HomeMy WebLinkAboutDTS-10-034 - King St reconstruction project updateJ
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Financial Services
REPORT T0: Councillor C. Weylie, Chair, and Members of
the Development and Technical Services Committee
DATE OF MEETING: February 8, 2010
SUBMITTED BY: Grant Murphy, Director Engineering Services
PREPARED BY: Eric Saunderson, Project Manager, Engineering Construction
Jim Oakley, Manager, Engineering Construction
WARD(S) INVOLVED: Ward 1 and 6
DATE OF REPORT: January 28, 2010
REPORT NO.: DTS-10-034
SUBJECT: RECONSTRUCTING KING STREET -INFORMATION
REPORT
RECOMMENDATION:
For information.
BACKGROUND:
"Reconstructing King Street" is an innovative streetscape project aimed at stimulating an
economic regeneration in downtown Kitchener. The streetscape enhancements target many of
the root causes that have prevented economic revitalization -improved aesthetics, improved
lighting and a more livable urban environment. It is anticipated that these enhancements will
help to stimulate increased commercial activity, increased office employment and the
redevelopment of large vacant parcels, while helping local businesses attract and retain highly
qualified employees.
On December 10, 2007, a 60% design package and business case (Report No. DTS 07-188) for
the reconstruction of King Street and Speakers Corner was presented to the Development and
Technical Services (DTS) Committee for its consideration. At that time, DTS Committee
endorsed the 60% design which was later ratified by Council of the whole on February 4, 2008,
as part of the City's broader capital budget process.
Towards the end of the tender preparation process, it became evident that the project budget
would be exceeded by a significant margin, due to the use specialized materials, an ambitious
construction schedule and the uncertainty of unique design items. In an attempt to gain a better
understanding of the cost projections staff completed a detailed design cost estimate prior to
releasing the tender packages. On April 7, 2008, the findings of this review were presented to
Council of a whole (Report No. DTS 08-052) where, a recommendation was brought forward
that requested "staff be directed to pause the timing of construction on the King Street
streetscape in order to complete a value engineering assessment."
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The value engineering assessment on the project design concluded; the validation of the current
cost estimate by a certified quantity surveyor; and, the development of options that would look
at adjustments to the design and the quality of materials being used as a way of lowering the
overall project cost before proceeding with construction. In the end, the value engineering
assessment provided a greater degree of confidence in the anticipated costs of the project while
finding ways to reduce the overall project cost to coincide with the budgeted amount, previously
approved by Council.
Following the value engineering assessment, staff reconsidered the streetscape design and
developed design options to be included in the contract documents / drawings. A revised tender
package was issued during the last quarter of 2008. Tenders were issued to six (6) prequalified
general contractors, and upon closing on Tuesday November 25th, 2008, four (4) tenders had
been received. Steed and Evans Limited (S&E) submitted the lowest bid at $9,105,466.98,
although subsequent to tender closing, the scope of the project was adjusted and a revised
tender value was recommended to Council on December 8, 2008 (Report No. FIN 08-154).
In 2009, the first phase of the construction was completed on King Street (Young / Gaukel
Streets to Frederick I Benton Streets) and Speakers Corner between April and September 2009.
Through additional funding provided by federal government in the summer of 2009, the scope of
project was increased and construction has continued around City Hall on Young, College and
Duke Streets. This work has recently subsided due to the weather and is scheduled to resume
in late March of 2010.
REPORT:
The intent of this report is to provide a summary on the status of construction completed to date
on King Street, Speakers Corner and the streetscape around City Hall. In addition, this report
will provide some insight on the staging of work planned for 2010 and the next steps to be
completed on this project.
Staaina of Work and Project Schedule
On January 21, 2010, City staff received a request from the contractor, S&E, to consider a
proposal on the project schedule and staging of work planned for construction on King Street in
2010. As noted in the tender documents (T08-015), the recommended project schedule
complies with the anticipated start date of April 5, 2010, and completion date of mid-late
September (and/or 110 working days total).
And similar to the staging of work methodology completed in 2009, S&E have recommended
that the sequence of construction be completed in the same manner and approach. This
approach includes the work to be completed on a block by block basis, both sides of the street
at a time, with the focus on the curbs, parking, landscape area first, and second, the section of
sidewalk along the building faces. The staging plan for this approach includes;
Stage 1 a: Young Street to College Street (late March /early April to early June)
Stage 1 b: College Street to Water Street (May to July 9, *road reopened for "Cruising on King")
Stage 2: Water Street to Francis Street (July to September, *road reopened for "Oktoberfest")
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Upon initial review of the proposal, City staff and the consultant, IBI Group, have endorsed the
overall intent proposed by S&E, with the understanding that S&E prepare a detailed work plan
for technical review and dialogue with the core project team. In general, staff have responded
positively to the block approach and merger of stages suggested between Young and Water
Streets; as there are efficiencies in overlapping these blocks, in terms of sequencing of work
and progression of project operations. For example, underground utility work will be completed
in the first block or stage (1 a} and upon completion, proceed with the second stage (1 b) without
delaying the project schedule. This will provide S&E with ability to complete the streetscape
work without subcontractor disruption.
Similar to planning process 2008-09, City staff and the IBI Group will continue to work with the
downtown BIA in 2010 on finalizing the details of the project schedule and staging or work
proposal. As part of this preparation, regular scheduled meetings have resumed with the BIA to
review the details of this proposal and provide further insight from the local businesses
community. These discussions worked well in 2009 as this dialogue helped mitigate the
inconvenience of construction by increasing communication, reducing access disruptions and
supporting special events throughout the course of construction. As such, City staff and the
downtown BIA have emphasized the importance of meeting key milestones for special events
planned in 2010.
Lessons Learned Survey /Risk Registry
The Engineering Services Division has adopted a lessons learned process that will be
implemented at the end of a project's life-cycle. Due to the sensitive nature of King Street
Reconstruction project, amid-project lessons learned approach has been completed. As part of
a continuous improvement process, documenting lessons learned will help the project team to
discover the root causes of problems that occurred, in hopes to; avoid similar problems in later
stages of the project, improving implementation of new projects, and preventing or minimizing
risks for future projects.
As part of this process, a survey was posted on the City's website between January 29 and
February 5, 2010, where, a preselected list of project participants l stakeholders were invited to
vote and comment on a series of questions centred around the streetscape work completed in
2009. The surveyed focused on several key areas of the project, ranging from general questions
about the design /scope of work to specific questions about project management and the
performance of City staff, the contractor and consultant teams. The underlying objective of this
survey is to build on the knowledge base gained from each group and apply this experience to
further enhance engineering processes and procedures.
The feedback from this process will be documented so that the knowledge can be transferred to
subsequent phases of the current or future projects. Some early examples of areas for
improvement include:
(1) Overall City staff were quite pleased with the final product, although, it is believed that
certain aspects the contractor's workmanship may have affected due to pressuring timelines
and meeting key milestones eg. quality of paving stone installations and the reopening of
the block to vehicular traffic. As a result, some deficiencies have been identified and will
need to be rectified prior to final acceptance.
Lesson Learned: The project team should spend special attention to deficient items
identified in 2009 and adjust project schedules accordingly to provide sufficient time to meet
City expectations. In other words, create a balance between the triple constraint model,
"time, cost and qualitylscope", with added emphasis placed on quality/scope; and,
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(2) It was observed that overall cost control was challenging to manage and forecast at various
stages of construction, due to the method in which the cost estimates were prepared in the
planning phase, prior to the commencement of construction. eg. many contract items are
carried over the course of a project where, at various stages of work, are partially completed
and require additional effort to validate.
Lesson Learned: Cost estimates for construction should be structured to coincide with the
anticipated staging of work proposed in the contract documents, thus, a `cost baseline' can
be established and used as a point of reference to identify over /under estimated
expenditures.
The results of this survey are still being compiled and will be incorporated into the 2010 risk
registry for routine monitoring and action, as necessary. Enclosed is a summary of the risk
registry upon initiation in November 2008 and as last recorded in August 2009;
Original Risk Assesment (November 3, 2008):
Risk Rating Low 1-5 Medium 6-9 Hi h 11-15 Total
(Impact x likelihood) 9 10 10 29
Last recorded Risk Assesment IAugust 21, 2009):
Risk Rating Low 1-5 Medium 6-9 Hi h 11-15 Total
Im act x likelihood 8 6 9 23
Note:
(1)11 new risks were added since November2008totaling 40,
(2)17 risks were closed during the completion of phase 1, and,
(3) Risk Registry meetings to resume March 3, 2010.
Project Budget
In December 2007, a 60% design package and business case for the reconstruction of King
Street was presented to the Development and Technical Services (DTS) Committee for its
consideration. At that time, DTS Committee endorsed the 60% design and ear-marked $5.68M
in capital funding for the reconstruction of King Street and Speaker's Corner. Later on February
4, 2008 the funding for the project was ratified by Council of the whole as part of the City's
broader capital budget process.
During the same period, a proposal was submitted to the Province of Ontario, as part of the
Municipal Infrastructure Investment Initiative (MITI) program where, the City received
confirmation on March 28, 2008 that King Street had been awarded a $3.2M grant. Based on
this announcement, the contract documents were adjusted accordingly to reflect the increase in
capital funding and the tender was released to apre-qualified list of general contractors to bid
on the project.
On August 27, 2009, after contract award and during construction, the City successfully secured
a second grant from the Federal Economic Development Agency (FedDev). The total amount
eligible under this program is $1.23M, and upon receiving confirmation, the scope of work was
increased on King Street and the limits /duration of construction were extended to include the
streetscape around City Hall which, must be completed by March 31, 2010. To date, the scope
of work associated with this funding is approximately 80-85% complete and is anticipated to be
finished on schedule.
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On January 11, 2010, Finance and Corporate Services Committee (Report No. FIN-10-005),
endorsed a recommendation from staff to submit an application for federal funding under the
Community Adjustment Fund, intake 2 (CAF2). An application was submitted for federal funding
consideration, where, King Street and City Hall l Civic Square were listed as one of the three top
priorities. The total amount of this application is $0.75M and if successful, will be allocated for
items that include, but are not limited to: concrete refinishing at Civic Square, paving stone
crosswalks on King Street (Phase 1 &2), concrete roadways to define entrance features near
Frederick and Francis Streets, concrete curbs /parking areas on Young and College Streets,
and miscellaneous items, such as, street furniture, decorations and special event infrastructure.
FINANCIAL IMPLICATIONS:
2009 Financial Summary (as of December 31, 20092
Ex enses
King Street & Speakers Corner $3,972,533
Design, Engineering & Consulting $ 986,466
Public Art at Speakers Corner $ 79,669
Urban Vitality (the Cube) $ 115,000
LightinglTraffic Pole Procurement $ 329,256
Young & College Streets (CAF) $ 84,662
Note:
Total = $5,567,586
Total = $8,480,000
Balance (Surplus) _ $2,912,414
1. Street light work completed under the Infrastructure Stimulus Fund (ISF) City Hall Lighting project is not
shown above and will be reconciled at a later date. Presently, approximately $83,000 has been allocated
for lighting procurement and $205,000 for street light installation on Young, College and Duke Streets;
and,
2. The total contract value for construction of phase 1, King Street (Young / Gaukel Streets to Frederick 1
Benton Streets) & Speakers Corner is $4,039,821.80, of which, approximately $67,000 or 1.7% is
remaining in the 2009 purchasing order and will be transferred to the project contingency for 2010-11
construction.
2011 Projected Financial Summary (upon completion):
Expenses
King Street & Speakers Corner
Design, Engineering & Consulting
Public Art at Speakers Corner
Urban Vitality (the Cube)
Lighting/Traffic Pole Procurement
Young & College Streets (CAF)
Source of Funding
$7,237,880 Contribution from EDIF $3,830,000
$1,497,330 DTS Street Improvements $1,500,000
$ 100, 000 DTS U rban Design $ 150, 000
$ 130,000 CSD Downtown Parkettes $ 350,000
$ 679,130 Provincial Grant (MIII) $3,200,000
$1, 230, 200 Fed Dev G ra nt (CAF) $1, 230, 200
Tree Canada Grant $ 13,200
Cost sharing (Utilities) $ 628,140
Note:
Tota I = $10, 874, 540
Total = $10,901,540
The City is pending results on a grant application submitted to the Federal Economic Development
Agency (FedDev) under the Community Adjustment Fund, intake 2 (CAF2) program. If successful, a
$750,000 grant would be allocated to increase the scope of streetscape work planned for King Street and
City Hall in 2010-2011.
Source of Funding
Contribution from EDIF $3,830,000
DTS Street Improvements $1,000,000
DTS Urban Design $ 100,000
CSD Downtown Parkettes $ 350,000
Provincial Grant (MIII) $3,200,000
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COMMUNICATIONS:
Lessons Learned Survey:
As mentioned above in the contents of the report, a survey was posted on the project website
for King Street under a dedicated internet address where, a preselected list of participants were
invited to vote and comment on a series of questions centred around the streetscape work
completed in 2009. Participants included representatives from a number of City divisions such
as; Engineering Services, Economic Development, Operations, Special Events, Arts & Culture,
Facilities Management and Communications. In addition, external invitations were extended to a
number of agencies outside of the City, these groups included; Consultant l Contractor teams
directly working on the project, utility groups (Bell, Atria, Telus, Rogers and the Region of
UUaterloo) with an invested interest in the final product, and further, the downtown business
association (Downtown BIA), where, the businesses impacted by construction have had an
opportunity to offer feedback and comment. The results of this survey are currently be assessed
by project staff, and once completed, will be compiled and added to the 2010 risk registry for
routine monitoring and action, as necessary.
Communication Plan:
On January 5, 2009, a detailed communication plan for King Street reconstruction was
presented to DTS Committee (Report No. CAO-08-042) for information purposes. The contents
of this report outlined the City's target audience(s), key communication objectives and the tools I
techniques in order to achieve these goals. These techniques included, but were not limited to,
weekly project meetings with key project staff, construction information briefs, business
information brochures, display boards, project signage, radio / TV /newspaper ads, downtown
ambassadors, Your Kitchener articles and media releases at major milestones throughout the
project. As outlined in the report, the total budget for the communications on King Street was
$23,000 and to date, approximately 70% of the budget has been expended.
Business Attraction:
In addition to the tools /techniques listed above, staff are working with the BIA on the second
phase of the communication plan -Business Attraction. The City and BIA are working with MJB
Consulting to develop an on-going business attraction strategy. The strategy will be aimed at
filling existing commercial vacancies in the downtown, with King Street being a particular focus.
The details of this strategy are work in progress, but it is expected that business attraction will
commence as early as this summer, where, staff will continue to work closely with the BIA and
explore additional opportunities to communicate furtherwith the public.
ACKNOWLEDGED BY: Jeff Uvlllmer, Interim General Manager of Development and
Technical Services
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