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HomeMy WebLinkAboutCSD-11-012 - Bridgeport CC RInC ProjectREPORT TO: Special Council Meeting DATE OF MEETING: January 10, 2011 SUBMITTED BY: Mark Hildebrand, Director Community Programs and Services, ext. 2687 PREPARED BY: Mark Hildebrand, Director Community Programs and Services, ext. 2687 Cynthia Fletcher, Director Facilities Management, ext. 2424 WARD(S) INVOLVED: Ward 1 DATE OF REPORT: REPORT NO.: SUBJECT: RECOMMENDATION: December 29, 2010 CSD-11-012 Bridgeport Community Centre RInC Project THAT an application to extend the construction completion deadline for the Upgrades to the Bridgeport Community Centre project be submitted; and further THAT the scope of work for the Bridgeport Community Centre upgrades revert to the scope approved by the Joint Secretariat in August of 2010, for the purposes of this extension, which includes; i) renovations throughout the building interior including new flooring, ceiling, fixtures, millwork, painting, electrical and HVAC, ii) renovations to the Kitchen and Bathrooms, and iii) renovations to the exterior of the building including the roof, exterior painting, paving and signage; and the expansion of the Bridgeport Community Centre with the addition of a meeting room of approximately 1,000 square feet; and further THAT, subject to the approval of this extension and project scope by the provincial and federal governments, the existing consultants, AECOM Canada Architects Ltd., Kitchener, and the existing construction management firm, Nith Valley Construction (2008) Ltd., New Hamburg, be retained to complete the meeting room addition to increase probability of completion by the October 31, 2011 deadline. BACKGROUND: The Bridgeport Community Centre is a 5,450 square foot facility that currently houses a large hall with a kitchen and bar area, small meeting room, an office, washrooms and an equipment room. The facility has been in operation since 1970 and is located in the Bridgeport community on Tyson Drive, on the Grand River flood plain. In 2008, a business case was completed to determine the short and long term needs of the community and whether the current facility was capable of meeting the existing and growing demands in the surrounding area. Research and public input suggested that a gap existed between the size of facility that is currently in place and the continued and future programming Original Project Scope for the Bridgeport Community Centre Renovation and Expansion It was recommended through the business case that a renovation and expansion of the facility be completed to include; i) a single gymnasium, ii) an additional medium sized meeting/activity room, iii) additional storage, iv) additional office space, and v) an improved lounge and lobby area. Due to funding challenges, initially the renovations and expansion were proposed in two phases and placed into the City of Kitchener's 10 year capital forecast. The first phase included a small expansion and renovation while the second phase, further into the 10 year capital forecast, included a larger gymnasium renovation and expansion. The introduction of the RInC stimulus funding program by the Federal and Provincial governments provided an opportunity for both phases of the project to be combined and completed at the same time. The City applied for, and was eventually awarded, $1.4 million under the RInC program to complete the entire scope of the renovation and expansion of the facility. The City of Kitchener budgeted $850,000 for this project ($557,830 Capital out of Current and 292,170 from Development Charges) bringing the total project budget, including RInC funding, to $2.25 million. Project Challenges A number of challenges were experienced which jeopardized staffs ability to complete the original project scope on time and within the stated budget. While staff managed to accommodate for the majority of the timing challenges experienced at project initiation and throughout, eventually the project was halted because of an accumulated over-expenditure which could not be resolved on time to complete the project by March 31, 2011. The following challenges were experienced during the original project scope 1. Initial funding approval for the Bridgeport Community Centre was delayed due to inconsistent information from senior levels of government, regarding whether the project received RInC funding or not. Staff was not able to confirm funding for the project until August 2009, resulting in the need to compress construction timelines by two months. 2. The facility is located on the Grand River Conservation Authority (GRCA) regulatory floodplain. During the development of the business case, discussions were held with GRCA staff and City of Kitchener planning staff regarding the maximum expansion permitted on this site under the GRCA's and City of Kitchener's regulatory policies. At the time, the project was believed to meet the regulatory policies to be designated as "existing development below the regional flood-line". However when more detailed drawings were submitted and reviewed, it was determined that the scope of the project warranted the designation of "new development". This triggered: • Additional approvals through GRCA, Committee of Adjustment, City of Kitchener Planning and Engineering Divisions, causing significant timing delays; • Additional costs, not anticipated or budgeted for, including costs associated with storm water management (estimated $300,000), and servicing the road right-of- way (estimated $370,000). 3. Construction tenders came in high, the lowest bid coming in over the anticipated construction budget by $410,000. Staff suspects that this occurred due to the tight needs of the community. A renovation and expansion to the current facility was suggested to address these needs. Considering the accumulated over-expenditure of $1.08 million, staff halted the project under its then proposed scope and considered options for reducing the scope of work. Reduced Project Scope for the Bridgeport Community Centre Renovation and Expansion On August 05, 2010, at a special meeting of Council, staff presented a report (CSD-10-052) that proposed a reduced scope of work which; i) could be completed within budget by the March 2011 deadline, ii) would address some of the immediate community needs outlined in the business case, and iii) dealt with some facility needs associated with an aging building. Staff also proposed making a request to the Joint Secretariat, pursuing RInC funding for the reduced scope of work. The suggested range of work by staff included renovations to the existing facility and excluded; i) the addition of a medium sized meeting room to the existing building, and ii) raising the roof to accommodate a single gymnasium. It was noted at this meeting that the current facility site would not be able to effectively accommodate a gymnasium now or into the future, given the restrictions outlined in the floodplain regulatory policies. Therefore if a gymnasium for this community was considered for the future, it would have to be located at an alternate site within the community, and an estimated budget placed as a priority in the 10 year capital forecast. Staff does not see this as a priority in the current 10 year forecast and so this item would likely be considered in the next 11 to 20 years. At this meeting, Council requested that staff bring back a report that considered the addition of a medium sized meeting room along with the proposed renovations, and consider the financial implications if the full scope of the project could not be completed by March 2011. In anticipation of including the addition of a meeting room along with the facility renovations and upgrades in the scope of work, to expedite the appropriate approvals, a request was also made to the Joint Secretariat to make the appropriate amendment to the project. On August 12, 2010, at a special meeting of Council, staff reported back their findings (CSD-10- 055). It was determined that if the project, including renovations to the existing facility and the addition of a medium sized meeting room, was started by September 2010, the estimated date that the project would be completed would be early to mid July 2011. The estimated cost of the reduced scope of work (including renovations and the addition of a meeting room) would be $1.64 million, considering costs already incurred. Staff suggested that approximately 33% of the project would be completed by March 31, 2011. The reduced scope of work, including the renovation and addition of a meeting room, was approved by the Joint Secretariat; however the total cost of the project to the City of Kitchener, considering that only 33% would be completed by March 31, 2011, was estimated to be $1.28 million. It was suggested at this meeting that it would be more cost effective if only the renovations were completed for the March 31, 2010 deadline (estimated cost $979,000, with the City's share being $326,000), and the construction of the addition was delayed to the future. It was felt that; i) construction during the winter season, ii) the current state of the construction industry due to the infrastructure programs, and iii) the push to have the project completed as soon as possible were significant factors contributing to higher costs. As a result, Council passed the following at the August 12, 2010 meeting: That staff reduce the scope of the Bridgeport Community Centre project to include renovations and upgrades to the facility, as outlined in Community Services Department timelines required for project completion and because of the active construction market at the time, due to the federal and provincial stimulus programs. That staff be directed to begin planning for Phase 2 (Building Addition) of the Bridgeport Community centre project, utilizing remaining 2010 Contributions from Capital funding and Development Charge funding allocated for this project. Project Status The Joint Secretariat approved RInC funding for the reduced scope of work, including renovations to the existing facility only. The total budget for the reduced project scope is $979,000, although City of Kitchener staff has been advised that access to the $1.4 million originally approved by senior levels of government is still available, subject to approval of the extension and final project scope. Design work for the renovations has been completed and construction is underway. Although design work for the renovations and upgrades to the current facility includes consideration for a meeting room addition, no specific design work has been completed for the addition to date. Staff has focused completely on the renovations to ensure work is completed before the March 31, 2011 deadline. REPORT: On December 2, 2010, the Government of Canada announced that it would consider extending the construction deadlines on infrastructure projects under the four funding programs, including the RInC program. The new deadline for approved projects would be moved from March 31, 2011 to October 31, 2011. By extending the deadline, the Economic Action Plan will further benefit Canadians without incurring additional government spending. As outlined in staff report FCS-10-001, in order to qualify for this one time extension, work must have begun on the stimulus project and it must have incurred eligible costs before March 31, 2011. Also, the Government of Canada will not share in any costs after the extended deadline, and proponents would be required to complete any work after October 31, 2011, at their own expenses. Staff is requesting direction from Council to increase the scope of work for the Bridgeport Community Centre project, and to apply for an extension for the project to October 31, 2011. Request to increase the scope of the Bridgeport Community Centre Project The current scope of work for Bridgeport includes i) renovations throughout the building interior including new flooring, ceiling, fixtures, millwork, painting, electrical and HVAC, ii) renovations to the Kitchen and Bathrooms, and iii) renovations to the exterior of the building including the roof, exterior painting, paving and signage. The extension of the construction deadline from March 31, 2011 to October 31, 2011 provides an opportunity for the City of Kitchener to consider the addition of a small meeting room (phase 2). As indicated above, this component of the project was removed from the scope of work due to challenges associated with completing the project by the March 31, 2011 deadline and was to be considered at a future date. Staff met with the existing project Architects, AECOM, on December 21, 2010 to review the potential of a small addition to the Bridgeport facility. The consultants were asked to provide report CSD-10-052 previously considered at the August 5, 2010 special Council meeting, keeping within the current C/C funding envelope allotted for the original project scope, less incurred expenses and subject to receiving RInC funding for the reduced project scope; and, specific requirements, considering the addition of a meeting room to the project and the project extension application. The consultants were asked to submit: i) the defined scope to be completed April to October 2011; ii) the project costs of additional items; iii) the new project schedule; and iv) a signed declaration that they have approved the project schedule. (The revised project schedule and associated budget were not ready at the time this report was prepared and will be provided under separate cover for Council on or before January 10, 2011). Although the potential for an extension to October 31, 2011 exists pending application approval, time constraints will continue to be a challenge if the expansion of a meeting room is considered in a revised scope of the project. Under the purchasing bylaw, staff does not have the authority to increase a project to the magnitude that is being suggested and typically the City would engage in a separate tendering process. However, in order to meet tight timelines and minimize risk to the project, staff is recommending that the current consultant and construction management firm be retained to complete the expansion. The benefit of retaining the current consultant and construction firm includes: The current project team is familiar with the building/site and its inherent risks, • If approved directly, the project team can make adjustments to the work schedule to incorporate and prepare for the addition, • If the addition of new work comes at a later date, we run the risk of duplicating or nullifying work completed in the first phase of the project, • The City of Kitchener is not placed in the role of the constructor, with all of the liabilities attached to such a role, • The trades are able to complete deficiencies on both phases of the project. Otherwise we may be forcing one contracting group off the site before deficiencies are completed in order to mobilize a second contracting group. If deficiencies are not properly documented and scheduled for completion, we run into future warranty issues, and • We have a greater chance of completing the project by the Oct 31, 2011 deadline. The time to prepare tender documents and complete the tender/selection process would add 3-4 months to the projected schedule. Any work not completed by Oct 31, 2011 would come at 100% expense to the City of Kitchener. If staff is given direction to increase the scope of work to include the addition of a meeting room, besides submitting an application for a project extension, the City will be contacting provincial and federal government representatives to ask them to consider reverting back to the scope of work, including the addition of a meeting room, approved by the Joint Secretariat in August 2010. RInC funding for the addition will not be secured unless it is approved by the Joint Secretariat, scheduled to meet January 12, 2011, as well as the management committee, scheduled meeting unknown at this time. Although indications are positive that the federal government would support such an amendment to the project, if the modified scope is not approved the City would continue with the original scope of work and still apply for an extension to allow for the completion of exterior work in the spring and summer. Foundation: Efficient and Effective Government Goal: Financial Management Strategic Direction: Invest and manage assets strategically FINANCIAL IMPLICATIONS: The budget for the current scope of work for the Bridgeport Community Centre renovations and upgrades is $979,000, with the City of Kitchener contributing $326,000 and the RInC program contributing $653,000. Budget implications of the proposed increased scope of work along with project schedule will be provided to Council under separate cover. In addition to the City of Kitchener's current contribution of $326,000, there remains $524,000 to be directed towards phase 2 of the project which includes the addition of a meeting room of approximately 1,000 square feet. In addition to the RInC program contribution of $653,000, staff understands that the City of Kitchener still has access to $747,000 of the RInC funds that were initially allocated to this project, subject to approval of the extension and final project scope. COMMUNITY ENGAGEMENT: The City of Kitchener continues to work closely with the Neighbourhood Association if the project changes and as it progresses towards completion. 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 the project site, recognizing federal and provincial funding support; • Aproject-specific web page, featuring an interactive map showing the project site, is updated on a bi-monthly basis to ensure auser-friendly way for citizens to access information on the project. The web page includes background on the project, as well as status updates; • Project progress continue to be included in every edition of Your Kitchener; this process will continue until the project is complete; and • A media release and/or media event is planned for the completion of the project. A media release will be issued upon the completion of the project and a public event will be scheduled. ACKNOWLEDGED BY: (Jeff Willmer, Deputy CAO Community Services) ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: