HomeMy WebLinkAboutCRPS-06-036 - Hazardous Materials Abatement Costs for Forsyth DemolitionReport To: B. Vrbanovic and Members of Finance & Corporate Services
Committee
Date of Meeting: March 6, 2006
Submitted By: G. Sosnoski, General Manager of Corporate Services & City
Clerk
Prepared By: L. Proulx, Director of Facilities Management
Ward(s) Involved:
Date of Report: February 28, 2006
Report No.: CRPS-06-036
Subject: Hazardous Materials Abatement Costs for Forsyth Demolition
RECOMMENDATION:
That a purchase order in the amount of $150,000 be processed for the payment of costs related
to hazardous materials abatement, with the work to be paid from the Economic Development
Investment Fund, for the Forsyth buildings phase 1, 2 and 4 as outlined in report CRPS-06-036.
BACKGROUND:
Council will recall that we were compelled to demolish portions of the Forsyth buildings,
specifically phases 1, 2 and 4 of the complex, in response to an order from the Chief Building
Official declaring the buildings unsafe. It is our normal practice to remove hazardous substances
from a building to be demolished prior to tendering the demolition. In this fashion, the demolition
contractor cannot make claims for extras that pertain to hazardous material issues. In this
instance, given the safety issues, this could not be done.
The tender for demolition for phases 1, 2 and 4 was awarded in the amount of $193,000. This
total did not include any costs associated with abatement of hazardous substances.
REPORT:
As we reported previously, the City is incurring costs now to deal with environmental issues.
Invoices are produced and these are verified by our environmental consultant then they are
processed for payment. These invoices have been trickling in since the project started and in
the process will continue for some time. Since these costs exceed the 10% limit in the
purchasing policy, staff are bringing this report forward seeking Council approval to proceed
with the necessary abatement work to comply with provincial regulations.
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February 28, 2006
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Incidentally, the total of these costs will be less than the cost the City would have incurred had
we had the opportunity to do abatement in the normal fashion, in advance of demolition,
according to our environmental consultant.
The need to demolish the building prior to removing all hazardous materials resulted in the
necessity to separate the environmental remediation costs from demolition costs. As a result,
some hazardous materials were combined with the demolition debris. It was assumed that the
Region would accept material such as bricks for construction of roadways at the landfill site;
therefore, avoiding tipping fees. The Region has since looked at the demolition site and have
rejected the option of using it as road base due to the mixture of contaminated materials and
other debris. The contamination for the worst part originated with lead paint used on the bricks
and on some wood materials. We are required to and our environmental consultant
recommends disposal of site debris as landfill. The additional amount of $92,500 is required to
pay tipping fees related to hazardous materials.
FINANCIAL IMPLICATIONS:
Cost incurred to date:
$20,890
Additional cost per report above pertaining to environmental: $92,500
Total to date: $113,390
Estimated upset limit of further abatement: $36,610
There is only one other cost we can predict for phases 1, 2 and 4 of the Forsyth buildings. We
are proposing to regrade the site by backfilling and will be providing options and costs for
alternate short term use of the site.
L. Proulx, CET CMM III
Director of Facilities Management
LPlcr