HomeMy WebLinkAboutINS-2022-111 - Centre in the Square (CITS) Washroom Renovations
Infrastructure Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: February 28, 2022
SUBMITTED BY: Asad Qureshi, Director Facilities Management, 519-741-2200 ext. 4424
PREPARED BY: Chris Oke, Manager Project Delivery, 519-741-2200 ext. 4225
WARD(S) INVOLVED: All Wards
DATE OF REPORT: February 24, 2022
REPORT NO.: INS-2022-111
SUBJECT: Centre in the Square (CITS) Washroom Renovations
RECOMMENDATION:
That funding be reallocated to the CITS Washroom Renovation project from the following
accounts:
$1,043,945.65 from the CITS General Provision capital account
$560,000.00 State of Good Repair (SOGR) capital account
BACKGROUND:
In 2019 Centre in the Square (CITS), in collaboration with City Facilities Management staff,
applied for and were successful in obtaining a grant from the Investing in Canada Infrastructure
Program (ICIP): Community, Culture and Recreation Stream to renovate the existing
washrooms. The existing washrooms are in poor condition with finishes well past end of life and
require significant upgrades to improve accessibility and to meet AODA compliance. While the
existing number of fixtures (60) meets the Ontario Building Code (OBC) requirements,
functionally they are not adequate to meet peak demand during events, resulting in long line ups
and frustration for patrons. This project will update the existing 60 fixtures, add 16 fixtures to
help alleviate capacity issues experienced during peak usage, and improve accessibility. As per
the agreement with CITS, resulting from the 2015 CITS Governance Review (FCS-15-139),
City is responsible for all major building components. This includes substructure, envelope,
interior construction & finishes, services (plumbing, HVAC, electrical, fire protection) and most
site components. The Washroom Renovation Project addresses required capital renewal of
several of these components.
The scope of work as applied for was budgeted in 2019, prior to the pandemic. The ICIP grant
provides $2.2M in funds towards the total project budget of $3.0M, with the City contributing
funding of $0.
and testing for hazardous materials in the area of renovation.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Colliers Project Leaders were retained to manage the project on behalf of CITS and the City,
and Cornerstone Architecture were retained to provide design, costing, construction
documentation and contract administration services for the project. Understanding the budget
constraints and the requirements to satisfy the grant application, a design was approved and
cost was monitored throughout the construction documentation process.
REPORT:
FM and CITS staff, Colliers and Cornerstone met on several occasions to review the scope
n
documentation stage prior to tender. The estimate indicated that the project was likely to be
overbudget by $190,000 or 7%. All parties believed this figure was an acceptable risk
understanding the current construction market, so the bid documents were issued.
The lowest construction bid received was $3.4M and was significantly over the original 2019
pre-pandemic construction budget. The grantor (ICIP) was advised of the project coming in
over budget and an inquiry was made about the availability of extra funds. Feedback received
indicated there are no additional funds available and the majority of grant funded projects are
in the same situation.
Last year has presented significant challenges to accurately estimate construction costs. The
main factors that have been driving the unprecedented increase in construction costs are
described below:
1. Supply & Demand: Construction pricing is highly sensitive to the forces of supply and
demand. Cutting pricing is inherently risky and can equate to a lot of work for little or no
reward. Thus, when demand is high, construction pricing increases to reduce this risk.
2. Backlog: Backlog is the amount of construction work currently on the books. When
there is a high volume of available construction projects backlog and pricing increase
this reflects a strong construction market. creating a buffer. This allows construction
companies to charge premiums for their work.
3. Labour Costs: Construction is labour intensive. Because of this, a large portion of
construction costs are determined by labour expenses. The current shortage in skilled
labour increases premium wages contractors must pay to retain their force.
4. Commodity Pricing: Oil, lumber, steel and copper commodity prices - the raw
materials for construction materials - are at an all time high. This results in higher supply
and shipping costs.
5. Local Market Disruption: The golden triangle is rapidly expanding which strengthens
the risks as described above. Labour shortages, increased backlog, high commodity
costs and out of control supply chain delays coupled with the pandemic transfers a
greater amount of risk to the owner.
The proposed washroom renovations at the Centre in the Square represent the minimum
requirements to satisfy the ICIP grant and achieve the benefits of increased capacity, inclusive
and accessible options for all patrons.
Reducing the scope of the renovations to lower costs would bring the project well below the
intent applied for in the grant and would most likely reduce the amount of grant funding that
would be received. As well, a reduction in scope would also require a change in the
agreement, which would take 3-6 months to complete based on information provided by the
grantor. This delay would force a re-tender of the project for construction in summer of 2023
resulting in the potential for even higher construction costs.
STRATEGIC PLAN ALIGNMENT:
strategic vision through
the delivery of core services.
FINANCIAL IMPLICATIONS:
The total costs for the CITS washroom renovation (including contingency) is projected to be
$4.6M. The total project budget is $3.0M, leading to a projected shortfall of $1.6M. Staff have
(SOGR) projects that could be reallocated to the project as shown in the table below.
Total Project Costs and Proposed Funding
Pre-Construction / Design / PM$ 612,593.65
GEN-PRO Tender (Construction)$ 3,416,500.00
Construction Contingency$ 574,852.00
Total Project Costs$ 4,603,945.65
ICIP-CCR Grant$ 2,199,900.00
Approved Matching Funds from City$ 800,100.00
Reallocation: CITS Projects$ 1,043,945.65
Reallocation: State of Good Repair (SOGR) Projects$ 560,000.00
Total Project Funding$ 4,603,945.65
This level of budget reallocation will have an impact on the capital program at CITS, and reduces
the amount of funds available to complete other projects at the Centre. Facilities Management
staff have reviewed the planned reallocations with CITS staff, who agree with the reallocation of
funds to the washroom project. The CITS projects being deferred include HVAC replacements,
building exterior, and lighting upgrades. Likewise, the reallocation of SOGR funds to the CITS
reactive projects throughout the year. Funding for both the CITS and SOGR capital projects will
need to be reviewed, reprioritized, and potentially increased in future budgets to effectively
manage building components as they approach the end of their useful lives.
COMMUNITY ENGAGEMENT:
INFORM of the
council / committee meeting.
APPROVEDBY: Denise McGoldrick
General Manager, Infrastructure Services