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HomeMy WebLinkAboutFIN-09-153 - Infrastructure Stimulus Project Update (Dec 2009)J KrTC~r~R Financial Services REPORT T0: Councillor Berry Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee DATE OF MEETING: December 7, 2009 SUBMITTED BY: Dan Chapman, General Manager of Financial Services and City Treasurer PREPARED BY: Jaya Chatterjee, Junior Financial Analyst, Financial Planning WARD(S) INVOLVED: All DATE OF REPORT: December 2, 2009 REPORT NO.: FIN-09-153 SUBJECT: STIMULUS PROJECT UPDATE -DECEMBER 2009 RECOMMENDATION: THAT the Mayor and Chair of the Finance & Corporate Services Committee be directed to contact local MP's, MPP's, and relevant Provincial and Federal Ministers, to seek resolution of the following issues related to the City's infrastructure stimulus projects: • Aquatic Facilities Upgrades-Confirmation of RInC project approval Solar Roof on Consolidated Maintenance Facility -Timeline for consideration of conditional OPA contract Sportsworld Arena Capital Improvements -Confirmation of support for `Cost -plus' approach to construction BACKGROUND: This report is part of a series of bi-monthly updates to Finance and Corporate Services Committee on the status of the City's Stimulus Funding Projects. This reflects a commitment to ensure that these infrastructure funds is spent in an open, transparent and accountable manner and that Council is afforded an opportunity to track the progress of these projects on a regular basis. REPORT: Section 1 -Project Status Update Appendix "A" provides a summary of project status and Appendix "B" depicts the progress towards completion of each project compared to the planned timeline. The City has received a 25% advance for all nine ISF projects based on expenditure forecast for 2009-2010. 6-1 Section 2 -Expedited Purchasing Measures Council has previously approved a number of purchasing measures to expedite projects receiving funds under the Infrastructure Stimulus Program, while still maintaining a fair, open and transparent procurement process. The measures, along with comments on their utilization, are outlined below: Expedited Purchasing Measure ~ Utilization The Mayor and Clerk are authorized to sign Provincial and Federal agreements as they relate to the Infrastructure Stimulus Fund and the Recreational Infrastructure Canada Fund, subject to the satisfaction of the City Solicitor. ISF Contribution agreements have been received and executed after being reviewed by the City Solicitor. CAF letter of offer has been received and executed by the City Solicitor. RInC agreements are still pending. The Chief Administrative Officer is designated to award tenders on Infrastructure Stimulus Fund projects provided that the costs are within the projected expenses outlined in the applications and they are reported to Council by way of the bi-monthly update report. Consultants involved in the preliminary phases be retained and the consultant selection process be waived for following projects mentioned below: • McLennan Park -Walter Fedy Partnership • CMF Improvements - Giffels Associates Limited/ IBI Group (Architect consulting services) • CMF Improvements -Morrison Hershfield Limited (Mechanical and Electrical consulting services) • CMF Improvements -Morrison Hershfield Limited (LEED consultant services) For Consultant projects over $100,000, cost information is to be included with the original submission, the interview process is to be waived, and the selection will be based on the original submissions. For Bridgeport Community Center, expression of interest for Consultant has been awarded to AECOM with CAO's approval on Oct 20t". Cost of the award is $218,925. Relative total budget of the project is $2,249,740. There is a tight schedule for this project and a delay might jeopardize the project. Province confirmed this project after a delay of almost 2 months. This measure has been effective at expediting the project timeline. This measure has been effective at expediting the following projects: • Storm Water - Infrastructure Rehabilitation • Bridgeport Community Centre - Architect Expression of Interest For Storm Water Infrastructure Rehabilitation projects, involving drainage upgrades only will be delivered by general contractors under existing construction contracts through a standard change order process as per This measure has been effective at expediting the project timeline. 6-2 purchasing guidelines. That the Mayor and Clerk be authorized to This measure has been effective at expediting execute a 'cost plus' agreement with Ball the project timeline. The City is still awaiting Construction for the completion of the design Federal government approval of this approach. and construction of Sportsworld Arena improvements to an upset limit of $900,000; said agreement to be to the satisfaction of the City Solicitor. The King Street reconstruction project be This measure has been effective at expediting delivered by general contractors and the project timeline. consultants under existing construction contracts and consulting contracts through a standard change order process as per purchasing guidelines. That the Mayor and Clerk be authorized to This measure has been effective at expediting execute any amendments to Agreements the project timeline. pertaining to Projects for which funding is approved through the Infrastructure Stimulus Fund, the Recreational Infrastructure Canada Fund and the Community Adjustment Fund, if necessary, and provided said amendments are satisfactory to the City Solicitor. Section 3 -Federal/Provincial Program Updates Staff resubmitted additional information on the Aquatic Facility Upgrade project (RInC) on August 17, 2009. There has been correspondence going between Staff and the Ministry for the last 3 months. The Ministry last updated on Nov 7, 2009 that they are reviewing the City's application. Staff has submitted an application to the Ontario Power Authority for approval of the CMF Solar Roof project under the Feed In Tariff program. As requested by OPA, Staff have compiled and submitted additional information related to Solar Roof. It is anticipated that applications will be reviewed soon and that initial conditional contract will be made with OPA on Feed In Tariff program in 2009. Delayed approval might jeopardize the overall timeline for this project. Staff continues to dialogue with OPA with respect to application status. As requested by the Province, staff submitted information and changes required for the draft RInC contribution agreement on October 14, 2009. Since the City's approach for Sportsworld Arena, specifically the use of a `Cost plus" agreement, was a variation on normal purchasing processes, the federal government was advised. Management Committee at the federal level is still reviewing the `Cost plus' approach and there has been a resulting delay in the City's ability to execute the agreement with Ball Construction and commence the project. Section 4 -Other Information A Junior Financial Analyst has been retained for up to 24 hours per week over atwenty-two month period to assemble cost documentation, facilitate quarterly reporting and claim 6-3 submission, and support overall program coordination including regular reporting to the Finance and Corporate Services Committee. In light of the current workload, the working hours of the Junior Financial Analyst assigned to this program were extended from 24 up to 35 hours per week over 3 months until the end of December 2009. Since that time, it has become clear that this portfolio continues to require full time attention, as the Junior Financial Analyst is playing a larger role than was originally envisioned, including assisting in the coordination of the projects (such as the OPA feed in tariff application), agreement finalization, project scheduling, etc. As a result, the working hours will be extended by 11 per week for another six months until the end of June 2010. FINANCIAL IMPLICATIONS: The anticipated cost of extending the Junior Financial Analyst from 24 to 35 hours per week until the end of June 2010 will be $9,500 and will be funded out of the City's capital contingency. COMMUNICATION: To assist in ensuring the infrastructure stimulus funds are spent in an open, transparent and accountable manner, staff continues to implement the communications strategy that has been developed to assist in tracking the progress of all 12 projects. The strategy contains various communications tools that will give residents an opportunity to follow the work that is underway on each project. Communication updates include: • Federal and provincial signage has now been installed at all project sites, recognizing federal and provincial funding support; only federal signage was required to be installed for the King Street reconstruction project, as it's supported by the federal Canada Adjustment Fund; • Project-specific web pages, featuring an interactive map showing all project sites, is updated on a bi-monthly basis to ensure auser-friendly way for citizens to access information on each project. The web pages include background on each project, as well as status updates as they are provided by the project managers; • Project progress continue to be included in every edition of Your Kitchener; this process will continue until the projects are complete; and • Media releases andlor media events are planned for the completion of each project. 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