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HomeMy WebLinkAboutFIN-10-022 - Stimulus Project Update - February 2010REPORT REPORT TO: Councillor Berry Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee DATE OF MEETING: February 8, 2010 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: February 3, 2010 REPORT NO.: FIN-10-022 SUBJECT: STIMULUS PROJECT UPDATE - FEBRUARY 2010 RECOMMENDATION: That the tenders pertaining to Infrastructure Stimulus Fund projects awarded by the Chief Administrative Officer, be acknowledged, as set out in Appendix ‘C’ of Financial Services Department report FIN-10-022; and further, That the Mayor and Clerk be authorized to execute any agreements pertaining to the tenders awarded with respect to Infrastructure Stimulus Fund projects provided said agreements are satisfactory to the City Solicitor. 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. Since the previous report (December 1, 2009) many projects have made progress. Some projects have not advanced due to factors beyond the City’s control as discussed in this report or because of the time of year. All projects are behind schedule to some degree, but project managers have confirmed that each project can still be completed with the permitted time frame. ç ó ï The City has submitted its first claim for all the 9 ISF projects and the CAF King Street reconstruction project for the period ending December 2009. 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 in Appendix “C”. Council has previously delegated authority to the Chief Administrative Officer 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. This authority has been granted to expedite projects which must be completed under significant time constraints imposed by the Federal and Provincial governments. Legal Services staff have indicated that while this resolution provides authority for the CAO to award the tender, it does not provide authority for the Mayor and Clerk to sign the related agreements. Staff have proposed a recommendation in this report to provide authority to the Mayor and Clerk to sign said agreements. Section 3 – Federal/Provincial Program Updates CAF II application: Staff submitted applications for the CAF Fund Intake II on January 18, 2010. The projects applied for the CAF Fund Intake II are as follows: 1. Victoria Park Lake Design Phase 2. Redevelopment of Woodside Park (Synthetic Turf) 3. King Street Master Plan and Civic Square Renovation It is anticipated that applications will be reviewed soon and projects will be announced immediately after the assessment. Section 4 – Other Information RInC Application for Aquatic Facilities: As directed by Committee, the Mayor’s office has been in frequent contact with MP’s and MPP’s with respect to the status of the approval of the Aquatic Facility Upgrade. The City has received verbal confirmation from Co-Chair of Joint Secretariat advising that the first four projects out of five Aquatic facility projects have been approved. Kiwanis Pool has not been approved since the full scope of work cannot be completed within the deadline of March 31, 2011. Written confirmation of the approval of projects is expected within a week, followed by amendment of RInC Contribution Agreement. Work on these projects will commence with the anticipation of the projects to be completed by March 31, 2011. Staff will bring forward a funding recommendation in late February or early March 2010. The following projects were within the scope of the applications: ç ó î Location Scope Amount Complete change house upgrades, deck Replacement, Harry Class Pool Epoxy resurfacing, re-pointing, roof repair, piping $1,650,000 replacement, filtration upgrades Filter system upgrades, complete re-piping, De- Breithaupt Pool $350,000 humidification /Building Control upgrades Wilson/ Kingsdale Changeroom upgrades, installation of splash pad, filtration $500,000 Poolupgrades Changeroom upgrades, installation of splash pad, filtration Chicopee$500,000 upgrades Complete Over haul: Mechanical & Electrical, surface/ Kiwanis Pool $2,000,000 structural replacement Total $5,000,000 OPA Approval of CMF Solar Roof: The OPA has reviewed the City’s application form in detail and has deemed the application to be complete having satisfied all of the eligibility requirements set out in sections 2 and 3 of the FIT Rules. The OPA will now be assessing by order of time-stamp whether connection resources are currently available to connect the City’s project in accordance with section 5 of the FIT Rules. The OPA's target for processing applications in accordance with sections 5.2 and 5.3 of the FIT Rules is 60 days following the date of response (January 7, 2010). However, due to the high volume of applications received, more time will be required to complete this process. The Solar PV contract for the design/construction of this project, which is out for tender, has now been extended with a closing date of February 12, 2010 and has a 120 day award period to allow for OPA’s timing uncertainties. With a contract award in early to mid-June and a 9-month design/construction period, the commercial operation date is likely to be March 31, 2011. The extension of the commercial operation date into 2011 means that new product rules will apply. The Canadian content of the product changes from 50% to 60%. According to information based on comments from the bidders, this should not significantly affect the project budget or reduce the range of product availability. The City has added a performance clause to the current tender through an addendum. It states that if the project is not substantially complete by Feb 11, 2011 and project closed by March 28, 2011, then the City will pay only the 1/3 rd share of the cost incurred to complete the project beyond the ISF deadline and balance of the cost will be incurred by the bidder. The addition of the performance clause transfers the risk of completion to the contractor and ensures that the contractor develops a realistic and aggressive schedule. Staff has been in continuous dialogue with the OPA and has been advised that the contract should be awarded by March end or early April 2010. Sportsworld: Staff has received a verbal confirmation from the project analyst indicating that the Federal government has approved the “Cost Plus” approach (construction management) with Ball ç ó í Construction. The agreement with Ball Construction will be executed upon receipt of written confirmation and construction will then be initiated. FINANCIAL IMPLICATIONS: The total cost of the four approved RInC projects amount to $3 million, the City of Kitchener will be responsible for funding 1/3 of the eligible project costs totalling $1 million. Staff will bring forward a funding recommendation in late February or early March 2010. 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. 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 is 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 a user-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 and/or media events are planned for the completion of each project. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services & City Treasurer ç ó ì ç ó ë ç ó ê February 8, 2010 Utilization of Council-Approved Expedited Purchasing Measures Expedited Purchasing Measure Utilization The Mayor and Clerk are authorized to sign ISF Contribution agreements have been Provincial and Federal agreements as they received and executed after being reviewed by relate to the Infrastructure Stimulus Fund and the City Solicitor. CAF letter of offer has been the Recreational Infrastructure Canada Fund, received and executed by the City Solicitor. subject to the satisfaction of the City Solicitor. RInC agreements have been received and executed after being reviewed by the City Solicitor. The Chief Administrative Officer is designated For Bridgeport Community Centre, expression to award tenders on Infrastructure Stimulus of interest for Consultant was awarded to th Fund projects provided that the costs are AECOM with CAO’s approval on Oct 20 within the projected expenses outlined in the 2009. Cost of the award is $218,925. Total applications and they are reported to Council budget of the project is $2,249,740. There is a by way of the bi-monthly update report. tight schedule for this project and a delay might jeopardize the project. Province confirmed funding for this project after a delay of almost 2 months. For Sewer and Watermain Rehabilitation project, expression of interest E09-100, Consultant Services – Rehabilitation of Infrastructure on Selected Streets Using Trenchless Technology has been awarded to Conestoga-Rovers & Associates, Waterloo th with CAO’s approval on December 14 2009. Cost of the award is $257,600., including a contingency of $22,400. and G.S.T. Consultants involved in the preliminary phases This measure has been effective at expediting be retained and the consultant selection the project timeline. 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) ç ó é APPENDIX "C" STIMULUS PROJECT STATUS UPDATE February 8, 2010 For Consultant projects over $100,000, cost This measure has been effective at expediting information is to be included with the original the following projects: submission, the interview process is to be Storm Water - Infrastructure waived, and the selection will be based on the Rehabilitation original submissions. Bridgeport Community Centre – Architect Expression of Interest For Storm Water Infrastructure Rehabilitation This measure has been effective at expediting projects, involving drainage upgrades only will the project timeline. be delivered by general contractors under existing construction contracts through a standard change order process as per purchasing guidelines. That the Mayor and Clerk be authorized to This measure will expedite the project timeline. execute a 'cost plus' agreement with Ball The City has received a verbal confirmation Construction for the completion of the design from the Federal government on this and construction of Sportsworld Arena approach. 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. ç ó è