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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