HomeMy WebLinkAboutDTS-08-052 - King Street Streetscape Project Update1
I~ITCHENER - - • -
Development &
Technical Services
Report To: Dounail and committee of thel~vhale
Date of l~eetin~: April 1, ~~~8
Submitted By: ~C. grant Murphy P.Eng,
Director, Engineering Services
Prepared By: K, grant Murphy P.Eng,
Director, Engineering services
Vl~ard{} Involved: All
Date of Report: April 4, ~a08
Report No.: DTS 08 ~ D2
Subject: KIIV STREET TREETAPE PR~JET UPDATE
RED~MMENDATI~N:
THAT staff be directed to pause the timing of construction an the King street Streetscape in
order to complete a value engineering assessment which will confirm the engineering cost
estimate and provide a revised estimate based an selected changes to the design and type of
materials to be used, within the framework of the approved Pedestrian Theme.
THAT staff submit a report to Dounail on May 20, ~~~8 an the results of the value engineering
assessment.
E~CE~UTIIIE SU~IIVIARY:
The purpose of this report is to provide an update on the activities completed to date related to
the design of the Ming Street treetscape project and to provide ~auncil with information on
revised cast estimates for the project that have been developed as staff and consultants have
worked to finalize the project design and tender package,
In light of new information which clearl}~ shows the potential far the project to cast more than the
approved amount of ~.SM staff felt it imparkant to clearly outline far Douncil the potential risks
related to proceeding with this project as it is currently designed.
To help mitigate the potential of this project running aver budget staff are recommending that
the majority of the construction an this project be paused at this time to evaluate the design of
the project and the materials recor~r~ended far use on the new streetscape ~va~lue engineering
assessment},
staff believe it is prudent to pause construction at this time sa that tl~e pity can ensure the project
is dare correctly while reducing the overall projected cost of the new streetscape and increasing
the confidence of Dounail, staff and the public in the financial projections of the project,
~n April 24, 2007, the King street Master Plan praject committee conducted a streetscape
design workshop end charretteF The workshop car~r~enced with a presentation followed by a
general overview and n approach for the stakeholder charrette. The approach encouraged
stakeholders to comment an ~ series of questions focusing on themes far King street.
~n May ~, 200?, the praject team presented the design themes and streetscape concepts at
the first of three public consultation centres. Based an the theme approach, parkicipant were
asked to comment on design concepts and elements that can be added to enhance King treet~
Each design concept included an image to illustrate haw King street might look based an each
theme. A series of elements were listed far each theme and parkicipants were asked to select
which items they'd like to see an King Btreet,
used an the public's feedback and detailed review by the steering Committee, the Pedestrian
First model {Concept }was the preferred option. The Pedestrian First model involves
narrowing King street in the City Centre District to widen sidewalks and improve accessibility,
including upgrades to both the design and surface treatment of major and minor intersections,
The area directly in franc of City l-iall will be designed as a special civic area that can be easily
closed and used for special events. Parking spaces will be converked and relocated to give way
to avehicular drop off and loading ~one~ A rolled curb will be introduced for King street from
Frederick to Victoria to improve pedestrian movement and irnprave accessibility.
~n September 26, 2007, preliminary design drawings for the pedestrian first, streetscape design
far the King street speakers Career were submitted to the City and steering Committee for
review as park of ~0°~a design submission. A revised design was later released far public
consultation an October ~ ~ , 2001 at Vv. L.U. shoal of social VlJark,
In December 2007, a 00°l~ design package and a detailed business case were presented to City
Council for its cansideratian. Atthat time City Cauncilecr-marked ,~8M in capital funding far
the King street treetcap and Bpeaker's Garner project.
On February 4 the f final budget far the praject was approved by Council as part of the City's
2008 budget process.
Additionally, a proposal was submitted to the Province of ~ntaria, as part of the Municipal
Infrastructure Investment Initiative program and on March 28 the City received 3.2M. The
provincial government recently announced the City was successful in securing those provincial
funds far the King Btreet treetscape project.
REPORT:
Throughout the winter of X007-08, Cit}~ staff and IBI raup continued to work an completing the
detailed design and tender documents. The King street treetscape design proposes a new
"Pedestrian First" high quality streetscape which will allow for additional sidewalk widths, new
street furniture, new pedestrian-oriented lighting, and new surface treatments for the roadway
and boulevards to create a vibrant and exciting downtown "Main Btreet".
As part of this additional work, in early 2008 staff began to work cooperativel}r with the KDBA to
develop a construction schedule for the project which would be acceptable to local businesses,
would provide them with certainty around the timing of construction sa that they could plan for
their operations, and v-rhich would create minimal disruptions to businesses and downtown
special events run throughout the sumnner months.
The design includes nnany materials and project specific details that are not typical to the pity's
usual roadway reconstruction projects, A mare analysis was completed during detailed design
meetings throughout the 2gOl-g winter season it was Hated by the 161 Oraup that the approved
budget could b exceeded by a significant margin ~i,e. greater than 25°l~}.
In addition, it became clear that the use of these specialised materials, slang with a very
ambitious implementation schedule has resulted inconsiderable uncertainty aver the
construction cost estimates for this project,
In an attempt to gain a better understanding of the increased cost projections far the project
staff instructed the 161 Group to complete a detailed design cost estimate prior to releasing the
bid packages to the field of pre-qualified cantractors~
Based on the work the IBI Oraup completed in response to staff's request far a greater
understanding of the cast increases, the IBI Group provided revised cast estimates far the
project that range between an additional $2M - 41VI. According to the IBI group there are five
key components of this project which have significantly affected the overall construction costs:
construction phasing and staging; tinning of the tender; surface treatments ~i.e, granites; street
lighting, and; other ambient lighting.
One of the major contributors to the increase in the cost projections by the l61 gaup relates to
the significant Increased cast far installing granite curbing and pavers as a part of this project.
vl~hen the project committee first considered using granite curbing and pavers, the cost for the
material was relatively equal to that of other high end curbing materials, l~pon furkher
investigation of this option it is nova clean that the price for granite varies greatly depending on
the colour, texture and availability. The cost far using granite curbing and pavers ranges from
~ to ~I~JI. This v~ride range in cast for this single material adds a significant risk factor to the
overall cost of the project.
After working directly with the IBI Oraup, and considering all of the factors which are contributing
to a potential increase in the project cast, in mid-I~larch it became clean to staff that the budget
of $5.81111 as approved bar pity council in February ~gg8 would not be adequate to provide the
quality of finish and materials that are included in the current design.
liven staff's concerns around the new project cast estirr~ates, the completed construction-Heady
tender packages and drawings which were originally scheduled to be released in early lUlarch
have Hat yet been issued for bidding,
Proposed Op#ions for Loving Forward:
Staff have considered a number of options far moving forward with this project which are
detailed below.
O tion 1 -Proceed to Tender Immediate)
~ Na change to the finished quality of the project.
• No changes to the project phasing but there gill be a delay in starting certain sections along
King Street {e,g, Oaukel to Ontario Hat starting until raid-,dune instead of raid-April}.
• flay require three ~}full gears of construction and delays in timing of phases,
• There are challenges with lead times to order the granite curbing and pavers, potentially
upwards of weeks,
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• There i 12 to 1 week lead-time far the decorative street#ighting,
The tender docur~ent and drawings are campleted and a report dealing with contractor pre-
qualificatians is ready to be presented to council,
• Fram the release of the tender potentially April ~ a minimum of two weeks will be needed
far the contractors to review the tender end prepare their bids, Due tv the complexity of the
planned design, it would be highly likely that there will be addndums and requests far
clarification end Thus causing further delays,
• Pevievu of the tender packages would need to be campleted and a report to council would
be available on May ~~.
• anstruction would not likely start before June , due to completion of contract dacuments
and contractor mobilization, This would roost likely be unacceptable to the KDBA see
communications section of this report}.
• Patential far very high fluctuations in casts due to late tendering period and thus exceeding
the approved budget,
• Vllauld oat jeopardize the provincial funding received for the project.
Dption ~ - Deferral of Praiect Indef~~tel~r
Defer King Street Project completely until ~DD9 and re-prioritize it against other projects.
• Potential loss of provincial funding for project,
~ tion -~ ~Iladif Phasin and Kee current Deli n
~ No change to the finished quality of the project,
• Changes to the project phasing, in atherwards, change what order sections get completed
and also delay certain sections along King Street ~e,g. starting at Ontario and going south-
easterlytinstead of aukel}.
• May lead to three ~} to four ~4} years of construction.
• There are challenges with lead times to order the granite curbing and pavers, potentially
upwards of 8 weeks.
There i ~ ~ to 'I ~ week lead-time for the decorative street-lighting
• From the release of the tender potentially April S} a minimum of two weeks gill be needed
for the contractors to review the tender and prepare their bids. Due to the complexity of the
planned design, it would be highly likely that there wi11 be addendums and requests far
clarification and thus causing furtherdelays.
Review of the tender packages would need to be completed and a report to vuncil would
be available on flay ~D.
• anstruction would oat likely start before June 2, due to completion of contract dacuments
and contractor mobilization. This would rr~ot likely be unacceptable to the KDBA see
cor~municatians section of this report}.
• Patential forvery high fluctuations in costs due to late tendering period and thus exceeding
the approved budget.
• vVould not jeopardize the provincial funding received for the project
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~ptian 4 --1~alue En_gineerin_q Assessment of Exi~tin~ Dc~eil~n
• Camille#e ~ value engineering assessment, which would look at ways to reduce the overall
projected casts an the project b looking far ways to optimize the design and patentiaily
reduce the quality of the materials being used.
• Additional time would be required to re-design the pra~ect and this would increase
engineering casts.
• Re-scope the project to do same of the work in ~~~~ ~i.e. speaker's Corner}.
• Could release the tender an May ~a for the speaker's Corner pardon, A r~inimum of two
weeks are needed for the can#ractars to review the tender and prepare their bids. There
r~~y be fewer addendum an this portion due to its reduced scope.
• Review of the tender packages far speaker's Corner would need to be carr~pleted and a
recor~mendatian far contract award made to Council an June ~~
• Construction would not likely start before July ~, due to completion of contract documents
and contractor mobiii,zatian.
• Revise the design during the summer months on the majority of the ~Cing street treetscape
portion and release ~ tender in September.
• There may be same efficiency losses due releasing two tenders an this project.
• Potential for very high fluctuations in costs estimates can be reduced.
• May lead to three ~~} to four ~4} years of construe#ian.
• 11Vill not jeopardize provincial funding,
The potential benefits and risks with each of these four options are summarized below:
~p~ion Time G~uality Cosh
option #~ - Pro}ect will be delayed and The current design will significant cost increases
Proceed to Tender will cause concerns for provide the expected are being projected due
Immediately local businesses {see high quality finish and to use of specialised
cammunlcations section of life cycle slang King materials ~i.e. granite}
this report}. Delay street. and construction
schedule but complete techniques,
work in the original year.
option # - No Project ~- No delays King treetscape quality Project budget would be
Deferral of Project is not enhanced reallocated to other
Indefinitely priority projects.
Provincial funding would
not be accessible,
option # ~ Modify Phasing will be delayed. The current design will significant cost increases
Phasing and Keep The new project schedule provide the expected are being projected due
Current Design will extend the project high quality finish tv use of specialised
beyond ~~~~. materials and
construction techniques.
option #4 -Value Phasing will be delayed. The quality of finish may Cost could be reduced
Engineering The new project schedule be reduced somewhat Glaser to the approved
Assessment of will extend the project frorr~ original budget within acceptable
existing Design beyond ~~1 D. expectations in an tolerance level} and
attempt to contain costs. provincial funds can be
accessed.
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The campletian of ~ value engineering assessment an the praject design would include:
^ the validation of the current cost estimate by a certified quantity surveyor;
^ the development of other design options {i.e. three} for the >rCing street treetscape project
that would look at adjustments to the design and the qu2~lity of rrraterials being used as a
way of lowering the averall project cast before praceedir~g with the start of canstructian.
In the end, the value engineering assessment would pravide ~auncil, staff and the public with
greater degree of confidence in the anticipated posts of the project while finding ways to reduce
the averall project cost to be in line with the budgeted ar~aunt previously approved by Council.
Fallowing the value engineering assessment, staff will revisit the design of the project and the
materials used. lased an that detailed review of the new design options, revised tender
package would be issued during the last quarker of ~ODB.
one of the main issues staff heard from members of the KD~A through their discussions in
early 2aa8 was the need to pravide businesses v~vith certainty around the scheduling of
construction as early ass possible so that the businesses could plan appropriately.
~y issuing the tender in the last quarker of ~D08, this would pravide staff with the opporkunity
and time to work closely with the successful bidder and the I~~BA to finalize a canstructian
schedule as early a possible,
At this paint in time, staff believe there is a passibility that the speaker's corner portion could
proceed during the ur~rner of ~~a8. staff could proceed to issue a tender package to pre-
qualified contractors in May ~g4.
In addition, given staff's recommendation at this time is simply to pause the timing of
canstructian, staff will continue to work on completing other elements contained in the Ding
street treetscape business case related to urban vitality die. digital projectors at City {all}.
FINANCIAL IMPLIATI01~:
There would bean inorease in the engineering costs, It is anticipated that to hire a third party
certified quantity surveyor would be about $~,aa0 and would be funded from the praject funds.
There gill be subsequent design and tender dacur~ent changes and there gill be additional
engineering fees required to complete this work. A report related to the estimated additional
engineering fees, will be braughtforward to council fortheir review and consideration in May.
OMIVII~NI~A~fI~N:
In recent months pity staff have been communicating with, and working with, the I~CDBA to
develop a construction schedule which would be acceptable to do~rntawn businesses and which
would meet the pity's objectives far averall timing on this praject.
staff have also been working with the marketing committee of the KDE to get their input and
suggestions an the development of fu11 and extensive communications plan farthis project
n March 4, ~~g8, pity staff wrote to the Executive l,~irector of the 4~I~BA to outline a proposed
schedule far construction and to indicate same of the challenges in working an such a complex
canstructian praject. That scheduled v~ould have had canstructian begin on April g and
continue until na later than September ~ ~. It i now clear to staff that that proposed construction
schedule is not passible given the issues raised earlier in this report.
In response to that Larch 4 setter, on Larch ~ the KDBA responded to pity staff highlighting a
number of outstanding issues related to the project which they wanted to work through v~rith the
pity. I n that letter the KDBA wrote:
"The critical issue which has came hack from the membership and reviewed and
supported by the KDBA Board of Directors is the 'tart Date' of construction. It is the
request of the Baard of Directors and n~er~bership of the KDBA, if the construction does
not start by the specific date of April a#~, 2D08 a identified in the plan; the construction
plan as presented be delayed until ~0~9."
staff have taken this information and the KDBA' position on the timing of construction into
consideration in making their recarr~mendatian to pause the majority of construction.
An advance copy of this report has been shared with the Executive Director ofthe KDBA.
DNCLUI~N:
There are three key components in any project, time, costs and qualityt by adjusting one of
these variables it affects the others in same significant rnar~ner. Far example, if a high quality
finish is specified by a client then it will cost mare and likely require more time to complete than
a lower quality finish.
In the case of the King street treetscape Project, a high quality finish i being specified along
with a very demanding time-frame, as such, the cast of the project risks being significantly
higher than a normal streetscaping project,
By pausing the impler~entation of the project in arderto conduct a value engineering
assessment of the current design far the streetscape project, staff can lack far ways to reduce
the overall cost of the project. By taking our time to ensure this project is done right, we can
produce a high quality new stretscape for King street while increasing the confidence of
our~cil, staff and the public in the financial projections Earths project.
K. Cant Murphy .
Director of Engi ing ervices
Development and ec nical services Department
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