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Home My WebLink AboutCS 35-18DICKERING cdy,/ Report to Council Report Number: CS 35-18 Date: December 10, 2018 From: Marisa Carpino Director, Community Services Subject: Additional Costs for Concrete Slab and Prefabricated Storage Shed - Pickering Museum Village Upper Site - File: A-1440 Recommendation: 1. That additional costs in the amount of $100,000.00 (net of HST rebate) over the original budgeted amount of $250,000.00 for project 5744.1804.6500 to construct a new Upper Site Storage Shed at the Pickering Museum Village resulting in a revised budget amount of $350,000.00 (net HST rebate) be approved; 2. That the Director, Finance & Treasurer be authorized to fund the additional net project cost of $100,000.00 from property taxes; 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The Pickering Museum Village required construction of a new, prefabricated metal storage shed on a concrete slab on grade to temporarily house artifacts from the Conservation Building during its reconstruction on the lower Museum site. Request for Quotation Q-12-2018 for the prefabricated metal shed resulted in a low bid of $203,414.70 (HST included) from Prestige Building 2016 Ltd. The scope of required work was revised and reduced costs to $172,895.65 (HST included). A separate quotation was issued for provision of the required slab on grade. Q-23-2018 resulted in a low bid of $124,300.00 (HST included). Combined costs totaled $267,634.00 (net of HST rebate) and fell within the limits of the Financial Control Policy for required approvals. Bids for the prefabricated shed were received just as news broke of United States tariffs on steel, which could not be projected when the original budget was submitted. Excavation for the slab on grade also encountered worse soil conditions than had been identified by preliminary testing and required excavation of an additional 3 foot depth across the entire 6,000 square foot footprint of the shed, including subsequent backfill with suitable materials. Additional engineering and installation costs were also incurred during erection of the shed to meet increased snow load demands. Delaying the work would have impacted the start date of the Conservation Building Reconstruction project, endangering the project schedule, which is restricted by conditions and completion deadlines associated with a $450,000.00 federal grant. Doing so would also have exposed the City to delay claims by the general contractor for that project and risked incurring winter control Report CS 35-18 Subject: Additional Funds for Upper Site Storage Shed at the Pickering Museum Village December 10, 2018 costs due to a late start. The extent of additional costs were also not known until after Council had recessed for the 2018 Municipal Election. The new shed plant is now substantially complete and housing artifacts from the Conservation Building, which is currently under renovation. Additional funds in the amount of $100,000.00 (net of HST rebate) are required to cover extra costs encountered during the project. Financial Implications: 1. Quotation Amounts Q-12-2018 (Prefab Metal Shed) Q-23-2018 (Slab on Grade) HST (13%) Total Gross Project Cost $153,005.00 • 110,000.00 $263,005.00 34,190.65 $297,195.65 2. Estimated Project Costing Summary Q-12-2018 (Prefab Metal Shed) Q-23-2018 (Slab on Grade) Additional Excavation and Fill Additional Shed Installation Costs Miscellaneous Minor Costs Total Cost HST (1.3%) Total Gross Project Costs HST Rebate (11.24%) Total Net Project Costs $153,005.00 110,000.00 32,511.80 45,028.20 3,402.00 $343,947.00 44,713.00 $388,660.00 (38,660.00) $350,000.00 3. Approved Source of Funds 2018 Capital Budget — Rec. Complex — Arenas Account Code 5744.1804.6500 Source of Funds Budget Facilities Reserve $250,000.00 Property Taxes Total Funds $250,000.00 Required $250,000.00 100,000.00 $350,000.00 Project Cost under (over) approved funds by ($100,000.00) Report CS 35-18 December 10, 2018 Subject: Additional Funds for Upper Site Storage Shed at the Pickering Museum Village This project has an over -expenditure that exceeds 10% of the approved amount. The over- expenditure is partially the result of the prefabricated metal shed cost being higher than originally anticipated due to the implementation of tariffs on steel by the United States. The additional cost pressure is being funded from property taxes as confirmed by the Treasurer. In accordance with Section 11.04 of the City's Financial Control Policy, over expenditure exceeding ten percent of the approved capital expenditures shall require the approval of the Treasurer, the Chief Administrative Officer, and the Council. Council approval is being sought at this time for the additional funds required. Discussion: Storage space at the Pickering Museum Village is insufficient to house all of the artifacts in its collection and most of the available storage space does not meet minimum collection standards. This condition generated the need for reconstruction of the existing steam barn to create the new Conservation Building. The contents of the existing barn, including many of the Museum collection's larger pieces, such as agricultural equipment and machinery, had to be relocated elsewhere before those renovations could proceed. A total storage area of 6,000 square feet was needed to house all of the artifacts to be displaced. Staff investigations, supported by budgetary quotes, determined that it could cost the City over $200,000.00 to temporarily relocate the affected items to temporary off-site storage. Constructing of a new on-site storage structure instead would meet short term storage needs and also provide long term storage for future needs. The project was split into two scopes for procurement in order to try and save time and reduce costs. Costs for the prefabricated metal shed were higher than originally anticipated due to the implementation of tariffs on steel by the United States.. Staff were able to negotiate scope reductions with the low bidder for Q-12-2018 to find over $50,000.00 in savings from the originally submitted bid. Artifact transportation costs totaling $59,704.59 (HST included) were funded by the Pickering Museum Village Foundation to help offset pressures on the project budget. Despite preliminary testing, poor soils with high organic content were encountered during excavation for the slab on grade and required excavation to an additional 36" depth across the entire shed footprint. New fill material had to be provided to replace what was removed. Additional structural and detailing issues were encountered during erection of the superstructure, including addition roof reinforcement required to resist higher snow loads applicable in the northern areas of Pickering. It was necessary to proceed with the work immediately. Delaying completion of the shed would impact reconstruction of the Conservation Building, including risks delay claims and added costs for winter control. The Conservation Building project is also partially funded by a $450,000.00 grant from the Canadian Cultural Spaces Fund, which includes restrictive deadlines for expending funding. The full cost of the additional project costs were also not known until Council had recessed for the 2018 Municipal Election. Report CS 35-18 December 10, 2018 Subject: Additional Funds for Upper Site Storage Shed at the Pickering Museum Village The Community Services Department recommends that the amount of $100,000.00 (net of HST rebate) be added to 5744.1804.6500 for construction of an Upper Site Storage Shed at the Pickering Museum Village resulting in a revised budget amount of $350,000.00 (net HST rebate) be approved. Attachments: 1. Three photographs of storage shed Prepared, By: Approved/Endorsed By: Vince Plouffe, OAA, RAIC Marisa Carpino, A Manager, Facilities Capital Projects Director, Community Services Brian Du Division Head, Operations Ray 'odrgues Manager, Supply & Services MC:vp - Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Nal) 3t), Zolg ATTACHMENT # 1 TO REPORT it t -S --45- ti)) i 1