HomeMy WebLinkAboutOPS 16-22Report to Council
Report Number: OPS 16-22
Date: June 27, 2022
From: Brian Duffield
Director, Operations
Subject: Tillings Yard Remediation
- File: A-1440
Recommendation:
1. That Council delegate the authority to award a contract, with terms and conditions
satisfactory to the Director, Operations and the Director, Finance & Treasurer; and the cost
not to exceed $2,635,584.00 (net of HST) from a public tender to be issued at the earliest
opportunity to meet compliance with applicable government trade legislation and in
accordance with the City’s Purchasing Policy, and that staff report back to Council;
2. That in accordance with Purchasing Policy Item 10.03 (c), additional consulting costs for
Cambium Inc. be approved on a schedule of rates acceptable to the Director, Operations
and the Director, Finance & Treasurer, with costs to be funded from the same source as
Recommendation 1;
3. That in accordance with Purchasing Policy Item 10.03 (c), Independent Project Managers
be retained on a schedule of rates acceptable to the Director, Operations and the Director,
Finance & Treasurer, with costs to be funded from the same source as Recommendation 1;
4. That the Director, Finance & Treasurer be authorized to finance the additional fee
referenced in Recommendations 1, 2, and 3 in the amount of $2,635,584.00 by a transfer
from the Operations Centre Reserve Fund; and,
5. That the appropriate City of Pickering officials be authorized to take the necessary action to
give effect hereto.
Executive Summary: The Durham District School Board (DDSB) previously identified the
former Public Works’ yard located at 2570 Tillings Road as the site for a future elementary school.
The addition of a school in this location is a key component of the essential infrastructure required
to service the needs of the growing community. DDSB have been working closely with the City on
a remediation plan of the site to a level acceptable for the intended use as a school. Active use of
the site ended in July 2019, and all above grade structures were demolished in May 2020. A
Phase 2 Environmental Site Assessment (ESA) completed, after demolition, identified a variety of
contaminants throughout the site that are consistent with its prior use.
Remediation of the identified contaminants of concern is possible, with the exception of salt which
reaches a significant depth and has been consistently found in ground water throughout the site. It
is not possible to fully remediate this condition to meet a class 1 or class 2 soil condition in
accordance with Ministry of the Environment, Conservation and Parks (MECP) standard tables
Report OPS 16-22 June 27, 2022
Subject: Tillings Yard Remediation
due to the depth and extent of the salt contamination. The DDSB is prepared to support a Risk
Assessment application to MECP for a remediation plan that only excludes the salt contamination
from remediation. Furthermore, DDSB must obtain a Record of Site Condition (RSC) before they
can acquire the site and seek authority to proceed with the school project and their timeline to do
requires an immediate decision to proceed with the site remediation.
As part of the decommissioning and remediation of the former Public Works’ yard, all underground
foundation, services, concrete slabs, etc. must be removed. This work is required to start on site
as early as possible in order to meet the project deadline. The City’s environmental consultant,
Cambium Inc., has produced a localized remediation plan that identifies the location and extent of
contamination to be excavated and removed. The extent of the contamination is to be further
delineated by on-site testing during the remediation. As this can only be verified while work
proceeds, staff recommend completing the remediation work under a schedule of rates, to be
established after this approval in order to more clearly define the contractor’s scope of work and
set acceptable unit rates for cost control.
The City of Pickering is bound by the Canadian Free Trade Agreement (CFTA) and the Canada-
European Union Comprehensive and Economic Trade Agreement (CETA) which mandate the
public tender of projects with anticipated costs over $121,200.00, including prescribed timelines
for the tendering process (Article 19.10 of CETA). The projected value of this project dictates that
the City must comply with CETA requirements. Staff will work with the City’s consulting team to
immediately prepare and tender this work for award at the earliest possible date. Delegated
authority is requested, within the bounds of previously approved budget, in order to ensure that
the project can move forward consistent with the project timeline and should Council be declared
to be in a ‘lame duck’ state before an award can be made.
Financial Implications:
1. Estimated Project Costing Summary
Demolition of all Underground Structures (budget estimate) $500,000.00
Remediation & Related Costs (includes overall project contingency) 1,940,000.00
Cambium Phase 3 Consulting (budget estimate) 100,000.00
IPM (budget estimate) 50,000.00
Total Cost $2,590,000.00
HST (13%) 336,700.00
Total Gross Project Costs $2,926,700.00
HST Rebate (11.24%) (291,116.00)
Total Net Project Costs $2,635,584.00
Report OPS 16-22 June 27, 2022
Subject: Tillings Yard Remediation
2. Approved Source of Funds – Operations Centre Capital Budget
Approved Code Source of Funds Funds Available Funds Required
C10300.1901
Operations Centre Reserve Fund
$2,670,641.00
$2,635,584.00
Total Funds
$2,670,641.00
$2,635,584.00
Project Cost under (over) approved funds by $35,057.00
Accounts 5315.1802 and 5315.1901 are related to the Operations Centre Demolition & Site
Remediation Plan project. The accounts have been merged into C10300.1901, with a combined
budget of $3,200,000.00. The available funds listed above represent the balance remaining after
all previously approved commitments.
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. 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. Some
of the contaminated materials cannot be fully remediated, notably the presence of salt in the
groundwater, 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.
The Durham District School Board (DDSB) continues to work with the City to make this land
suitable as the site for a future elementary school. Implementing the risk assessment and related
remediation requirements that are acceptable to DDSB requires immediate action to start the
related work in order to meet their overall project timeline to open an elementary school by
September 2024. Once a contractor is retained to start the remaining demolition and remediation,
a revised submission to the MECP will be made to continue the risk assessment process. This
can proceed at the same time as work occurs on site.
This funding request will enable staff to accelerate the remediation process through continuous
testing of soils during removal of the subgrade infrastructure. Materials with only salt-related
contamination may be stockpiled on site and re-used as table 1 fill to reduce overall costs.
Independent Project Managers (IPM) was retained by the City to help facilitate the construction of
the new Operations Centre and is familiar with the history and condition of the Tillings Yard site.
Staff proposed to retain IPM to supplement available resources, providing additional direct
Report OPS 16-22 June 27, 2022
Subject: Tillings Yard Remediation
monitoring of this project to help accelerate its completion and implement additional cost
monitoring and controls.
Delegation of Authority to Award Contract to Staff – Recommendations 1, 2 and 3
Recommendations 1, 2, and 3 seek Council approval to delegate the awarding of the contracts
associated with the Tillings Yard remediation to both the Director of Operations and the Director
Finance & Treasurer. By Council approving this recommendation, this will allow the work to start
on site to meet the aggressive project timelines. Using this approach, will enable award and
commencement of the work while maintaining the integrity and legal requirements of the
procurement process. The related consulting additional costs to Cambium Inc. expand an existing
scope of work on this project. IPM have a proven track record for supplementing staff resources
on large or complex projects of this nature and will provide an additional level of oversight on the
contractor to protect the public interest on cost and quality controls.
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, RAIC Stan Karwowski, CPA, CMA, MBA
Manager, Facilities Capital Projects Director, Finance & Treasurer
BD:vp
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer