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HomeMy WebLinkAboutFIN 11-24Report to Council Report Number: FIN 11-24 Date: June 24, 2024 From: Stan Karwowski Director, Finance & Treasurer Subject: Fire Station 2 and City Hall Satellite Office Renovations - Delegated Approval Authorization - File: A-1440 Recommendation: 1. That Council delegate the authority to award contracts with terms and conditions satisfactory to the Director, Operations and the Director, Finance & Treasurer in compliance with the City’s Purchasing Policy with the total value of the contracts not to exceed $732,500.00 (Net of HST) for renovations to Fire Station 2, which was approved in prior year’s Capital Budgets and the funding is presented below: A. Facilities Reserve ($630,000.00), approved as part of project C10700.1809; B. Property Taxes ($55,000.00), approved as part of project C10700.1809; and C. Rate Stabilization Reserve ($47,500.00), approved as project C10700.2213; 2. That Council delegate the authority to award contracts with terms and conditions satisfactory to the Director, Operations and the Director, Finance & Treasurer in compliance with the City’s Purchasing Policy with the total value of the contracts not to exceed $800,000.00 (Net of HST) for renovations for the leased space at 2460 Brock Road, which was approved in the 2023 Capital Budget (project C10240.2307) to be funded from the Casino Reserve; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in the report. Executive Summary: The purpose of this report is to enable the timely award of construction contracts for various renovations to Fire Station 2, located at 553 Kingston Road, and for leasehold improvements to the satellite office space leased at 2460 Brock Road in accordance with Report CS 13-24. Renovations at Fire Station 2 include the creation of additional and accessible washrooms, upgrades to the existing kitchen, living quarters and dormitories; conversion of existing building lighting to LED; and improvements for safe roof access. Multiple separate, but related, building projects are intended to be combined into a single scope of work for greater efficiency, including better cost control and avoiding repeated separate disruptions to an emergency service facility. Fire Station 2 is intended remain fully operational during construction. FIN 11-24 June 24, 2024 Subject: Fire Station 2 and City Hall Satellite Office Renovations Page 2 In May, Council also approved the lease of office space at 2460 Brock Road through Report CS 13-24. The lease includes provision of a finishing period to prepare the space and make it suitable to meet the City’s needs. Design work necessary to obtain the required permits is already underway. Delegated authority is requested in order to proceed with related construction in a timely manner, avoiding any potential delay that might extend completion of this work into the paying period of the lease. Otherwise, the City might be paying for space that is not yet ready for use. In both cases, delegated authority is being requested to ensure that the work can proceed in a timely and efficient manner to avoid operational challenges and costs. In the case of Fire Station 2, these renovations were originally intended to proceed in 2020, but were repeatedly delayed due to pandemic-related concerns and to avoid health risks associated with the presence of third party personnel amongst Fire Services staff in an emergency facility. Leasehold improvements at 2460 Brock Road, are expected to be ready for procurement of construction by the end of July, and could be delayed by 6-8 weeks if award approvals were to be delayed until the September 2024 meeting of Council. Approvals also remain subject to related net HST rebate costs for each project remaining within the available budgets. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of Advance Innovation & Responsible Planning to Support a Connected, Well-Serviced Community. Financial Implications: The City’s Purchasing Policy, under Section 7.0, does permit the awarding of contracts during summer recess by the CAO with an information report being presented to Council for their information in the fall. However, due to the dollar amount of the two projects and the importance of these two projects, senior staff believed it was important for Council to be aware of the planned work during the summer break. These two projects are mainly funded by reserves and therefore, the City is not using its limited debt capacity for these two projects. Discussion: The purpose of this report is to obtain delegated authority to award a construction contract for various renovations to Fire Station 2, located at 553 Kingston Road, and leasehold improvements at newly leased office space, located at 2460 Brock Road, during the summer recess of Council. The scope of work at Fire Station 2 includes creation of additional and accessible washrooms, upgrades to the existing kitchen and sleeping quarters, conversion of existing building lighting to LED, and improvements for safe roof access. Multiple separate, but related, building projects are to be combined into a single scope of work for greater efficiency, including better cost control and avoiding multiple disruptions to an emergency service facility. Fire Station 2 is intended to remain operational during construction. The earlier this work can begin, the less risk there is that the project could be impacted by seasonal impacts of the fall or any early onset of winter. FIN 11-24 June 24, 2024 Subject: Fire Station 2 and City Hall Satellite Office Renovations Page 3 Fire Station 2 was originally built in 1977. Fire Services staff, at the time, were all male and accessibility requirements did not yet exist in the building code. As gender diversity increases in the department and front line suppression staff, retrofit of older stations is required. The proposed renovations include refinishing the existed washroom, and creation of a new, separate, universal washroom on the ground floor. Creation of an additional, separate washroom in the basement was separately awarded through quotation Q2024-7 in advance, in order to ensure that interior washrooms would remain available throughout the construction period. Inclement weather and the 24-hour nature of emergency services made temporary outdoor washroom facilities impractical. The basement washroom is currently under construction and will be completed prior to commencing the rest of the proposed renovations. Existing interior and exterior lighting is to be converted to LED for better performance and energy efficiency. Several exterior windows are also at end of life and will be replaced. Retrofitting the existing kitchen and sleeping quarters will also be included in the project scope to address the age and condition of both spaces. The upper flat roof over the apparatus bay currently requires access through a small window opening at the top of the hose tower, making it difficult for maintenance staff to reach and safely access the roof. A portable ladder is required to separately reach the lower flat roof. Access to both roofs is complicated by the mansard style roof and parapets on the building, making ladder use difficult and potentially hazardous. This work will provide a permanent landing and door at the top of the hose tower, and install a connecting stairs to allow better and safer access to both roofs for future maintenance and inspections. All of these projects were originally to be tendered as a combined scope in 2020, but was repeatedly deferred with the onset of COVID-19 in order to help protect Fire Services staff from unnecessary risk of exposure. Now that the related health risks have been reduced, all of the previously deferred work must be completed. Delegated authority is being requested in order to proceed with construction as soon as possible, minimizing operational impacts that might result from delaying award until the next scheduled Council meeting on September 23, 2024. The renovations and would be far less disruptive if undertaken during the summer and early fall. The City’s recently approved lease of unfinished office space at 2460 Brock Road requires various leasehold improvements in order to make it ready for use. Lease terms include a rent- free period for this work to be completed. Design is already underway and procurement for construction is expected to proceed in late July. It is in the City’s interests to complete this work as quickly as possible to avoid extending the renovations into the rental period. Delegating authority to award will mitigate risk associated with approval delay, thereby protecting the City’s financial interests. Attachment: None. FIN 11-24 June 24, 2024 Subject: Fire Station 2 and City Hall Satellite Office Renovations Page 4 Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Vince Plouffe, OAA, MRAIC Stan Karwowski, MBA, CPA, CMA (Acting) Director, Operations Director, Finance & Treasurer BD:vp Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer