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HomeMy WebLinkAboutCS 19-21Report to Council Report Number: CS 19-21 Date: June 28, 2021 From: Brian Duffield (Acting) Director, Community Services Subject: Request for Additional Funding for Consulting Services -Tillings Operations Yard Remediation (Phase 2) -File: A-1440 Recommendation: 1.That the additional fee proposal and project costs as submitted by Cambium Inc. in the gross amount of $346,235.00 (HST included), and the net amount of $311,795.00 (net HST rebate) for Phase 2 to increase the scope of work to allow for the remediation of the Tillings Operations Yard, in accordance with Purchasing Policy, Item No. 10.03 (c) be accepted; 2.That the total estimated consulting costs including the additional costs of Phase 2 amount referenced in Recommendation 1 in the amount of $482,856.00 (net HST rebate) be approved; 3.That the Director, Finance & Treasurer be authorized to finance the additional fee referenced in Recommendation 1 in the amount of $311,795.00 by a transfer from the Operations Centre Reserve Fund; and, 4.That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. Executive Summary: Cambium Inc. was retained by the City in April 2019 under Report CS 01-19, based on RFP-13-2019, to undertake testing and investigations required to determine the location, type and quantity of soil contamination at the former Public Works yard located at 2570 Tillings Road. Active use of the site ended in July 2019, with all of the existing buildings having been demolished above grade by May 2020. A Phase 2 Environmental Site Assessment (ESA) has since been completed and identified a variety of contaminants throughout the site that are consistent with its prior use. Remediation of the identified contaminants of concern is possible, with the exception of salt which reaches a significant depth and has been consistently found in ground water throughout the site. It will not be possible to fully remediate this condition to meet a class 1 or class 2 soil condition in accordance with Ministry of the Environment, Conservation and Parks standard tables. Further work is also required to confirm the vertical delineation of contaminants found to date. Next steps involve the completion of a supplemental Phase 2 ESA and preparation of a Risk Assessment that will be submitted to the Ministry in order to achieve a site specific classification. Once approved, the site specific classification will enable the City to complete the required site works and obtain the Record of Site Condition (RSC) necessary to prepare the property for sale. Report CS 19-21 June 28, 2021 Subject: Consulting Services for the Remediation and Demolition of the Tillings Road Operations Centre (Phase 2) This report addresses the last phase of consulting work need to achieve Ministry of the Environment, Conservation and Parks approval to perform physical remediation of the site. A separate scope of work will then be tendered and awarded to complete this work. The balance of funds remaining in account 5315.1901.6500 ($2,635,784.00) is intended to be used to address these future costs. Staff recommends the approval of an increase in original project consulting costs of $311,795.00 (net HST rebate) to the amount approved by Council on April 23, 2019 through Report CS 01-19, Resolution #67/19. Financial Implications: 1. Estimated Project Costing Summary Original scope of work (CS 01-19) Funds approved $128,101.00 Original Contingency (CS 01-19) Funds approved 40,000.00 Additional Phase 2 Consulting 296,403.00 Additional Phase 2 Contingency 10,000.00 Total Cost $474,504.00 HST (13%) 61,686.00 Total Gross Project Costs $536,190.00 HST Rebate (11.24%) (53,334.00) Total Net Project Costs $482,856.00 2. Approved Source of Funds – Operations Centre Capital Budget Approved Code Source of Funds Budget Funds Available Funds Required 5315.1802.6230 Operations Centre Reserve Fund $200,000.00 $23,395.00 $0.00 5315.1901.6500 Operations Centre Reserve Fund 3,000,000.00 2,924,184.00 311,795.00 Total Funds $3,200,000.00 $2,947,579.00 $311,795.00 Project Cost under (over) approved funds by $2,635,784.00 For ease of tracking, the additional fee related to work undertaken by Cambium will continue to be tracked under the original approved account 5315.1802.6230. Both accounts 5315.1802 and 5315.1901 are related to the Operations Centre Demolition & Site Remediation Plan project. Funds from 5315.1901 can be directed to funds costs incurred under 5315.1802 account. Report CS 19-21 June 28, 2021 Subject: Consulting Services for the Remediation and Demolition of the Tillings Road Operations Centre (Phase 2) Discussion: RFP-13-2019 was awarded to Cambium Inc. in April 2019 by Report CS 01- 19, and included site investigations and testing required to prepare initial Phase 1 and Phase 2 Environmental Site Assessments. Staff relocated to the newly completed Operations Centre at 1955 Clements Road in the summer of 2019. The existing buildings at the 2570 Tillings Road site were subsequently demolished. Only foundations, slabs on grade and related underground amenities currently remain. All site services have been decommissioned, capped and/or disconnected. A variety of contaminants of concern have been found on the property, of types and in concentrations to be expected with its past use. The most prevalent source of soil contamination is the presence of salt, which is also found in the groundwater. Further work is required, in the form of a Supplemental Phase 2 ESA, to more clearly delineate the depth of each of these sources of contamination, and in order to prepare documents required by the Ministry of the Environment, Conservation and Parks in order to advance the project. Some of the contaminated materials cannot be fully remediated, notably the presence of salt in the groundwater, meaning that it will not be feasible to achieve the Ministry’s standard class 1 or class 2 soil classifications, which are normally required for more sensitive uses such as residential development and schools. Completion of a Risk Screening, in accordance with O.Reg 153/04, will be required to determine which of the following options are viable: Option 1: Risk assessment with no remediation Option 2: Risk assessment with hotspot remediation Option 3: Risk assessment of salt-related impacts and remediation of remaining contaminants of concern The Durham District School Board (DDSB) is exploring use of the site for a future elementary school and is coordinating with the City regarding their needs. The preferred option for risk assessment and related remediation requirements will depend on the DDSB’s expectations, as well as cost considerations for the City. Once an approach is selected, formal submission of a regulatory risk assessment will be provided to the Ministry. This is a lengthy process, wherein the Ministry has a regulated, minimum 16-week period for review and comment, per submission. Multiple submissions are typically required. Regardless of which option is selected, the City will also eventually need to issue a tender for removal and remediation of the remaining underground building components and site amenities (fuel tanks, foundation, slabs on grade, etc.). The extent of any soil remediation will add cost and time to this process. This additional funding request will enable staff, through services provided by Cambium Inc., to expand upon the previously completed Phase 2 ESA in order to determine the best approach based on the options listed above, and eliminate any options which cannot meet regulatory requirements. Once the preferred scope and approach have been determined, Cambium Inc. will prepare and submit the required documents to the Ministry and assist the City in obtaining approval of the risk assessment, which becomes a site-specific classification and target for remediation. Report CS 19-21 June 28, 2021 Subject: Consulting Services for the Remediation and Demolition of the Tillings Road Operations Centre (Phase 2) Upon careful examination of the proposal from Cambium dated March 19, 2021, the Community Services Department recommends approval of the proposed increases in consulting costs for remediation of the former operations centre yard at 2570 Tillings Road, by the gross amount of $346,235.00 (HST included), and the net amount of $311,795.00 (net HST rebate). Prepared By: Approved/Endorsed By: Original Signed By: Vince Plouffe, OAA, RAIC Manager, Facilities Capital Projects Original Signed By: Ray Rodrigues, CPPB Manager, Supply & Services Original Signed By: Brian Duffield (Acting) Director, Community Services Original Signed By: Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer BD:vp Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer