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HomeMy WebLinkAboutCSD-10-008 - Consolidated Maintenance Facility (CMF) Project Update - Jan 2010REPORT REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: January 25, 2010 SUBMITTED BY: Pauline Houston, General Manager of Community Services PREPARED BY: Cynthia Fletcher, Director of Facilities Management (ext. 2424) WARD(S) INVOLVED: All DATE OF REPORT: January 15, 2010 REPORT NO.: CSD-10-008 SUBJECT: CONSOLIDATED MAINTENANCE FACILITY (CMF) PROJECT UPDATE - JANUARY 2010 RECOMMENDATION: For information. BACKGROUND: On September 14, 2009, Council received staff report CSD-09-049 which provided a status update on the CMF project to that point in time. In addition, a revised budget to incorporate infrastructure funded enhancements and LEED components, as well as some project funding adjustments, were approved. REPORT: This report provides a status update on the CMF project from September 2009 to January 2010. 1. Project Status TasksTotal TasksCompleted% Complete Project Initiation & 3030100 Planning Project Administration 1022120 Managing Change 842328 Facility Development 724034 Sub Trades Tenders 3812 Construction 195TBDTBD Business Continuity 5215 Property Disposal 241371 Wabanaki Drive 72 ê ó ï Site & Building: Project is proceeding on schedule and on budget, but we are still in the preliminary stages of gearing up for full tendering/awarding/constructing. Architectural drawings have been completed for submission of building permits, refinement of drawings will continue through January. People, Process and Service Integration: Service process reviews are underway by 8 groups looking at common or cross-divisional processes and 5 groups looking at their own divisional specific services and processes. Work to be wrapped up by the end of January 2010, after which all findings and recommendations will be presented to the Project Administration Team. Schedule: Short-Term Major Milestones for the next 30-60 days Date Milestone Target Date Completed Comments Demolition Starts Feb 19, 2010 In progress Demolition of 2 story metal structure, concrete floor in shops area. Site Plan Approval Jan 15, 2010 In progress Expect completion and approval of Site Plan so that Building Permits can be obtained People Process & System Jan 31, 2010 In progress 14 Common Functions Service Integration (PPSI) groups to complete review and provide recommendations. 5 Divisional groups, headed up by Directors, to complete review and provide recommendations. Building Permit Obtained Jan 29, 2010 In progress Permit ready Architectural Drawings Completed by December 31, 2009 and permit applied for first week of January, 2010. Construction Tenders Issued Feb 25, 2010 In progress Various tenders to be issued as per Tender Schedule Sequencing. Up to 21 of the 38 total tenders are targeted to be issued Jan-Feb. Schedule: Long-Term Major Milestones through to completion Date Milestone Target Date Completed Comments People Process & System June 30, 2010 PPSI group to validate and implement Integration (PPSI) recommendations, service process enhancements, Required training for new service enhancements will then begin. Construction Tender June 24, 2010 38 Tender packages have been Sequencing Continues identified for issuance as of December 31, 2009 2. Project Risk Assessment and Management This project has a strong focus on risk management. Since the original risk assessment prepared in July 2008 by KPMG where 45 active risks were identified, 40 of which were rated high in priority, a rigorous risk review process has been put in place, requiring regular monitoring and management of identified risks by both the project team and the Internal ê ó î Auditor. It is not uncommon in projects with a broad scope such as the CMF project, to have the number of active risks fluctuate a great deal throughout the life of the project as mitigation strategies are put in place and new risks identified. Currently, the project is tracking 25 active risks, of which 13 are rated high in priority. Key risks that will continue to require diligent and careful monitoring include project scope, budget and completion schedule. 3. Budget From a cost management viewpoint, project spending is strictly controlled and within the allocated budget. Council has approved project funding $48.2 million for the base budget plus $14 million for infrastructure funded enhancements and LEED components. To ensure spending remains on track, the project’s cost management team reviews project finances on a regular basis. Emergency Power 4. The CMF budget includes provision for a number of areas of the CMF to be on emergency back up power: • CCC • IT server rooms • back up Emergency EOC area • salt storage facility • fuelling station The Project Team and Steering Committee reviewed the cost versus need of having the entire facility on back up emergency power. The conclusion was to include the above listed components, at a cost of $250 000, rather than include the cost of the entire facility at a cost of ~$1,000,000. The risk was deemed low with the current decision. Most other operational areas could continue functioning with emergency lighting and phones operational. The Fleet area would not be operational during power outage, but is also the most costly to include on emergency back up power. Staff analysed the impact of the inability to repair vehicles during a power outage. It was deemed the only service area that was dependent on ê ó í specialized equipment, could not post pone service and did not have back up vehicles, was snow plowing. For a power outage to significantly affect this area, the event would have to occur in the winter, knock power out for a significant period of time, include snow plow(s) break down etc. Staff weighed the odds of occurrence against the cost and determined the current design strategy. Staff will also investigate contingency arrangements for these remote situations. FINANCIAL IMPLICATIONS: None. COMMUNICATIONS: Now that a fully integrated project plan has been completed, a full and detailed communications strategy for the consolidated maintenance facility (CMF) project is in place that targets all of the audiences and stakeholders who will be affected either directly or indirectly by the new facility, including city staff, city council, the general public and the residents of nearby Hidden Valley. The strategy also includes tools and methods for reaching all of these audiences with information as the project progresses, and especially at significant project milestones. CONCLUSION: The Consolidated Maintenance Facility project continues to be a high priority project for the organization, which will create the opportunity to deliver enhanced service for our residents. The original project budget commitment for the base project continues to be maintained while allowing adjustments to the project schedule and funding sources in order to accommodate the City’s contribution to the Infrastructure Stimulus program enhancements to the project. The funding shortfall identified in the original budget has been reduced and mitigation strategies as previously identified will continue throughout the life of the project. The next Project Status Report will be provided to Finance and Corporate Services Committee in April 2010, based on a quarterly update schedule. This report is submitted on behalf of the CMF Project Steering Committee comprised of: Pauline Houston, General Manager of Community Services (Project sponsor and chair) Troy Speck, General Manager of Corporate Services Larry Gordon, Chief Purchasing Officer Wally Malcolm, Director of Utilities Don Miller, Director of Fleet Jim Witmer, Director of Operations Tracey Hare Connell, Executive Director of People Services and Organizational Development Michael May, Director of Corporate Communications and Marketing ACKNOWLEDGED BY: Pauline Houston, General Manager of Community Services ê ó ì