HomeMy WebLinkAboutOPS 17-22 Report to Council
Report Number: OPS 17-22
Date: July 11, 2022
From: Brian Duffield
Director, Operations
Subject: Additional Funds for Pickering Heritage & Community Centre
Pre-Construction Costs
- File: A-1440
Recommendation:
1. That Report OPS 17-22 of the Director, Operations regarding additional costs for pre-
construction work to be completed for the Pickering Heritage & Community Centre
(PHCC) at the Pickering Museum Village be received;
2. That unspent funds provided by Reports CS 19-18 and CS 34-18 for architectural,
landscape and engineering services for the Pickering Heritage & Community Centre at
the Pickering Museum Village be re-allocated for the conversion of existing technical
documents to meet Net-Zero Design criteria in accordance with the City’s Green and
Inclusive Community Buildings (GICB) grant application and other related costs
included in Recommendations 3 to 5 below, and as presented in Table 3;
3. That as per the proposal submitted by Hariri Pontarini Architects dated June 17, 2022,
in the amount of $438,327.00 (HST included), and net cost of $394,727.00 (net of HST
rebate) be approved;
4. That in accordance with Purchasing Policy Item 10.03 (c), proposal V 22024 dated June
17, 2022, as submitted by Vertical Stat-Up Commissioning in the amount of $67,992.00
(HST included), and a net cost of $61,229.00 (net of HST rebate) be approved;
5. That in accordance with Purchasing Policy Item 10.03 (c), proposal P22-007 dated June
17, 2022, as submitted by Independent Project Managers in the amount of $37,340.00
(HST Included), and a net cost of $33,626.00 (net of HST rebate) be approved;
6. That the Director, Finance & Treasurer be authorized to finance the additional net costs
of $576,078.00 from the unspent funds by applying the funding ratio as per 2022
Development Charges Background Study as follows:
a) the sum of $99,765.00 by a transfer from the Rate Stabilization Reserve;
b) the sum of $21,211.00 by a transfer from the DC City Share Reserve;
c) the sum of $241,952.00 by a transfer from the Development Charges Reserve
Fund – Parks & Recreation;
d) the sum of $23,043.00 by a transfer from the Development Charges Reserve
Fund – Library Services;
OPS 17-22 July 11, 2022
Subject: Additional Funds for Pickering Heritage and Community Centre Page 2
Pre-Construction Costs
e) the sum of $190,107.00 from the GICB grant; and,
7. That the appropriate City of Pickering officials be authorized to take the necessary
action to give effect hereto.
Executive Summary: Design of the PHCC began with the approval of Report CS 19-18
on June 18, 2018 through Resolution #455/18, and was originally envisioned as a phased
project. Report CS 34-18, approved on December 10, 2018 through Resolution #08/18,
expanded the project scope to include design of the entire facility for construction as a whole.
The project has since been submitted for building permit and site plan review, and was placed
on hold in mid-2021, when Council approved Report CS 27-21 through Resolution #612/21
endorsing additional funds for the preparation and application for funding to the Green and
Inclusive Community Buildings (GICB) grant program. At the time, a high level review was also
underway to determine the financial viability and prioritization of various major building projects
and the PHCC project was put on hold.
The City’s GICB grant application included provisions to convert existing designs to meet the
Net-Zero Design criteria, as set out by the Canadian Green Building Council (CaGBC). Version
2 of this standard was used as part of the application. A new version has since been released
and projects must be registered by September 2022 to be grandfathered under the older
iteration of the standard. The project must be registered with CaGBC, with direction to proceed
with conversion to Net-Zero Design, to protect the integrity of the City’s grant application.
Repurposing existing funds approved as part of Reports CS 34-18 and CS 27-21 will enable
the project consultant team to revise all drawings and specifications to meet Net-Zero Design
requirements and be ready to tender for construction. The City will register the project with
CaGBC before the version change deadline and obtain certification within the timelines
allowed for as part of this transition. Consulting fees pertaining to contract administration,
previously included in Report CS 34-18, will be deferred and re-introduced as part of a future
report related to award for project construction.
Financial Implications:
1. Approved Funding as per CS 34-18, CS 27-21
CS 34-18 Approved Funds $1,503,779.00
(adjusted award of RFP-6-2018 for phases 1 & 2)
CS 27-21 Approved Funds 126,691.00
(additional work for GICB application)
Total Approved Budget $1,630,470.00
OPS 17-22 July 11, 2022
Subject: Additional Funds for Pickering Heritage and Community Centre Page 3
Pre-Construction Costs
2. Actual and Additional Costs
CS 34-18 Costs Incurred to Date
CS 27-21 Costs Incurred to Date
$992,266.00
60,210.00
Sub-Total Incurred to Date $1,052,476.00
Fund Remaining Available $577,994.00
Additional Costs:
HPA Proposal
Commissioning Agent
Canadian Green Building Council Costs
Contingency
387,900.00
60,170.00
10,000.00
75,000.00
Total Project Costs (excluding taxes)
HST (13%)
Total Gross Additional Costs
$566,114.00
73,595.00
$639,709.00
HST Rebate (11.24%)
Total Net Additional Costs
(63,631.00)
$576,078.00
Under/(Over) Approved Funds $1,916.00
3. Breakdown of Additional Costs and Funding Sources
Canadian
Green
Project Building
HPA Mgmt. (IPM Council
Costs Proposal Proposal) Comm. Costs Cont. Total
Funding
Ratio-2022
DC Study
Project Cost 387,900 33,044 60,170 10,000 75,000 566,114
HST 13% 50,427 4,296 7,822 1,300 9,750 73,595
Total Gross
Costs 438,327 37,340 67,992 11,300 84,750 639,709
HST
Rebate11.24% (43,600) (3,714) (6,763) (1,124) (8,430) (63,631)
Total Net
Project Costs 394,727 33,626 61,229 10,176 76,320 576,078
Funding Sources
DC RF-Parks
& Recreation 165,785 14,123 25,716 4,274 32,054 241,952 42%
DC RF-Library 15,789 1,345 2,449 407 3,053 23,043 4%
Grant 130,260 11,097 20,206 3,358 25,186 190,107 33%
OPS 17-22 July 11, 2022
Subject: Additional Funds for Pickering Heritage and Community Centre Page 4
Pre-Construction Costs
Costs
HPA
Proposal
Project
Mgmt. (IPM
Proposal) Comm.
Canadian
Green
Building
Council
Costs Cont. Total
Funding
Ratio-2022
DC Study
City
Share/Rate
Stabilization 82,893 7,061 12,858 2,137 16,027 120,976 21%
Total 394,727 33,626 61,229 10,176 76,320 576,078 100%
4. Approved Source of Funds
Approved Code Source of Funds Funds Available Funds Required
C10220.2011 R-Rate Stabilization $271,755.00 $239,046.00
C10220.2011 R-DC City’s Share 21,211.00 17,918.00
C10220.2011 RF-DC Parks & Rec 88,012.00 76,748.00
C10220.2011 RF-DC Library 197,016.00 175,113.00
GICB Grant 0.00 190,107.00
Total Funds $577,994.00 $576,078.00
Project Cost under (over) approved funds by $1,916.00
Modifying the existing PHCC design to meet Net-Zero Design targets enhances the original
intent declared in Report CS 19-18, where it was noted that the building would be designed to
be energy efficient and with modern construction materials in order to control future building
operating costs.
Discussion: The GICB grant program requires related construction projects to meet
prescribed sustainable design and energy conservation targets. The City’s application
proposed to convert the existing PHCC design to meet Net-Zero Design targets, as set by the
CaGBC and in accordance with version 2 of the Net-Zero Design requirements. CaGBC
recently released and is gradually transitioning to version 3, which carries different technical
criteria. In order to preserve the integrity of the City’s grant application, as submitted, the
PHCC project must be registered with CaGBC by no later than September 29, 2022, and
certification of the designs must be completed no later than September 29, 2024. Certification
is based on construction-ready drawings and specifications, without requiring actual
construction of the building.
Hariri Pontarini Architects (HPA) had largely completed the design of PHCC when the GICB
grant opportunity arose. The building permit was ready for issue and site plan application was
in the final stages of resolution. Report CS 27-21 requested additional funding to explore how
to convert the existing designs to meet the Net-Zero Design in order to support the City’s grant
submission. This work included a roadmap, but not the actual conversion of technical
documents. In order to minimize financial impact to the City, existing approved funding from
OPS 17-22 July 11, 2022
Subject: Additional Funds for Pickering Heritage and Community Centre Page 5
Pre-Construction Costs
reports CS 34-18 and CS 27-21 are proposed to be re-purposed to cover the costs of
conversion to Net-Zero Design. This approach avoids any immediate increase above and
beyond approved budgets.
Funding approval is also requested for pre-construction project management services, to be
provided in accordance with item 10.03 (c) of the Purchasing Policy, to retain Independent
Project Managers (IPM). IPM provided similar services to the City during the pre-tender design
development of the City’s new Operations Centre, and supplemented existing staff resources
by assisting with scheduling, cost and quality control. By involving them in the project prior to
tender, IPM can assist with technical coordination and help mitigate post-tender contractor
claims. Costs for any project management services required during the construction stage of
the project would be submitted as part of a future report to award the construction contract,
and are not included in this report.
Systems commissioning is a common part of any major building project, and typically focused
around the final stages of construction. It is good practice to also involve the commissioning
agent prior to tender in order to review and refine the quality of the technical drawings and
specification, avoiding as many coordination issues as possible prior to award. PHCC would
be the City’s first Net-Zero project. In addition to the benefits stated above, early review and
oversight of HVAC and other key systems by a commissioning agent will assist staff in
understanding and preparing for the operational needs of new technologies. Approval is
requested to retain Vertical Start-Up Commissioning (VSC), in accordance with item 10.03 (c)
of the Purchasing Policy, to provide these services.
By re-allocating existing approved funds, no additional funding will be required to complete the
work required to convert PHCC’s design to meet the Net-Zero Design standard. The integrity
of the City’s submission to the GICB grant program will also be maintained by registering the
project with CaGBC prior to the sunset deadline for version 2 of this standard. Additional
funding will be required, at the time of construction tender award, to recapture cost associated
with contract administration services to be provided by HPA and IPM, adjusted to reflect the
increased scope and complexity of a Net-Zero building.
Subject to receipt and approval of all submittals required, the proposals submitted by HPA,
IPM and VSC, all dated June 17, 2022, are recommended for approval, to be funded from
existing approved and unspent funds from Reports CS 34-18 and CS 27-21, to proceed with
conversion of PHCC design and construction documents to meet Net-Zero Design
requirements.
Attachments:
None.
OPS 17-22 July 11, 2022
Subject: Additional Funds for Pickering Heritage and Community Centre Page 6
Pre-Construction Costs
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Brian Duffield Stan Karwowski, MBA, CPA, CMA
Director, Operations Director, Finance & Treasurer
Original Signed By: Original Signed By:
Vince Plouffe, OAA, RAIC Sarah Douglas-Murray
Manager, Facilities Capital Projects Director, Community Services
BD:vp
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer