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HomeMy WebLinkAboutOPS 03-23Report to Executive Committee Report Number: OPS 03-23 Date: February 6, 2023 From: Brian Duffield Director, Operations Subject: Pickering Heritage & Community Centre - Additional Archaeological Work - File: A-1440 Recommendation: 1. That Report OPS 03-23 regarding additional archaeological work to be completed for the Pickering Heritage & Community Centre (PHCC) at the Pickering Museum Village be received; 2. That Council approve the hiring of Archaeological Services Inc. for Consulting and Professional Services for the Archaeological Assessment of the PHCC project site in accordance with Purchasing Policy 10.03 (c), as the assignment is above $50,000.00; 3. That the fee proposal submitted by Archaeological Services Inc. for Consulting and Professional Services for the Archaeological Assessment of the PHCC project site in the amount of $166,957.50 (HST Included) be accepted; 4. That the total gross project cost of $364,708.00 (HST included), including the fee amount and other associated costs, and the total net project cost of $328,431.00 (net of HST rebate) be approved; 5. That the Director, Finance & Treasurer be authorized to finance the net costs of $328,431.00 from PHCC Construction capital project as approved in the 2021 Capital Budget as follows: a) The sum of $100,171.00 from the DC – Parks & Recreation Reserve Fund; b) The sum of $8,868.00 from the DC – Library Reserve Fund; c) The sum of $215,451.00 from the Rate Stabilization Reserve; d) The sum of $3,941.00 from the Community Benefit Charge Reserve Fund; and 6. That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. Executive Summary: Archaeological review of existing property to be affected by the construction of PHCC requires due diligence and related approvals. Stage 2 archaeological assessment has been completed to date and filed with the Ministry of Citizenship and OPS 03-23 February 6, 2023 Subject: Pickering Heritage & Community Centre Page 2 Additional Archaeological Work Multiculturalism. A need to proceed to stage 3 archaeological assessment has been identified and completion of this process is essential before construction may proceed in or near the affected portions of the PHCC project site. Approval to award this work to Archaeological Services Inc. through a non-competitive process is recommended to retain archaeological consulting services for continuity of work completed to date, and to ensure that the recommended firm reserves the earliest possible date in 2023 to complete the work. ASI completed the stage 1 and stage 2 archaeological assessment on the City’s property and have been approved by TRCA to complete the portion of work to be completed on project lands that they currently own. The City is obligated to complete the PHCC project by the deadline set by the Government of Canada through the respective grant funding programs applicable to this project. As such, assessments must commence immediately once the ground thaws in order to promptly complete the required field work and minimize any potential impact on the construction schedule of the PHCC project. Any delays could add costs and/or time to the construction schedule by extending site works into the winter of 2023-2024 and jeopardize the Federal Grant funding. In accordance with Purchasing Policy 10.03 (c) where the professional service assignment is expected to be above $50,000.00 and the initiating Director intends to acquire the services without going through a competitive process, Council approval is required to engage a consultant for a professional services assignment. A significant project contingency and allowance has been requested in order to have necessary funding approval in place should stage 4 archaeological assessment be required, which can only be assessed upon completion of the stage 3 archaeological assessment. Even if stage 4 archaeological assessment is required, the mandated buffer zone around the archaeological site would be sufficiently reduced to allow early and essential construction work to proceed. Proposal 22MT-030 submitted by Archaeological Services Inc. (ASI), in the amount of $166,957.50 (HST included) is recommended for approval. The total gross project cost is estimated to be $364,708.00 (HST included) and the total net project cost is estimated at $328,431.00 (net of HST rebate). Financial Implications: 1. Proposal Amount ASI Fee Proposal 22MT-030 $147,750.00 HST (13%) 19,207.50 Gross Proposal Amount $166,957.50 OPS 03-23 February 6, 2023 Subject: Pickering Heritage & Community Centre Page 3 Additional Archaeological Work 2. Estimated Project Cost Summary ASI Fee Proposal 22MT-030 $147,750.00 Contingency & Additional Stage Allowance 175,000.00 Total Project Costs (excluding taxes) $322,750.00 HST (13%) 41,958.00 Total Gross Additional Costs $364,708.00 HST Rebate (11.24%) (36,277.00) Total Net Additional Costs $328,431.00 3. Approved Source of Funds Approved Code Source of Funds Funds Available Funds Required C10220.2011 DC – Parks & Rec $7,993,700.00 $100,171.00 C10220.2011 DC – Library 5,694,400.00 8,868.00 C10220.2011 Federal Grants 4,000,000.00 0.00 C10220.2011 Debt – 20 Year 11,391,900.00 0.00 C10220.2011 Rate Stabilization R 0.00 215,451.00 C10220.2011 CBC Reserve Fund 0.00 3,941.00 Total Funds $29,080,000.00 $328,431.00 Project Cost under (over) approved funds by $28,751,569.00 The construction for the PHCC was approved in the 2021 Capital Budget in the amount of $29.08 million. The work to be done by ASI for stage 3 of the archaeological assessment in the amount of $328,431.00 (net of HST rebate) will draw upon this approved budget. The construction budget will be updated to include additional funding in the 2023 Capital Budget and will encompass the required archaeological assessment. The stage 3 archaeological assessment must commence as soon as possible and be resolved before construction can proceed on any parts of the PHCC project site. Approval is being requested to enable staff to proceed immediately and minimize any risk of impact to the pending construction schedule and related financial impacts. PHCC’s construction schedule is based upon deadlines associated with its grant funding, requiring all work to be completed by March 2026. Delaying the start of the archaeological assessment could impact the feasibility of meeting that deadline. It is possible that completion of stage 3 archaeological assessment may discover artifacts in sufficient quantities or significance that additional assessment is mandated by applicable legislation. Stage 4 archaeological assessment may be required, but could be undertaken in a manner that will allow construction of the PHCC project to commence while the archaeological scope is finalized. OPS 03-23 February 6, 2023 Subject: Pickering Heritage & Community Centre Page 4 Additional Archaeological Work Upon completion and approval of all required archaeological work, any unspent funds will be returned to source. Discussion: The PHCC project site includes most of the open portion of the Pickering Museum Village property on the west side of the East Duffins Creek, commonly referred to as the upper site. A portion of the project site extends farther west into lands currently owned by the TRCA. Sale of these lands to the City is supported by the TRCA’s Greenwood Lands Master Plan and is actively being negotiated. Clearance of archaeologically sensitive areas is required and began in 2018 with due diligence assessment of the TRCA lands to determine whether construction of a facility could extend into the area. This initial work was conducted by TRCA’s own archaeological staff and paid for by the City, including completion of up to stage 2 work. The final report identified that additional work would be required. Archaeological Services Inc. were later retained by the City to complete equivalent work on adjacent City- owned lands, completing stage 1 archaeological assessment in 2020 and stage 2 archaeological assessment in 2021. Work on the PHCC project was subsequently placed on hold while the City reviewed funding needs and capital project priorities, but resumed in June 2022 following announcement of additional grant funding. At this time, there is a need to proceed to a stage 3 work on all affected lands associated with the PHCC project, including those owned both by the City and TRCA. TRCA has agreed that ASI may undertake the required work on their lands as their own internal resources are insufficient to the scale of the project. Archaeological surveys are seasonally sensitive work and backlog had accumulated across the industry over recent years due to COVID-related impacts. Staff immediately reached out to Archaeological Services Inc. (ASI), once information sharing constraints about grant funding awards were lifted, but there was no capacity in the field to proceed with the work in 2022. It is essential to reserve the earliest possible window to undertake field work in 2023 and to streamline that work as efficiently as possible. Proceeding with a consultant already familiar with the site and past reports will help expedite the process and serves the interests of the Corporation. Award of the work to Archaeological Services Inc. is permitted in accordance with 10.03 (c) of the Purchasing Policy, subject to Council approval. Until the stage 3 archaeological assessment is completed, a 50m protective buffer must be maintained around the subject lands. No construction can occur within this buffer, which overlaps the proposed footprint of the PHCC facility. Completion of stage 3 work would eliminate this buffer, or reduce it to 20m if stage 4 archaeological assessment is subsequently required. The reduced buffer would be sufficient to commence construction of the facility while the balance of any stage 4 archaeological assessment continued. The City’s interests will best be served by completing all archaeological work as swiftly as possible to eliminate any impacts on PHCC’s construction schedule. Delays could push major earth works into the winter of 2023-2024, potentially exposing the City to additional heating costs or delay-related claims. These can be mitigated if the archaeological work begins as soon as possible. ASI’s scope of work will be expanded as required to satisfy regulatory requirements, including stage 4 or additional work, but only where required by authorities having jurisdiction. Additional OPS 03-23 February 6, 2023 Subject: Pickering Heritage & Community Centre Page 5 Additional Archaeological Work contingency and allowance has been included in the project to avoid any potential delays that might otherwise result from having to seek separate, additional approvals. The PHCC project will be funded in part by the Canadian Cultural Spaces Fund and Green and Inclusive Community Buildings grant programs. The funding agreements for these grants include cash flow expectations and project completion deadlines. Construction must begin no later than the summer of 2023 in order to meet them. Both grants require project completion by the end of March 2026. In an effort to consult with Indigenous peoples with historical connection to these lands, outreach has and will continue to occur with the Mississaugas of Scugog Island First Nations, Curve Lake First Nation and the City’s Indigenous Relationship Building Circle. Community Services department staff are also exploring options to develop exhibit materials for the completed PHCC to convey the history of local Indigenous peoples, to be supported by any materials that may be recovered over the course of field work. Proposal 22MT-030 as submitted by Archaeological Services Inc.is recommended for approval to complete all necessary archaeological work required to enable the City to proceed with construction of the PHCC project. Attachment: None. 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, MRAIC Sarah Douglas-Murray Division Head, Operations Services Director, Community Services BD:vp Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer