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HomeMy WebLinkAboutCouncil - 2011-01-10 SSPECIAL COUNCIL MINUTES JANUARY 10, 2011 CITY OF KITCHENER A special meeting of City Council was held at 4:00 p.m. this date, chaired by Mayor C. Zehr with all members present. 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-11-012 (M. Hildebrand / C. Fletcher), dated December 29, 2010 concerning the Bridgeport Community Centre upgrade and expansion project. The report recommends that an application to the Federal Government, under the Recreational Infrastructure Canada /Ontario Program (RInC), be submitted to request an extension of the construction completion deadline; a request be made to the Joint Secretariat to revert back to the scope of work approved by them in August 2010 which included interior /exterior renovations and the addition of a 1,000 sq. ft. meeting room; and, permission to retain the existing project consultant and construction management firm to complete the meeting room addition. Mr. M. Hildebrand, Director, Community Programs & Services, advised that the extended deadline announced by the Federal Government provides for opportunity to now consider the small meeting room addition in phase 2 of the project which was removed due to challenges associated with completion of the project by the March 31, 2011 deadline. Notwithstanding an extended deadline, he pointed out that there remains financial risk in that there is no guarantee the added scope of work will be approved. He stated that if the extension is not granted, it is proposed that the additional work still proceed, with the City to fully fund the cost of same from capital contingencies and the Development Charges Reserve Fund. Mr. Hildebrand provided further clarification of the history of this project, noting the original project consisted of 2 phases, with Phase 1 including renovations together with a small meeting room addition; and the second phase, raising of the roof to accommodate a gymnasium, together with other small renovations. The total cost of the overall original project was approximately $2.1 M. Challenges which altered the original scope of the project relate to the location of the site being on the Grand River Conservation Authority (GRCA) regulatory floodplain. The original business case was based on the project being categorized as `non-development'; however, in the detailed design phase it was determined the project warranted the designation of `new development' which required additional planning and engineering approvals. The additional work would result in significant time delays and added costs not budgeted for, including storm water management estimated at $300,000. and servicing of a road right-of-way estimated at $370,000. In addition, construction tenders exceeded the estimated budget by $410,000 due to a compressed construction timeline and market demand within the industry as a result of the Stimulus Programs; and undertaking the work during winter months would also add to project costs. Councillor J. Gazzola noted that with the additional costs, the project budget estimate increases to $2.7M and requested clarification of the difference between this amount and the $1.6M now proposed to complete the project. Ms. C. Fletcher, Director, Facilities Management, advised that the original budget estimate was reduced by removing the proposed gymnasium /roof renovations originally included in the scope of the project; and pointed out that only those renovations, plus the addition of a small meeting room as approved in August 2010, is what is proposed to now go forward. Mr. Hildebrand advised that Phase 1 of the project, to be completed by March 31, 2011 and estimated at $979,000, is to be funded 2/3 by the Federal /Provincial governments and 1/3 by the City; the City's share of which is $326,000. The second phase, if an extension is approved, is estimated at approximately $640,000., with the City's 1/3 share to be approximately $220,000. Councillor B. Vrbanovic requested clarification of the approval process for the extended deadline. Mr. Hildebrand advised that an application has been made twice before to the Joint Secretariat, the first to reduce the scope of the project by removing both the gymnasium and the small meeting room, which was subsequently amended to re-instate addition of the small meeting room. The application was approved, including the small meeting room, in August 2010; however, due to the financial risk to the City associated with the challenges of completing the project by March 31, 2011, Council resolved to further reduce the scope of the work to include only interior /exterior renovations and upgrades, excluding addition of a small meeting room. Under the proposed extension application, staff propose to ask the Joint Secretariat to revert back to the scope of work as approved by them in August 2010 which would include a small meeting room addition. Mr. Hildebrand cautioned, however, that while staff is confident approval of the extension will be granted it cannot be guaranteed. Councillor Z. Janecki requested clarification of the $524,000. noted as remaining to be directed toward Phase 2 of the project. Mr. Hildebrand advised that the City had budgeted $850,000. for the SPECIAL COUNCIL MINUTES JANUARY 10, 2011 - 2- CITY OF KITCHENER original scope of the project and when reduced in scope, the funds over and above the $326,000. representing the City's 1/3 share of the reduced project, were not removed from the Capital account. He added that if an extension is approved, the City's 1/3 share of $220,000 for the additional work will be taken from the remaining $524,000. leaving approximately $300,000 to potentially draw from should the project not meet the extended completion deadline. Mr. Hildebrand further noted that if not successful in completing the project on time, the shortfall is proposed to be funded 40% from the Capital Contingency and the balance from the Development Reserve Charges Fund. At the request of Mr. Hildebrand, it was agreed that the staff recommendation be amended by deleting the phrase "subject to the approval of this extension and project scope by the Provincial and Federal governments", given indication of concurrence that the project should continue as now proposed regardless of the outcome of the extension application. Moved by Councillor S. Davey Seconded by Councillor B. Vrbanovic "That an application to extend the construction completion deadline for the Upgrades to the Bridgeport Community Centre project be submitted; and, 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 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." Carried Unanimously. Council considered Finance and Corporate Services Department report FCS-11-007 (J. Chatterjee), dated January 5, 2011 recommending application for extension of the completion deadline for various projects under the Federal /Provincial stimulus programs. Mr. D. Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services, advised that the recommendation includes 4 additional projects over and above those approved by Council in December 2010 for application to extend the project completion deadline. He stated that a decision is required at this time in order to meet the application submission deadline of January 17, 2011. The additional projects include storm water infrastructure rehabilitation; sewer and watermain rehabilitation; Consolidated Maintenance Facility (CMF) improvements; and the CMF solar roof. These are recommended based on the City's ability to ensure quality of workmanship due to more favourable construction conditions and ability to maximize remaining contingencies and/or unused budget funds. Mr. Chapman pointed out that the Bridgeport Community Centre upgrade /expansion project should also now be added to the list of projects based on Council's resolution as passed this date concerning report CSD-11-012. Councillor B. Vrbanovic requested clarification in regard to the CMF Solar Roof project and the impact the extended completion deadline may have on a condition of an agreement which requires the solar roof to be operational by February 28, 2011. Mr. H. Gross, Director, Asset Management, advised that installation of the roof membrane will not impact ability to commence operation of the solar ray panels within the specified deadline and the extension related to the membrane installation is to provide for the work to be done in the Spring to ensure a better quality product. He added that the construction contract obligates the contractor to complete the solar roof by the OPA agreement deadline and if not completed, the contractor is subject to a penalty fee. Moved by Councillor B. Vrbanovic Seconded by Councillor B. loannidis "WHEREAS the federal and provincial governments are providing cone-time extension of the deadline for funding of projects under the Infrastructure Stimulus Fund, Building Canada Fund SPECIAL COUNCIL MINUTES JANUARY 10, 2011 - 3- CITY OF KITCHENER -Communities Top-Up, the Recreational Infrastructure Canada/Ontario Recreation Program, and the Knowledge Infrastructure Program from March 31, 2011 to October 31, 2011; AND WHEREAS all funding from the Government of Canada and Ontario will cease after October 31, 2011; AND WHEREAS the Corporation of the City of Kitchener has asked the provincial government for an extension to federal and provincial funding to October 31, 2011 for the following projects: Program Project number Project title Total eligible cost ISF 1952 McLennan Park Development $3,000,000 RInC R2719 Upgrades to Harry Class Pool Aquatic Facility $1,633,500 RInC R2721 Upgrades to the Wilson/ Kingsdale Aquatic Facility $495,000 ISF 1524 Storm Water Infrastructure Rehabilitation $2,070,000 ISF 1800 Sewer and Watermain Rehabilitation $2,500,000 ISF 1199 Consolidated Maintenance Facility Improvements $14,000,000 ISF 1219 Consolidated Maintenance Facility Solar Roof $4,100,000 RInC R1023 Upgrades to the Bridgeport Community Centre $2,100,000 THEREFORE BE IT RESOLVED THAT the Corporation of the City of Kitchener (attests that it will continue to contribute its share of the required funding for the aforementioned projects; AND BE IT FURTHER RESOLVED THAT actual claims for all eligible costs incurred by March 31, 2011, for the aforementioned projects must be and will be submitted no later than April 30, 2011; AND BE IT FURTHER RESOLVED THAT The Corporation of the City of Kitchener will ensure that the project will be completed." Carried Unanimously. Council considered Community Services Department report CSD-11-002 (L. Eckel-Braun), dated December 20, 2010 requesting that provisions of the Purchasing By-law be waived in respect to maintenance repairs to the Crematorium retort unit at Williamsburg Crematorium, in favour of awarding the contract to a known service company. Councillor J. Gazzola suggested that it is bad practice to waive the tendering process and questioned that notwithstanding the work is specialized and there is limited suppliers, why this work would not be tendered to ensure there are no other qualified suppliers. Ms. L. Eckel-Braun, Manager of Cemeteries, stated that the best practice is not always to accept the lowest bid, pointing out that this is a unique machine that requires specialized skills in its maintenance. She added that the City has an obligation to ensure that the machine is running efficiently and that its customers can be assured of a high quality service. She pointed out that the City was advised that the unit should be serviced every 5 years to maintain optimal operation and the cost would be approximately $25,000. each time. In 2007, the proposed company conducted the repair work at a cost of approximately $26,000 and 5 years later, now proposes a fee of $29,000 demonstrating it is not gauging; and the company has an excellent track record in this service industry. Ms. Eckel-Braun added that staff's research of qualified companies determined that there are no local companies and aside from the company proposed, there is only one other company based in Florida, USA. She noted that many other municipalities do not use the tendering process in favour of using the services of the proposed company and it was her opinion, based on past experience, that they would be the best and safest to use. Councillor Gazzola commented that it was his understanding the City does not always have to accept the lowest bid and requested clarification. Mr. D. Chapman advised that under the Purchasing By-law, if a low bid meets the tender specifications the City is bound to accept the bid. Councillor Gazzola suggested that notwithstanding, the tendering process is the most transparent way for the City to ensure due diligence. Ms. Eckel-Braun responded to further questions, advising that the proposed company is based in London, Ontario and in past tendering, only one other company submitted a bid who had experience in brick work but not in crematorium services. She stated that it is not staff's practice to request an SPECIAL COUNCIL MINUTES JANUARY 10, 2011 - 4- CITY OF KITCHENER exemption, but in this instance the circumstance is unique in that there is a limited market and the service requires a reliable maintenance provider to ensure business is not adversely impacted. It was noted that the cost of tendering would equate to staff time and administrative costs and would result in an approximate 2-month delay. It was also noted that Council would have more discretion to choose a service provider under a Request for Proposal than under the tender process. In regard to liability, Ms. Eckel-Braun referred to an incident in the City of London, where another company was used who had provided unsatisfactory repairs that resulted in a fire in their unit. Councillor B. Vrbanovic requested clarification as to the threshold amount under which staff is permitted to proceed without tendering. Mr. Chapman responded that only goods and services of a value over $100,000. is required to be tendered through sealed bids and he pointed out that this report is only before Council to waive the requirements under the Purchasing By-law in respect to obtaining quotations. Councillors K. Galloway and B. Vrbanovic spoke in support of staff's recommendation, commenting that staff has undertaken due diligence in their research and that it is important to provide quality work and a reliable product in an industry of a highly sensitive nature. Councillors J. Gazzola, Z. Janecki, Y. Fernandes and D. Glenn-Graham stated they would not support the recommendation, commenting that tendering provides the best opportunity for transparency and due diligence. Mayor C. Zehr stated that he could support the recommendation as it is important to ensure quality service for the City's clientele and the price as proposed is reasonable. He commented that part of Council's role is to make judgment calls in certain situations and such exemptions, while rare, are usually granted in the case of extenuating circumstances such as this. He added that he does not agree that the City is not being transparent, pointing out that all has been fully explained in the report which is a public document. Moved by Councillor K. Galloway Seconded by Councillor B. Vrbanovic "That the City's Purchasing By-law be waived in regards to maintenance repairs to the crematorium retort unit at Williamsburg Crematorium; and further, That Commercial Burner Maintenance Limited be awarded the contract to complete the rebuild of the Williamsburg Crematorium retort unit at the quoted price of $29,860.00 + HST." Motion Lost Mayor C. Zehr inquired if a motion was now required to direct staff to undertake the tendering process. Mr. Chapman advised that no motion is required but rather staff will take it as direction of Council to review the processes for tendering and Requests for Proposal and proceed in this instance with whichever is most appropriate. Council considered Infrastructure Services Department report INS-11-004 (B. Korah), dated December 20, 2010, concerning the Old Mill Road forcemain replacement project. Messrs. Chris Sphere, MTE Consultants Inc. and B. Korah, Manager, Development Engineering, presented background information pertaining to the origins of this project and recommendations requesting that tender requirements be waived to permit MTE to be retained to complete the detailed design and contract administration for the project; execution of an Engineering Agreement with MTE for professional engineering services; and allocation of funding from the Sanitary Sewer Utility to the project budget account. This project results from a request to partner with Conestoga College and the City of Cambridge on the sanitary servicing of the proposed expansion of the College's south campus and the Blair Business Park at Fountain Street and Morningside Drive / Dickie Settlement Road (south of Highway 401). It was determined appropriate to undertake replacement of the Old Mill Road ductile forcemain at this time to take advantage of cost savings and reductions in community and environmental impacts resulting from a partnership arrangement. It was also noted that ductile iron piping is no longer used in construction of forcemains and there is risk of the existing forcemain breaking due to its age and structural integrity. Councillor Z. Janecki requested clarification of the difference between the cost of the professional engineering services and the requested allocation to the project budget. Mr. G. Murphy advised that SPECIAL COUNCIL MINUTES JANUARY 10, 2011 - 5- CITY OF KITCHENER the $52,000. for professional engineering services covers the consultant fees for detailed design drawings and contract administration; while the allocation of $282,000. is to cover construction costs associated with replacement of the forcemain. Councillor Janecki questioned why tender requirements should be waived for selection of a consultant. Mr. Murphy advised that where development is initiated by a third party, and in this instance the City of Cambridge, it has been past practice to take advantage of contracting with the existing project consultant because of the efficiencies to be gained in completion of the balance of the work. Councillor J. Gazzola questioned how the direction of flow to Kitchener's plant was determined. Mr. Sphere advised that the Region of Waterloo's planning policy governs where servicing will be dedicated and it was the Region's decision that the route should lead to the Kitchener Waste Water Treatment Plant. Councillor Gazzola requested clarification of costs and was advised that the total cost of the project is $382,000., consisting of $330,000. in construction costs and $52,000. in consulting fees. Councillor Gazzola referred to the projected savings of $200,000. and questioned if the City had solely undertaken the work if the cost of the project would then be $582,000. and Mr. Korah advised that would be correct. Councillor Gazzola suggested that in light of the savings it was worth going against normal practice and questioned if the surrounding neighbourhood was aware of the pending disruptions. Mr. Sphere advised that affected residents have been consulted with and are aware. He also gave assurance of his confidence in obtaining all required agency approvals in time for the work to commence. Councillor Y. Fernandes questioned how unexpected costs that may arise, such as the need to address endangered species and / or obtain additional permits /agreements, would be dealt with in the proposed budget. Mr. Sphere advised that such matters had been taken into consideration during the Environmental Assessment consultation and costing built into the projected estimates. Councillor Fernandes raised concerns with impact to area properties on well water and Mr. Sphere assured Council that all wells will be monitored during construction and any issues dealt with in an expedient manner. Councillor Fernandes questioned if this project could be used to negate need for the Homer Watson Pumping Station project. Mr. G. Murphy advised that analysis as part of the Doon South EA, determined that sole use of the Old Mill Road pumping station is not feasible to service the whole of the area but rather both stations are to be linked together. He added that the intent is not to upgrade the Old Mill Road pumping station at this time given time constraints associated with the Cambridge /College campus project. Councillor D. Glenn-Graham questioned the impact to the environment of disposal of the existing ductile forcemain and if there is a comprehensive replacement plan for this type of piping in the City's infrastructure. Mr. Sphere advised that disposal of the existing piping will be addressed in the detailed design phase and the forcemain will remain active while new installation is occurring. Mr. G. Murphy advised that ductile piping is primarily used in water distribution systems and the City does have an Accelerated Infrastructure Program to address infrastructure replacements. He added that there is no corrosion of the existing forcemain but in light of the Cambridge /College campus project and associated risk of structural failure it was determined appropriate to undertake replacement at this time. Moved by Councillor D. Glenn-Graham Seconded by Councillor Y. Fernandes "That the tender selection requirements of the purchasing policy for the selection of Engineering Consultants be waived and that MTE Consultants Incorporated be retained as the Engineering Consultant for the City to undertake the detailed design and contract administration for the Old Mill Road forcemain replacement project; and, That the Mayor and Clerk be authorized to execute an Engineering Agreement for the provision of professional engineering services between the City of Kitchener and MTE Consultants Incorporated at a total cost of $52,000.00 including applicable taxes; and further, That $282,000. be allocated from the Sanitary Sewer Utility to the Old Mill Road Forcemain Replacement project account to complete the project." Carried Unanimously. Council considered Finance and Corporate Services Department report FCS-11-006 (S. Ross), dated December 31, 2010, concerning a Cross Border Agreement with the City of Cambridge to address operation, maintenance and other requirements associated with construction and maintenance of a SPECIAL COUNCIL MINUTES JANUARY 10, 2011 - 6- CITY OF KITCHENER sanitary service main from Conestoga College South Campus and Blair Business Park to the Kitchener Waste Water Treatment Plant (Conestoga / Blair Forcemain). Mr. S. Ross, Assistant City Solicitor, advised that the Cross Border Agreement is related to consideration of the previous report concerning the replacement of the Old Mill Road forcemain to address associated legal matters. He advised that several easements will be required along the forcemain route which falls outside Kitchener's right-of-way. Both the Cities of Cambridge and Kitchener will require an easement from Conestoga College for the portion located on College lands; Cambridge requires an easement from the Grand River Conservation Authority (GRCA) to mirror an existing Kitchener easement for the portion crossing GRCA lands; and, Kitchener requires an easement from the Region of Waterloo to recognize existing forcemain and infrastructure on Regional lands adjacent to their Waste Water Treatment Plant. Moved by Councillor K. Galloway Seconded by Councillor B. loannidis "That the Mayor and Clerk be authorized to enter into a Cross Border Agreement with the City of Cambridge, substantially in the form of the Agreement attached to report FCS-11-006 as Schedule "A" and as approved by the City Solicitor, to address the operational, maintenance and other requirements to construct and maintain a sanitary service main from Conestoga College South Campus and Blair Business Park to the Kitchener Wastewater Treatment Plant (the "Conestoga/Blair Forcemain"; and, That the Mayor and Clerk be authorized to execute such further documentation to accept an easement in favour of the City of Kitchener and City of Cambridge over lands owned by Conestoga College, substantially similar to those lands outlined in Schedule "B", Figure 1 attached to report FCS-11-006, and as approved by the City Solicitor, to permit the construction and maintenance of the Conestoga/Blair Forcemain; and, That the Mayor and Clerk be authorized to execute such further documentation, if necessary, to allow the existing easement registered as Instrument No. 416875 over Grand River Conservation Authority in favour of the City of Kitchener, to be used by the City of Cambridge, upon consent of the Grand River Conservation Authority, to permit the construction and maintenance of the Conestoga/Blair Forcemain; and, That the Mayor and Clerk be authorized to execute such further documentation to accept an easement in favour of the City of Kitchener and City of Cambridge over lands owned by the Grand River Conservation Authority, adjacent to the Old Mill Pumping Station and substantially similar to those lands outlined in Schedule "B", Figure 2 attached to report FCS-11-006, and as approved by the City Solicitor, to permit the construction and maintenance of the Conestoga/Blair Forcemain; and further, That the Mayor and Clerk be authorized to execute such further documentation to accept an easement in favour of the City of Kitchener and City of Cambridge over lands owned by the Region of Waterloo, adjacent to the Kitchener Wastewater Treatment Plant and substantially similar to those outlined in Schedule "B", Figure 3 attached to report FCS-11-006, and as approved by the City Solicitor, for the purposes of maintaining existing infrastructure owned by the City of Kitchener and to permit the construction and maintenance of the Conestoga/Blair Forcemain." Carried. On motion the meeting adjourned at 5:35 p.m. MAYOR CLERK