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Home My WebLink AboutCS 27-21Report to Council Report Number: CS 27-21 Date: June 3, 2021 From: Brian Duffield (Acting) Director, Community Services Subject: Request for Additional Funding for Consulting Services -Green and Inclusive Community Buildings Grant Application for Pickering Heritage & Community Centre -File: A-1440 Recommendation: 1.That, in accordance with Purchasing Policy item 10.03 (c), the additional fee proposal submitted by Hariri Pontarini Architects (HPA) in the gross amount of $140,685.00 (HST included), and the net amount of $126,691.00 (net HST rebate) for technical work required to complete the City’s application to the Green and Inclusive Community Buildings (GICB) grant for the Pickering Heritage & Community Centre (PHCC), and associated costs, be accepted; 2.That the total estimated consulting costs including the amount referenced in recommendation 1 above, in the amount of $126,691.00, as presented in Table 2, be approved; 3.That the Director, Finance & Treasurer be authorized to finance the total net consulting costs of $126,691.00 as follows: a)the sum of $34,826.00 by a transfer from the Development Charges Reserve Fund –Parks & Recreation Services; b)the sum of $24,808.00 by a transfer from the Development Charges Reserve Fund – Library Services; c)the sum of $67,057.00 by a transfer from the Rate Stabilization Reserve; and, d)if the GICB grant application is unsuccessful, the source of funds be revised up to 100 per cent funding through by a transfer from the Rate Stabilization Reserve; and, 4.That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. Executive Summary: Council received correspondence Corr. 24-21 from MP Jennifer O’Connell dated April 26, 2021 regarding the Government of Canada’s Green and Inclusive Community Buildings (GICB) Program at the Council Meeting on Tuesday, May 25, 2021. Council furthermore directed staff, through the CAO, to submit an application under the Government of CS 27-21 June 3, 2021 Subject: Request for Additional Funding for Consulting Services GICB Grant Application for PHCC Page 2 Canada’s GICB Program for the construction of the Council approved Pickering Heritage & Community Centre. Applications for the applicable program stream must be submitted by July 6, 2021, including technical requirements for a transition plan to modify the building design to achieve Net Zero Carbon Design requirements as defined by the standards of the Canadian Green Building Council. To be clear, modifications to existing designs are not required at this time. Only a “roadmap” is needed to explain how the grant target goals would be achieved, if the grant was awarded. In the event that the City is successful in its application, addition design work would be required to implement the recommended changes, though these costs would be recoverable through the grant itself and would be subject to a separate Council approval. In order to prepare the required “roadmap” document, the project design team must re-examine the existing building drawings and specifications to determine how to best achieve the requirements of Net Zero Carbon Design. Building science specialty consultant services will be essential to achieving these targets, but results in an additional scope of services beyond that awarded through Reports CS 19-18 and CS 34-18. Therefore, a separate budget of $126,691.00 (net HST rebate) is requested to complete all required work to prepare the technical documents to be submitted as required support to the GICB grant application. The work must commence immediately in order to meet the grant submission deadline and in accordance with Purchasing Policy item 10.03 (c), council approval is required. The GICB program allows for up to 50 per cent of eligible project costs to be funded by the GICB program with a cap at $25 million in eligible costs (or a maximum grant award of $12.5 million). The project consultants require 4-5 weeks to complete their scope of work, which must be included in the grant application. Staff recommend that the total estimated consulting costs of $126,691.00 (net HST rebate) be approved. Financial Implications: 1. Estimated Project Costing Summary Consulting Costs $111,500.00 Contingency 13,000.00 Total Cost $124,500.00 HST (13%) 16,185.00 Total Gross Project Costs $140,685.00 HST Rebate (11.24%) (13,994.00) Total Net Project Costs $126,691.00 CS 27-21 June 3, 2021 Subject: Request for Additional Funding for Consulting Services GICB Grant Application for PHCC Page 3 2. Approved Source of Funds - Community Centres & Library Capital Budgets Table 2 Community Centres Library Source of Funds 5719.2101.6500 5800.2103.6500 Total Budgets Ratio Funds Required Debt – 20 Year $11,391,900.00 $0.00 $11,391,900.00 $0.00 Federal Grants 3,091,800.00 908,200.00 4,000,000.00 0.00 RF DC – Parks & Recreation 7,993,700.00 7,993,700.00 27% 34,826.00 RF DC – Library Facilities 0 5,694,400.00 5,694,400.00 20% 24,808.00 Rate Stabilization Reserve 0 0 0 53% 67,057.00 Total Funds $22,477,400.00 $6,602,600.00 $29,080,000.00 100% $126,691.00 Funding for consulting costs associated with the GICB grant application will be drawn from the project construction budget approved as part of the City’s 2021 Capital Budget. With the use of development charge funding, the City’s Net Cost for the additional amount is 53 per cent or $67,057. If the application is not successful, the entire amount will be funded through a transfer from the Rate Stabilization Reserve. Discussion: The Government of Canada announced the Green and Inclusive Community Buildings (GICB) grant program in April 2021. Council received written correspondence from MP Jennifer O’Connell dated April 26, 2021 the May 25, 2021 Council meeting (as Corr. 24-21), which also directed City staff to submit a GICB application for PHCC. Staff have reviewed all eligible capital projects and conclude that the Pickering Heritage & Community Centre (PHCC) is the best candidate project for such an application. The PHCC project is currently undergoing site plan approval and building permit reviews. The building design is complete and construction drawings are expected to be complete within 4-6 weeks. Subject to finalizing these approvals, the project can be considered to be ‘shovel-ready’. The GICB grant requires submitted projects to achieve Net Zero Carbon Design standards as set out by the Canadian Green Building Council. For this reason, a separate design review must be completed to determine how best to achieve this higher standard, requiring additional consulting services beyond the scope of work that had previously been awarded. Hariri Pontarini Architects, as the consultant team lead, has provided the City with fee proposals outlining the related costs, totaling $126,691.00 (net HST rebate), including a contingency allowance for disbursements and minor related costs. This fee includes all deliverables required to complete the necessary technical review and provide a design transition plan that outlines all of CS 27-21 June 3, 2021 Subject: Request for Additional Funding for Consulting Services GICB Grant Application for PHCC Page 4 the modifications that would need to be made to the current PHCC design in order to achieve Net Zero Carbon design. Additional costs will apply to actually implement these changes, should the grant application be successful. The GICB program will fund up to 50 per cent of a maximum eligible project cost of $25 million. The latest construction cost estimate for the PHCC project was $24.9 million, plus contingency and ancillary costs, last verified in October 2019. Costs are expected to have increased since that time. Alterations required to achieve the criteria of the Net Zero Carbon Design standard are expected to add to the capital costs of the project. Part of the consultant’s exercise will be to estimate the potential increase and recommend the most cost-effective options to achieve the design targets. It is anticipated that the benefits of the grant award would significantly outweigh the costs of implementing these changes to the design. Upon careful examination of the received proposal and relevant documents, the Community Services Department recommends approval of the proposed consulting costs for completion of technical review and preparation of documents required to submit an application to the GICB grant program for the PHCC project, in the gross amount of $140,685.00 (HST included), and the net amount of $126,691.00 (net HST rebate). Attachment: 1. Council Directive Memorandum, Resolution #595/21, dated May 31, 2021 CS 27-21 June 3, 2021 Subject: Request for Additional Funding for Consulting Services GICB Grant Application for PHCC Page 5 Prepared By: Approved/Endorsed By: Vince Plouffe, OAA, RAIC Ray Rodrigues, CPPB Manager, Facilities Capital Projects Manager, Supply & Services Brian Duffield Stan Karwowski, MBA, CPA, CMA (Acting) Director, Community Services Director, Finance & Treasurer Jackie Flowers CEO/Director of Public Libraries BD:vp Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By: Original Signed By: Original Signed By: Original Signed By: Original Signed By: Original Signed By: Legislative Services Division Clerk’s Office Directive Memorandum May 31, 2021 To: Brian Duffield (Acting) Director, Community Services From: Susan Cassel City Clerk Subject: Direction as per Minutes of the Meeting of City Council held on May 25, 2021 Corr. 24-21 Jennifer O’Connell, Member of Parliament, Pickering-Uxbridge Re: Government of Canada's Green and Inclusive Community Buildings (GICB) Program Council Decision Resolution #595/21 A copy of the original correspondence is attached for your reference. Please take any action deemed necessary. Susan Cassel Copy: Chief Administrative Officer 1.That Corr. 24-21, from Jennifer O’Connell, Member of Parliament, Pickering- Uxbridge, dated April 26, 2021, regarding the Government of Canada's Green and Inclusive Community Buildings (GICB) Program, be received; and, 2.That Staff be directed, through the CAO, to submit an application under the Government of Canada’s GICB Program for the construction of the Council approved Pickering Heritage & Community Centre. Attachment #1 to Report CS 27-21