HomeMy WebLinkAboutOPS 31-23Report to Council
Report Number: OPS 31-23
Date: November 27, 2023
From: Brian Duffield
Director, Operations
Subject: Additional Costs for Tillings Yard Remediation
- File: A-1440
Recommendation:
1. That Report OPS 31-23 regarding additional costs for the Tillings Yard Remediation
project be received;
2. That the total net project cost increase from $3,448,186.00 (net of HST) to
$3,845,050.00 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 $396,864.00 (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: Following remediation work at the Tiling’s Yard in late 2022, the
City submitted its application to the Ministry of the Environment, Conservation and Parks
(MECP) in January 2023. A formal response with comments was received on March 3, 2023,
leading to a second submission on May 23, 2023. The latest response from MECP was
received on September 7, 2023 and conversations have been ongoing to attempt to ensure
that the City’s next submission will be final and fully approved.
MECP’s latest comments included requests for additional data requiring more field work and
boreholes to be drilled on site. This will involve, by extension, related lab work, analysis and
revision to existing documents in order to resubmit the Risk Assessment for approval.
Additional applications will subsequently be required to obtain the Record of Site Condition
(RSC), leading towards enabling the City’s sale of the property.
Existing funding approved to date has been expended. Additional funds are requested in order
to undertake the added field work, updating of documents, resubmission and to obtain other
related approvals required to obtain the RSC. In the interests of time, it is requested that
authority be delegated to the Director, Operations and Director, Finance & Treasurer to
approve allocation of these additional funds to existing purchase orders to Cambium Inc. and
Independent Project Managers, at their discretion. Both companies were previously retained
to work on this project through approved Reports CS 01-19, CS 19-21, OPS 16-22 and OPS
10-23.
OPS 31-23 November 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 & OPS 10-23
CS 01-19 & CS 19-21
(Consulting Services for Remediation of Tillings Ops. Ctr.)
OPS 16-22 & OPS 10-23 (Tillings Yard Remediation)
$474,504.00
2,914,044.00
Subtotal $3,388,548.00
HST (13%) 440,511.24
Total Gross Tender Cost $3,829,059.24
2.Estimated Project Costing Summary
CS 01-19, CS 19-21, OPS 16-22 & OPS 10-23 $3,388,548.00
Additional Contingency 390,000.00
Total Project Cost $3,778,548.00
HST (13%) 491,211.00
Total Gross Project Costs $4,269,759.00
HST Rebate (11.24 %) (424,709.00
Total Net Project Cost $3,845,050.00
3.Approved Source of Funds - Community Centres Capital Budget
Approved Code Source of Funds Funds Available Funds Required
C10300.1901 Operations Centre Reserve Fund $3,448,186.00 $3,845,050.00
Project Cost under (over) approved funds by ($396,864.00)
The most recent Council Report (OPS 10-23) had approved an increase the capital project at
an upset limit of $3,448,186.00. It is being requested that additional funds be approved for this
project in the amount of $396,864.00 (net of HST rebate), bringing the total project cost to
$3,845,050.00
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
OPS 31-23 November 27, 2023
Subject: Additional Cost for Tillings Yard Remediation
investigations and testing required to prepare initial Phase 1 and Phase 2 Environmental Site
Assessments.
Remediation work on site was completed in the latter half of 2022, following approval of Report
OPS 16-22, and submission made to the MECP for review of the City’s Risk Assessment in
January 2023. Risk Assessment is required in this case due to the persistence of salt
contamination on the property due to its prior use as the City’s Operations Centre and cannot
be fully remediated due to its extent and presence in the ground water. The City has
maintained a monitoring program for the site for over ten years, confirming that salt levels have
been steadily dropping over time. An approved Risk Assessment will establish site-specific
conditions for the management of the remaining salt beneath a hard cap and enable the City to
apply for and obtain the RSC required to allow for the sale of this land.
A formal response with comments was received from MECP on March 3, 2023, well ahead of
the mandatory 16-week deadline, allowing the City to make a second submission on May 23,
2023. This resubmission included considerably more technical information resulting in a longer
review. The latest response from MECP was received on September 7, 2023 and included
additional data that will required more field work to obtain. Lab analysis will follow, at which
point the additional information will need to be incorporated into the City’s Risk Assessment for
resubmission. Conversations have been ongoing with MECP to attempt to ensure that the
City’s next submission will be final and fully approved, but the added work was not anticipated
when the budget was last updated through Report OPS 10-23 last March. Additional funding
is being requested to allow for the additional field work, to include additional borehole drilling,
and all subsequent effort required finalize a fulsome and final resubmission to MECP. The
requested funds include costs for the subsequent and separate application for the RSC and
related mandatory requirements as set out in applicable law.
Cambium Inc. were awarded the initial scope of work as the City’s environmental specialty
consultant for this project through Report CS 01-19 and will be required to perform the
additional field work and update the documents prepared to date to make the RA
resubmission. Independent Project Managers (IPM) were retained through Report OPS 16-22
to assist with on-site field work and have continued to support the City’s project efforts on an
as-needed basis. The City is currently awaiting feedback from MECP in order to best and most
precisely focus the work required to obtain the additional data requested through their latest
responses. A detailed scope of work was not complete and confirmed as of the time of writing
of this report. It is requested that Council delegate joint authority to the Director, Operations
and Director, Finance & Treasurer to approve increases to existing purchase orders to
Cambium Inc. and IPM, using the additional requested funds, as required to complete the
project. This report has been submitted at the earliest opportunity in order to secure Council’s
approval and avoid any potential or risk of procedural delays towards obtaining the RSC.
OPS 31-23 November 27, 2023
Subject: Additional Cost for Tillings Yard Remediation
Attachment: None.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Vince Plouffe, OAA, MRAIC James Halsall
(Acting) Director, Operations (Acting) Director, Finance & Treasurer
BD:vp
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer