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HomeMy WebLinkAboutINS-16-064 - Battler Snow Storage Disposal Facility (SSDF) Funding Increase REPORT TO: Special Council DATE OF MEETING: August 8, 2016 SUBMITTED BY: Dan Locke, Interim Associate Director (Operations), (519)741- 2600 ext. 4517 Hans Gross, Director of Engineering, (519)741-2200 ext. 7410 PREPARED BY: Dan Locke, Interim Associate Director (Operations), (519)741- 2600 ext. 4517 WARD(S) INVOLVED: All DATE OF REPORT: July 19, 2016 REPORT NO.: INS-16-064 SUBJECT:Battler Snow Storage Disposal Facility (SSDF) Funding Increase ____________________________________________________________________________________ RECOMMENDATION: That additional funding of $_______, be allocated to the Battler Snow Storage Disposal Facility (SSDF) capital project from the Development Charge Recovery reserve. BACKGROUND: Staff have previously identified the need for a permanent Snow Storage Disposal Facility (SSDF) to meet provincially legislated minimum maintenance standards for snow removal. The City has been using a leased location at 75 Ardelt Place, but has been informed by the property owner that it will no longer be available as a snow disposal site. As such, the City requires a new snow disposal site. Through consideration of multiple sites outlined in previous staff reports, and with public feedback from dedicated Public Information Centres (PICs), Council has approved the construction of a permanent SSDF at 1585 Battler Road. The total approved budget for all phases of the project is $2,400,000. This report is seeking an increase to the project budget of $660,000 in order to award the construction tender that has come in higher than the approved budget. The revised budget ($3,060,000) is still within the estimated cost range ($2,448,500 to $3,106,500) noted in report INS-15-044 of September 2015. REPORT: Tenders for the construction of the Battler Road SSDF closed on July 18, 2016 with all submitted bids being above the approved budget for this phase of the project. Through the design and approvals process for the Battler Road SSDF, additional items were *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 7. - 1 required by various agencies to be added to the project (e.g. additional environmental protections required by the Grand River Conservation Authority for runoff and silt, increased height of noise walls from one metre to two metres to meet noise restrictions). Additional application fees and studies were also required given the scope of work being considered for the SSDF. The addition of these components, as well as the low bid price which is approximately 7% above the pre-tender estimate has resulted in a tender price that is higher than the estimate prepared in September 2015. Staff have fully explored options and determined there are not viable alternatives to awarding the construction tender for the Battler Road SSDF. Temporary snow disposal sites are not available, and the Battler site is the highest ranked location for a permanent snow storage disposal facility. Further, pursuing any other permanent location would take up to three years to study, apply for approvals, design, and ultimately construct a permanent snow storage disposal facility. By awarding the Battler Road SSDF tender in August, it allows adequate time to have the new permanent location operational by December 2016. Staff have reviewed the Battler Road SSDF tender, and suggest two items that could be removed from the contract which would result in a reduced cost of up to $80,000. Council is requested to select one of the following four Options for inclusion as part of the recommendation contained herein: Option A – additional funding of $660,000, which represents no reduction in the scope of work. Option B – additional funding of $600,000, which represents the removal of the washroom facility from the scope of work. Option C – additional funding of $640,000, which represents the removal of the landscaping along Battler Road from the scope of work. Option D – additional funding of $580,000, which represents the removal of both the washroom facility and the landscaping along Battler Road from the scope of work. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority: Effective and Efficient Services Strategy: 5.2 – Improve the design and delivery of city services so that they provide what citizens want in the most reliable, convenient and cost efficient way. Strategic Action: 91 Snow Disposal Site 7. - 2 FINANCIAL IMPLICATIONS: Based on the low bid received through a competitive tendering process, a maximum budget increase of $660,000 is required to award the Battler Road SSDF construction contract. It is proposed this funding come from the Development Charge (DC) Recovery reserve. The DC Recovery reserve is the primary funding source for this project and there is projected to be sufficient room within the reserve to fund an additional $660,000 for the Battler Road SSDF. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. CONSULT and COLLABORATE – At the public information centre (PIC) held on th October 20 participants had the opportunity to raise any concerns regarding the SSDF project and the possible impact on their neighbourhood. A second PIC was held on June 22, 2016 which showed the final proposed design to the participants and gave them the opportunity to raise any concerns. In advance of both PIC’s, a letter regarding the PIC was mailed out to the residents living within a 0.5 km radius of the proposed SSDF site at 1585 Battler Road informing them of the PIC and how to participate. PREVIOUS CONSIDERATION OF THIS MATTER: Report INS-15-044, Snow Disposal Site Selection Report taken to Council on September 21, 2015. Consideration of the recommendation as outlined within the report was deferred to allow for the completion of a PIC with residents. Report INS-15-091, Snow Disposal Site Public Consultation taken to Council on November 2, 2015, included public input as a result of a PIC held on October 20, 2015. CONCLUSION: The City requires a snow disposal site in order to meet legislated requirements and the expectations of residents. A permanent location at 1585 Battler Road has been approved by Council, but has a higher cost than expected. In the absence of any viable alternatives, an increased budget for construction of the Battler Road SSDF should be approved. ACKNOWLEDGED BY: Cynthia Fletcher and Justin Readman, Interim Executive Directors of Infrastructure Services 7. - 3