HomeMy WebLinkAboutOPS 10-23Report to Council
Report Number: OPS 10-23
Date: March 27, 2023
From: Brian Duffield
Director, Operations
Subject: Additional Costs for Tillings Yard Remediation
- File: A-1440
Recommendation:
1. That Report OPS 10-23 regarding additional costs for the Tillings Yard Remediation
project be received;
2. That the total net project cost increase from $3,200,000.00 (net of HST) to
$3,448,186.00 net of HST be approved;
3. That Director, Finance & Treasurer be authorized to finance the additional costs
referenced in Recommendation 2 in the amount of $248,186.00 (net of HST) 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: Remediation work at the Tillings Yard, former site of the Pickering
Operations Centre at 2570 Tillings Road, was completed in the Fall of 2022, following the
approval of Report OPS 16-22 (Resolution #954/22). Many of the costs associated with that
work were based on estimated unit rate quantities established during the initial environmental
assessment process. Actual quantities required to complete the work could only be established
as it proceeded. A final tally of costs incurred for remediation has exceeded the approved
budget by a value of $88,893.93 plus HST.
The City has also incurred additional costs required to support its risk assessment submission
to the Ministry of the Environment, Conservation and Parks (MECP), and to support the
Durham District School Board (DDSB) as it develops its designs for a future elementary school
on this site. Costs include geotechnical testing, species at risk assessment, additional
boreholes samples and laboratory fees.
The process is at a critical stage as the City prepares to obtain the Record of Site Condition
required for the land sale to occur. Additional funds are required to obtain a formal land value
appraisal to establish fair market value. The previous project contingency has been fully
expended and additional contingency is requested to address any additional work that may be
required by MECP. Capping and monitoring wells will be required as part of the final scope of
work on this property. The specific methodologies for capping must be developed in
coordination with DDSB’s designs for the site in order to avoid duplication of cost and effort on
behalf of both parties. Financial considerations for these specific items will be negotiated
separately between the City and DDSB as part of the sale of land.
OPS 10-23 March 27, 2023
Subject: Additional Cost for Tillings Yard Remediation
Financial Implications:
1. Approved Funding as per CS 01-19, CS 19-21 & OPS 16-22
CS 01-19 & CS 19-21
(Consulting Services for Remediation of Tillings Ops. Ctr.)
OPS 16-22 (Tillings Yard Remediation)
$474,504.00
2,590,000.00
Subtotal $3,064,504.00
HST (13%) 398,385.52
Total Gross Tender Cost $3,462,889.52
2. Estimated Project Costing Summary
CS 01-19, CS 19-21 & OPS 16-22 $3,064,504.00
Phase 1 Demolition Costs (T-28-2019 and related costs) 80,150.00
Remediation Cost Overage 88,893.00
Land Appraisal 15,000.00
Additional Contingency 140,000.00
Total Project Cost $3,388,548.00
HST (13%) 440,511.00
Total Gross Project Costs $3,829,059.00
HST Rebate (11.24 %) (380,873.00
Total Net Project Cost $3,448,186.00
3. Approved Source of Funds - Community Centres Capital Budget
Approved Code Source of Funds Funds Available Funds Required
C10300.1901 Operations Centre Reserve Fund $3,200,000.00 $3,200,000.00
C10300.1901 Operations Centre Reserve Fund 0.00 248,186.00
Total Funds $3,200,000.00 $3,448,186.00
Project Cost under (over) approved funds by ($248,186.00)
Accounts 5315.1802 and 5315.1901 are related to the Operations Centre Demolition and Site
Remediation Plan project. The accounts have been merged into C10300.1901, with a
combined budget of $3,200,000.00 (net of HST). The available funds listed above represent
the balance remaining after all previously approved commitments.
OPS 10-23 March 27, 2023
Subject: Additional Cost for Tillings Yard Remediation
Discussion: 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. Cambium Inc. were retained as the City’s consultant to facilitate the
environmental approvals and processes required to complete remediation work and obtain the
Record of Site Condition (RSC) required for sale of the lands. Cambium completed site
investigations and testing required to prepare initial Phase 1 and Phase 2 Environmental Site
Assessments.
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 some of the groundwater
throughout the site, and to significant depth below grade. In June 2022, Council approved
Report OPS 16-22, authorizing staff to proceed with the remediation work required to obtain
the RSC. The presence of salt in the groundwater cannot be remediated, 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 uses such as residential development and schools.
Completion of a Risk Assessment submission, in accordance with O.Reg. 153/04, will be
required to obtain the record of site condition and permit managing in place salt-related
contamination and the remediation of the remaining contaminants of concern. This work was
completed in the Fall of 2022, involving localized removal of contaminated soils and ongoing
testing to verify that all material above MECP threshold had been removed. It is typical for this
work to be awarded on a unit rate basis, as was done in this case. Final tally of all related
costs resulted in a cost overrun of $88,893.00 plus HST above the total approved budget,
including all available contingency.
The City’s Risk Assessment submission was formally received by MECP on January 16, 2023.
City staff and supporting consultants are actively communicating with MECP to push for the
required approvals in order to obtain the RSC and other documents required to facilitate the
sale of land to DDSB. These are required before construction of the school can begin.
At this stage, additional funding is required to cover the cost overrun from the remediation
work, obtain a land appraisal and cover related consulting fees, including: updated surveys,
additional excavation and testing that may be requested by MECP, and installation of
monitoring wells, etc. Additional costs will be offset at a later date by proceeds from the sale of
the Tillings property.
OPS 10-23 March 27, 2023
Subject: Additional Cost for Tillings Yard Remediation
Attachment:
None.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Brian Duffield Cathy Bazinet, CPPB, NIGP-CPP
Director, Operations Manager, Procurement
Original Signed By: Original Signed By:
Vince Plouffe, OAA, MRAIC Stan Karwowski, MBA, CPA, CMA
Division Head, Operations Services Director, Finance & Treasurer
BD:vp
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer