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HomeMy WebLinkAboutCSD-10-010 - Capital Funding - Kingsdale CC!- • -vmmur+ -~rvFces REPORT TO: Mayor Carl Zehr and Members of Council DATE OF MEETING: February 22, 2010 SUBMITTED BY: Pauline Houston, General Manager, Community Services PREPARED BY: Pauline Houston, General Manager, Community Services (ext. 2646) WARD(S) INVOLVED: 3 DATE OF REPORT: February 10, 2010 REPORT NO.: CSD-10-010 SUBJECT: CAPITAL FUNDING FOR KINGSDALE COMMUNITY CENTRE RECOMMENDATION: That the funding sources totalling $458,000, identified in Table #2 of report CSD-10-010, be approved and allocated to the Kingsdale Community Centre construction project, resulting in an overall revised project budget of $4,148,000. BACKGROUND: The Kingsdale Community Centre construction project has a budget of $3.69 million. Based on the second round of tendering, it is estimated that this redevelopment project will have a funding shortfall of $458,000. The purpose of this report is to outline for Council's consideration funding options for the above capital project so that construction can commence as quickly as possible in order to meet the January 1, 2011 timeline for the Kingsdale Community Centre opening. REPORT: Bids from the second tender are now in and staff are recommending that the low bid be approved (refer to tender report FIN-10-018). Staff is recommending that approximately $458,000 be added to the $3.69 million budget. The additional cost can be attributed to two components. First, the $3.69 million was a "C" class estimate, an estimate that staff endeavored to maintain. However, in the end, staff was unable to meet this target largely due to the necessary replacement of the roof (due to insulation issues) at a cost of approximately $368,000. There were also other items that contributed to approximately $40,000 including escalation for inflation, as well as some other unforeseen issues that come with a deep renovation project. 4-1 Second, the budget was developed when staff was considering the construction and renovation of a LEED Silver facility. In accordance with Council approved policy, staff is required to consider constructing and renovating facilities to LEED Gold standards, if feasible, which in this case added $50,000 to the cost of the project. If approved, this Kingsdale Community Centre will be a good sized building, approximately 16,500 square feet. Table #1 -Financial Summary - Kinasdale Community Centre All Years Outstanding Total Total Projected Actual PO's to Date Bud et Actual Variance REVENUES Capital out of Current 3,201,000 3,201,000 3,201,000 3,201,000 - Contribution from Development Charges 489,000 489,000 489,000 489,000 - Total Revenues 3,690,000 - 3,690,000 3,690,000 3,690,000 - EXPENSES Furniture, Fixtures and Equipment 0 - 206,000 206,000 - Construction Costs (including 10°k contingency design) 13,351 13,351 3,306,211 3,306,211 - Construction Contingency 0 - 202,000 202,000 - Consultant Fees 247,253 39,807 287,061 305,000 305,000 - Facility Management Fees 4,667 4,667 61,500 61,500 - Artwork - 1 °k 30,500 30,500 30,500 30,500 - Staffing Support 34,000 34,000 36,000 36,000 - Total Expenses 329,771 39,807 369,579 4,147,211 4,147,211 - OVER UNDER BUDGET 3,360,229 39,807 3,320,421 457,211 457,211 - Table #2 -Recommended Fundina Sources Funding Source Year $ Facilities Mana ement - Re lacement HVAC 2010 $ 56,000 Facilities Management -Replacement Building Ext 2010 $ 30,000 Community Programs and Services -General Provisions 2010 $160,000 Community Centres -General Provisions 2011 $ 40,000 Capital Contingency 2010 $172,000 Total $458,000 FINANCIAL IMPLICATIONS: As outlined in the body of the report. In addition, it should be noted the Capital Contingency account will have a balance of $171,000 for the remainder of the year. COMMUNICATIONS: None. ACKNOWLEDGED BY: Pauline Houston, General Manager, Community Services 4- 2