obtained:
McGillivray & Sons Contractors Limited
(September 22, 2009) – to allow the City to
release the 2% maintenance holdback on
February 15, 2011 for the stimulus fund
work completed for Greenbrook drive;
Coco Paving Inc. (April 28, 2009) – to
allow the City to release the 2%
maintenance holdback on February 15,
2011 for the stimulus fund portion of the
work;
THAT the Mayor and Clerk be authorized to This provision ensures that there is no loss of funds
execute forthcoming contracts, agreements, and due to non-release of holdback prior to March 31,
amending agreements satisfactory to the City 2011.
Solicitor, reducing the release of the 2% holdback
from two (2) years from the date of substantial
completion to February 15, 2011 in relation to
stimulus fund projects.
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