HomeMy WebLinkAboutINS-20-005 - City Hall Outdoor Spaces Rehabilitation Update
REPORT TO: Special Council
DATE OF MEETING: February 24, 2020
SUBMITTED BY: Asad Qureshi, Director Facilities Management
519-741-2600 X 4424
PREPARED BY: Lynda Stewart, Manager Projects & Energy Management
519-741-2600 X 4215
WARD (S) INVOLVED: All Ward(s)
DATE OF REPORT: February 10, 2020
REPORT NO.: INS-20-005
SUBJECT: City Hall Outdoor Spaces Rehabilitation Update
___________________________________________________________________________
RECOMMENDATION:
That the City Hall Outdoor Spaces Rehabilitation project scope/cost reductions identified
in Infrastructure Services Department report INS-20-005 Table 1 be approved; and,
That $2.8M be added to the City Hall Outdoor Spaces Rehabilitation Project for a total
project budget of $11.8M; and further,
That the funding sources for the additional budget be allocated as follows:
Parking Capital Reserve - $450,000
Parking Structural Provision Account - $150,000
Tax Capital Reserve - $900,000
Gas Tax Reserve - $1,300,000
BACKGROUND:
In September 2016, Council received the City Hall Outdoor Spaces Master Plan, which outlined
the existing conditions and how the areas could potentially be redesigned to be more flexible for
programming; provide better access to the spaces and replace necessary infrastructure for
durability.
The following issues related to infrastructure were identified in the master plan:
An engineering report identified cracks and leaking of salt and water into the ceiling of the
parking garage which increases the costs of garage repairs the longer rehabilitation work is
deferred. The waterproofing membrane must be replaced to rectify this situation. Failure to
address this issue could result in spalling concrete (concrete dislodged from the soffit) within
2-3 years.
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The physical design of site features, including the stage, fountain, stairs, ramps and
damage to the paving surface present significant accessibility issues.
The drainage infrastructure, particularly the trench drains, is in poor condition. Most of the
drains through the garage roof slab are actively leaking and this has resulted in
deterioration of the concrete directly around the drains. This is an indication that the
membrane bond has failed near the drains and this condition will continue to expand each
season during periods of freezing temperatures. For this reason, deferring the repairs will
result in an escalation in leak locations and concrete deterioration.
The design of the drainage should be improved to suit the environmental conditions as
required by the Ontario Building Code. In the proposed design, the trench drain capacity
will be increased and area drains will be bi-level drains to improve performance and reduce
flooding risk. Below the entire concrete surface, a sub-surface drain board will be installed
to help direct water towards the drains.
Both the ice rink and fountain are original equipment and reaching the end of expected
lifecycle. Replacement should be considered, as the fountain and ice rink were rated very
favourably in feedback provided during public consultation for the master plan.
From a programming perspective, the proposed design would address these concerns:
Programming and events at City Hall have grown considerably and are expected to
continue to expand in scale and variety of activities. The size and position of the stage and
fountain impacts programming, limiting the usable area of the square for events.
Draining the fountain for events is a labour and time intensive activity and necessitates
blocking off part of the square to prevent trip and fall injuries due to the grade change.
The resolution passed by Council recognized critical infrastructure (surface concrete, parking
garage membrane and surface drainage) as the first priority; that the refurbishment or
replacement of the ice rink, fountain and stage should be considered concurrently with critical
infrastructure replacements; and, that other elements would be considered subject to funding
availability.
Subsequently, a Functional Plan to explore the feasibility of constructing the master plan
design was completed in 2017 (INS 17-076 City Hall Outdoor Spaces Functional Design).
During
budget deliberations in 2019, a capital project was approved based on a 60% completed
design submission.
In 2019, further work to refine the design continued and a structural engineer specializing in
restoration projects was added to the team. A 100% detailed design submission was tendered,
closing on December 10, 2019 (T19-177).
REPORT:
Two tenders were received for the City Hall Outdoor Spaces Rehabilitation Project, both
significantly exceeded the project budget, with the lowest being $2.8M over budget.
Staff and the consulting team have analyzed the bids to understand the significant variance
between the estimated costs used to set the budget and those included in the bids received.
Cost Drivers
Generally, market conditions have been exerting upward pressure on construction costs over
the last several years. The City of Kitchener has seen high demand for construction trades and
a number of large projects are underway in Waterloo Region. A pre-qualified bidder withdrew
from this tender as the company was awarded another project and would not have the trade
capacity to complete both projects. The site conditions for this project, such as limited staging
areas; limited site access; the need for off-site storage; and work sequencing requirements are
somewhat challenging. These conditions could result in a price premium, but it is difficult to
quantify these potential factors.
Labour and material costs have also increased significantly in a heated market. Concrete,
petroleum-based products, and metal products are showing marked increases. All three
materials are required in significant quantities for this reconstruction project. Statistics Canada
Construction Price Index reports show a 9% annualized increase for metal products in the period
May 2016 to January 2019; in a shorter period from early 2018 to January 2019, concrete
products showed a 7.4% annualized increase. A bulletin issued by Statistics Canada in August
20Structural steel framing and concrete products were the main drivers of price
The November 2019 bulletin noted a
In addition to market and demand considerations, specific to this project there are two key items
driving the cost difference between the project budget and the tender bid the waterproofing
membrane and the electrical and mechanical components of the ice rink and water feature.
Waterproofing Membrane
The current waterproofing membrane on the podium deck is a hot rubberized asphalt product
and is original to the construction of City Hall in 1993. Transportation Services staff undertake
condition assessment surveys of the parking garage on a three year cycle. Recent surveys have
noted accelerated deterioration of leaking cracks through the slab which indicates the podium
deck waterproofing system is at the end of its effective life. Between 2016 and 2019, the
condition assessment noted a 576% increase in the length of leaking soffit cracks in the podium
deck. The most recent condition assessment report recommended trench drains and concrete
work be undertaken in 2020.
Project budget estimates for the podium deck waterproofing system were based on the 2016
condition assessment report which considered a like for like replacement hot rubberized
asphalt membrane and pavers as the hardscape. With the expertise of a structural restoration
engineer on the team, the design evolved in 2019. Given the maintenance challenges and
deterioration of the existing granite and concrete pavers, the hardscape was changed to
concrete for more durability. The waterproofing membrane was changed to a cold-applied dual
membrane system to align the service life of the waterproofing with the surface concrete and
achieve better overall results.
The project team investigated alternative products, particularly for the waterproofing membrane
application. The structural restoration engineer strongly recommends that a cold-applied dual
membrane waterproofing system be used for the following reasons:
While a higher capital cost, it has the lowest lifecycle cost providing nearly double the
service life as hot rubberized asphalt systems. Repairs could be expected within 20 years
and a full replacement of hot asphalt systems within 30 years. The service life of the cold-
applied membrane is expected to be 50 years. Poured in place concrete paving will
mitigate the damage from salt erosion and snow removal equipment, but it is more difficult
to access the waterproofing should repairs be necessary, which is more likely with the hot
asphalt system.
It is a low odour product with fewer risks. Hot applied systems create noticeable odours
and inherently have greater health and safety risks for workers.
Redundancy in the membrane and reinforcing components gives added protection and
flexibility to accommodate movement and grade changes.
Cold-applied membranes can be used in a wider range of environmental and site
Cold applied membranes are suitable for all site components, including planters and
submerged conditions. Hot asphalt systems would require additional work in these areas.
The waterproofing membrane related to the parking garage accounts for 52% of the variance
between the project budget and the submitted bid ($1,450,250 of a $2,803,876 variance).
Mechanical and Electrical Components
The majority of mechanical and electrical components of the project are related to the rink and
fountain restoration which are nearing end of life. Piping and electrical work for this project is
extensive and restoration work compared to new construction is generally more complex and
time-consuming. Specialist contractors are engaged to complete rink and water feature
construction and market demands on these trades are high. These factors contribute to a cost
premium for this project. As part of the post-tender bid analysis, recent comparable projects
were reviewed and found the submitted bid price is similar and reasonable.
In evaluating the key drivers of costs specific to the project, it was identified that the project team
assumed the reuse of existing penetrations through the slab, where possible, for mechanical
and electrical components. However, significant work is required to make either new or existing
penetrations waterproof which was not accounted for on the project budget. In addition, stainless
steel grating for the water feature drains is necessary in two locations across the square. As
noted previously, metal products have seen sharp price increases and is a significant factor
here.
Electrical and mechanical components related to the ice rink and water feature account for 38%
of the variance between the project budget and the submitted bid ($1,070,100 of $2,803,876).
Other Items
The final design exercise in 2019 identified additional scope items related to accessibility and
repairs to the City Hall stone façade. To achieve Accessibility for Ontarians with Disabilities Act
(AODA) compliance, several features will need to be upgraded from the original design:
Additional railings on stairways and ramps that are currently too wide
Realign the ramp on Duke St. to maintain a consistent width along the length
Current handrails need to be replaced with rounded handrails placed at correct height
GRAAC members requested Tactile Walking Surface Indicators (TWSI) for safe
wayfinding on Carl Zehr Square and the Duke Street entrance.
Accessibility upgrades and stone façade repairs account for 10% of the variance between the
project budget and the submitted bid ($282,526 of $2,803,876).
Project Scope/Cost Reductions
Staff evaluated potential reductions in scope for the overall project to reduce the cost of the
construction works. It is difficult to achieve large-scale scope reductions since the majority of
the work is critical infrastructure repair or replacement of the surface paving and drainage and
the waterproofing membrane. The extent of the parking garage dictates that work must be
performed on all four elevations at city hall. Similarly, the water feature and ice rink infrastructure
are nearing the end of lifecycle and this is an opportunity to replace that equipment before
concrete is re-poured.
Provisional items and alternate pricing for some project elements were identified in the tender
bid. Staff are recommending that the items identified in table 1 be removed from the project
scope, representing approximately $1.7M reduction in project costs.
Table 1 Staff Recommended Project Scope & Cost Reductions
Item Description $ Savings
Renewal of Upper Terrace Area outside exit doors to King St. & $392,175
Carl Zehr Square terrace across the front
nd
Renewal of Ramp and Stairs leading to 2 floor from CZS & $458,000
nd
Stairs Carl Zehr Square Ramp to 2 floor from area near College
St. underpass
Site Furnishings Carl Surface mounted furnishings, including $154,460
Zehr Square bike racks, bike repair station, shade
canopies, cantilevered benches and
waste / recycle stations
Site Furnishings - Duke St Surface mounted furnishings, including $37,450
bike racks, benches and waste / recycle
stations
Alternate item Kitchener Alternate price to provide KITCHENER $161,000
sign lettering sign on southeast corner (Gaukel
St.) Base price includes poured in place
sign wall
Contingency reduction $505,403
from 10% to 5%
Total $ 1,708,488
The consequence of removing these items is that the upper terrace, ramp and stairs will need
to be waterproofed at a future time. Ideally, this would be done when building envelope
replacements are completed to tie that waterproofing into the building to ensure integrity.
The site amenities such as benches, shade structures, waste / recycling receptacles and cycling
infrastructure are integral to the functionality of the square for events. These items will need to
be funded out of other capital accounts however it is anticipated that more competitive pricing
would be possible by purchasing these items directly outside of the project scope.
FINANCIAL IMPLICATIONS:
As noted earlier in the report, the project is overbudget by approximately $2.8M. The proposed
funding solution apportions the extra costs between Parking and Tax, which are the original
funding sources for the components and are subject to price escalation. The funding split is
based on the original proportions used to fund the project. The specific funding sources and
amounts are noted in Table 2, and will draw down the unallocated balances in these accounts.
Table 2 - Proposed Funding Sources
Funding Source $ Amount
Parking Capital Reserve $450,000
Parking Structural Provision Capital Account $150,000
Total Parking Contribution $600,000
Tax Capital Reserve $900,000
Federal Gas Tax Reserve $1,300,000
Total Tax Contribution $2,200,000
Total Funding Contribution $2,800,000
Table 3 shows the projected ending balances for each of the reserves over the next five years
after making the proposed transfers. It should be noted that the proposed funding transfer from
Federal Gas Tax does not utilize the $900,000 closeout made late in 2019 related to Woodside
Park.
Table 3 - Ending Reserve Balances
Reserve 2020 2021 2022 2023 2024
Parking Capital $757,000 $61,000 $16,000 $226,000 $444,000
Tax Capital $1,100,000 $531,000 $139,000 $0 $0
Federal Gas Tax $927,000 $1,013,000 $1,171,000 $2,533,000 $1,189,000
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
INS 16-066 City Hall Outdoor Spaces Master Plan
INS 17-076 City Hall Outdoor Spaces Functional Design
2019 Budget Issue Paper Cap04- Rehabilitating City Hall Outdoor Spaces
CONCLUSION:
The condition of City Hall outdoor spaces has continued to deteriorate over the past few years
and the need to address critical infrastructure, accessibility, flexibility and durability concerns
remain. Staff recommend increasing the project budget by $2.8M to complete the required
rehabilitation of the City Hall Outdoor Spaces.
Delaying this project would result in the loss of the 2020 construction season and increase
inflationary costs in future years. Retendering the project provides no guarantee of more
competitive bids and is likely to result in higher bids overall.
This project addresses several needs: rehabilitating critical infrastructure; making the areas
more accessible for patrons; and increasing the flexibility for events and festivals. This is
consistent with the strategic objectives to manage assets to be sustainable and dependable;
managing storm water; creating vibrant and active public spaces and developing downtown
Kitchener and City Hall as the heart of the city. The importance of this project suggests it
should not be delayed until future budget years.
ACKNOWLEDGED BY: Denise McGoldrick, General Manager, Infrastructure Services