HomeMy WebLinkAboutENG 24-22Report to Council
Report Number: ENG 24-22
Date: December 5, 2022
From: Richard Holborn
Director, Engineering Services
Subject: Additional Cost for Project Management and Design Services for the Pickering
Innovation Corridor
- Seaton Community
- File: A-1440
Recommendation:
1. That additional project management and design services fees requested by Sabourin
Kimble & Associates Ltd. in the amount of $122,000.00 (plus HST) for the change in
scope of work to undertake the necessary studies and design work associated with the
provision of municipal services within the Pickering Innovation Corridor, be accepted, in
accordance with Purchasing Policy 10.3 (c) as the assignment is above $50,000.00;
2. That the total net project cost $1,307,616.00 be revised to $1,431,763.00 (net of HST
rebate) be approved;
3. That the Director, Finance & Treasurer be authorized to fund the revised net project cost
of $1,431,763.00 from Capital Budget account C10600.1802.01 (formerly
5203.1802.6265) from the Sale of Land, and,
4. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in the report.
Executive Summary: The hiring of Sabourin Kimble & Associates Ltd. (SKA) to provide
project management, undertake studies and complete design work required to provide municipal
services within the Pickering Innovation Corridor was endorsed by Council in May 2018 through
Report CAO 04-18. The scope of work was increased and additional costs related to the
assignment was approved in January 2019 through Report CAO 02-19. During approval of the
2020 Current and Capital Budgets, further additional fees were approved by Council through
Recommendation 25 of Report FIN 02-20.
SKA has recently requested additional fees in the amount of $122,000.00 (plus HST) in order to
cover additional costs incurred to date, and to complete project management, studies and
design services for the Highway 7 at Sideline 24 signalization and intersection improvements.
The additional cost can be attributed to fulfilling requirements of the Ministry of Transportation,
Toronto and Region Conservation Authority, and Department of Fisheries and Oceans for
design approval of the intersection improvements. It can also be attributed to additional time
requirements for cost sharing allocation services related to the municipal services component,
and other aspects of the project such as landscape and environmental services.
ENG 24-22 December 5, 2022
Subject: Additional Cost for Project Management and Design
Services for the Pickering Innovation Corridor
– Seaton Community Page 2
Financial Implications:
1. Estimated Project Costing Summary
Original Proposal Amount (CAO 04-18) $590,000.00
Scope Change #1 (CAO 02-19) 270,000,00
Scope Change # 2 (FIN 02-20) 425,000.00
Subtotal $1,285,000.00
Scope Change #3 (ENG 24-22) 122,000.00
Subtotal – Revised Gross Project Cost $1,407,000.00
HST (13%) 182,910.00
Total Revised Gross Project Cost $1,589,910.00
HST Rebate (11.24%) (158,147.00)
Total Net Project Cost $1,431,763.00
2. Source of Funds
Account Code Source of Funds Budget Required
C10600.1802.01
504000
Sale of Land $2,145,505.00 $1,431,763.00
Total $2,145,505.00 $1,431,763.00
Discussion: The engineering firm of Sabourin Kimble & Associates Ltd. (SKA) was hired in
May, 2018 to undertake the required studies and complete the design work to provide
municipal services to the Pickering Innovation Corridor in the Seaton Community. At the time,
the primary reason for initiating this work was to provide municipal services for the Kubota
Canada Ltd. site, however, the services being designed benefitted other future development
parcels within the Pickering Innovation Corridor.
As time and work on this assignment progressed, the scope of work awarded to SKA
increased, such as the required intersection improvements and signalization of Highway 7 at
Sideline 24. As such, fees for SKA’s services, including project management fees, increased
and additional funds were approved by Council in January 2019 and February 2020.
Originally, SKA proposed to undertake the Highway 7 at Sideline 24 intersection improvements
and signalization design at the same fixed percentage rate as the municipal services design,
Net project cost (over) under approved funds $713,742.00
ENG 24-22 December 5, 2022
Subject: Additional Cost for Project Management and Design
Services for the Pickering Innovation Corridor
– Seaton Community Page 3
based on the estimated cost of construction. Over time, the complexity of the design with
respect to grading, drainage, utility relocations, and lane requirements has increased. As such,
SKA has requested that the fixed fee percentage rate be increased moderately to better reflect
the type of infrastructure project being designed, recognizing that it is much more complex
then municipal servicing for a subdivision.
The estimated cost of construction work for the intersection improvements and signalization of
Highway 7 and Sideline 24 has also increased over the last three years, upon which the design
fee is based.
In an attempt to advance the signalization of the Highway 7 at Sideline 24 intersection, a
temporary signal design was completed and submitted to the Ministry of Transportation for
review and approval. Although the Ministry ultimately did not accept the concept of temporary
signals for operation and safety reasons, the additional design work has resulted in additional
costs.
All costs related to this assignment undertaken by SKA are costs allocated to the benefitting
landowners within the Pickering Innovation Corridor, and are recovered through Third Party
Contributions.
Attachments:
1. Location Map
ENG 24-22 December 5, 2022
Subject: Additional Cost for Project Management and Design
Services for the Pickering Innovation Corridor
–Seaton Community Page 4
Prepared/Approved/Endorsed By:
Richard Holborn
Director, Engineering Services
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
RH:mjh
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer
Original signed by:
Original signed by:
Original signed by: