Friday, March 14, :00 a.m. Council Chamber

Transcription

1 Memorandum Corporate Services Department City Clerk Services Date: March 7, 2008 File: A-2110 To: From: Re: Mayor Gray and Members of City Council Sandra Kranc City Clerk Notice of Special Council Meeting This is to provide notice of a special meeting of City Council for: Friday, March 14, :00 a.m. Council Chamber The purpose of the special meeting is to consider Report CM from the City Manager concerning the City Hall Revitalization Project. Original Signed By: Sandra Kranc City Clerk Distribution Members of Council R. Duignan, City Manager D. Potts, City Solicitor, Legal Services T. Hodgins, Commissioner, Development Services Dept. L. Knox, Senior Solicitor, Legal Services R. Stockman, Commissioner, Corporate Services Dept. Media S. Bertoia, Commissioner, Community Services Dept. Website P. Runcini, Director, Facility and Project Mgmt. Services Mayor/Councillor s Offices C. Brown, Director, Finance Services P. Paton, Project Manager

2 Report To: From: Council in Committee of the Whole Item: Date of Report: CM March 7, 2008 Bob Duignan File: Date of Meeting: City Manager F-6340 March 14, 2008 Subject: City Hall Revitalization Project Ward(s): All PUBLIC REPORT 1.0 PURPOSE The purpose of this report is to receive Council direction on the following items related to the City Hall Revitalization Project (CHRP): Project schedule and phasing; Leasing of temporary space off-site; Leadership in Energy and Environmental Design (LEED) accreditation a program to ensure sustainability and green design for the project; Lunch room and catering service in lieu of a cafeteria; Preliminary designs for offices of the Mayor and Councillors; Preliminary requirements and design for the new Council Chamber; Overall look and feel of the project; Approval process for construction tenders. On June 22, 2006 Council approved goals and objectives and spatial standards for the CHRP. These appear as Attachments No. 1 and 2. On July 5, 2007 Council approved a funding strategy and a preferred concept for the CHRP. A copy of the July 5, 2007 Council resolution appears as Attachment No. 3 to this report. On November 5, 2007 Council approved a resolution which clarified the construction method, tender package bundling and procedural issues. A copy of the November 5, 2007 Council resolution appears as Attachment No. 4 to this report. Pursuant to Council direction: Independent Project Managers (Dennis O Connell) has been retained to provide construction management services; A procurement process has been completed for architectural services. Only two bids were received (Barry Bryan Associates and Mills) and, following interviews, Barry Bryan Associates (BBA) was engaged;

3 of the Whole (Continued) Meeting Date: March 14, 2008 A procurement process has been completed for interior design services. Four bids were received and, following interviews, Mayhew Interior Design (Mayhew) was retained. Peter Paton is the staff lead working closely with Dennis O Connell and Paul Runcini. 2.0 RECOMMENDATION It is recommended to City Council: 1. That the preliminary phasing and schedule for the City Hall Revitalization Project (CHRP) be endorsed as set out in Report CM dated March 7, That staff be authorized to negotiate a lease for temporary space in the downtown in accordance with Report CM dated March 7, 2008 and that the Mayor and Clerk, upon receipt of a recommendation from the City Manager, be authorized to execute said lease; the form and content of the lease is to be to the satisfaction of the City Solicitor. 3. That Council provide direction on a LEED initiative pursuant to the information in Report CM dated March 7, That the City Hall Revitalization Project (CHRP) proceed on the following basis in respect to food services: (a) (i) Provide a small kitchenette (e.g. cabinets, countertop, sink, microwave, refrigerator and receptacle for coffee maker/kettle) on each floor/work area, as feasible; (ii) Provide an attractive and appropriately sized lunch room with tables, chairs, etc. and the capability to accommodate a catered dinner service as required; the opportunity for vending machines, etc. could be assessed at a later date with the possibility of extending the City s current vending contract for other facilities; and (iii) Establish a temporary location for a lunch room that can accommodate staff and catered meals associated with the Committee/Council schedule during construction. (b) The lease with the current cafeteria operator be allowed to lapse but that the current operator be provided with an opportunity to bid on any future food service contract.

4 of the Whole (Continued) Meeting Date: March 14, That, based upon presentations by the Architect and Interior Designers at the March 14, 2008 meeting, Council provide direction on:: Preliminary designs for the offices of the Mayor and Councillors; Preliminary designs for the Council Chamber; and The overall look and feel of the City Hall Revitalization Project. 6. (a) That, in light of the new schedule and phasing, Council reconsider Part 4 of its November 5, 2007 resolution which requires that Council approve the initial tender; and (b) The following be adopted: That, pursuant to Report CM dated March 7, 2008, the City Manager be authorized to award tenders associated with the City Hall Revitalization Project provided the tenders are within the budget estimates provided by the Construction Manager, Architect and Interior Design Team and the cumulative costs do not exceed the Council approved funding for the entire project. 7. That the Construction Manager provide a project update report to Council at every other regularly scheduled Council meeting beginning May 12, 2008 including a budget update reflecting tenders awarded and value. 3.0 EXECUTIVE SUMMARY On July 5, 2007 Council approved $12.3 million in funding for this project. The current budget is a high level estimate that has not yet been tested in the marketplace with tenders and could require revisions in the future or changes to the intended project scope. On June 22, 2006 July 5, 2007 and November 5, 2007 Council approved aspects of the CHRP including goals and objectives, spatial standards, funding, a modified construction management approach and the engagement of a Construction Manager, Architect and Interior Designer. These professionals have now been engaged and are proceeding with the work. A preliminary project schedule with phasing has been prepared for Council review and approval and is included in this report. A preferred offsite location in the Downtown BIA for the temporary relocation of staff has been identified and it is recommended that Council authorize the leasing of this space. Options and costs in respect to a LEED (Leadership in Environmental and Energy Design) initiative as part of the CHRP have been prepared and Council direction is required in respect to LEED.

5 of the Whole (Continued) Meeting Date: March 14, 2008 The construction schedule for the revitalization of 2 B Wing, requires the cafeteria to close by June The current lease with the cafeteria operator expires at the beginning of May It is recommended that the design of the CHRP not include a cafeteria service but rather provide for a reasonably sized lunch room, a catered dinner service for Committee and Council nights and the provision on each floor of a modest kitchenette (e.g. sink, counter, cabinets, microwave, refrigerator and electrical outlet for coffee pot/kettle). The Architect and the Interior Designer have prepared preliminary concepts for the offices of the Mayor and Councillors, Council Chamber and the overall look and feel of the CHRP. These plans will be presented at the March 14, 2008 Council meeting. Council direction on the preliminary concepts is required. 4.0 INPUT FROM OTHER SOURCES 4.1 General The following have provided input to this report: Corporate Leadership Team; Facility and Project Management Economic Development Services (Real Estate) Purchasing Services Independent Project Managers, Denis O Connell (IPM) Barry Bryan Associates (BBA) Mayhew Interior Design (Mayhew) 4.2 Auditor General The Auditor General has reviewed the report and supports the recommendations. 5.0 ANALYSIS 5.1 Phasing and Schedule The full project team (Construction Manager, Architect, Interior Designer, etc.) has had an opportunity to assess the project and prepare a preliminary schedule with phasing. This appears as Attachment No. 5 to this report. Key milestones in the preliminary schedule are: Opening of Temporary Customer Service Centre April 30, 2008 A Wing demolition July 2008 December 2008 New Council Chamber December 2008 March 2010 Renovations in Rundle Tower April 2008 June 2010 Full project completion June 2010

6 of the Whole (Continued) Meeting Date: March 14, 2008 While every reasonable effort will be made to achieve the schedule, it is very important to recognize that the schedule, at this time, is very preliminary and many external forces (weather, third party delays, availability of good contractors and materials, etc.) can impact the schedule. It is recommended that Council endorse the preliminary schedule and phasing. 5.2 Off Site Space It is necessary to secure about 12,000 square feet of off site space for the temporary (±2.5 years) accommodation of staff while the CHRP is underway. Pursuant to Council direction to investigate space preferably in the Downtown BIA, a variety of opportunities were explored. The most promising (in order of preference) are: 22 King Street West (Great Canadian Bagel Building) (within Downtown BIA) 17 King Street West (Avanti Restaurant Building) (within Downtown BIA) 111 Simcoe Street North (RBC securities Building) (not in Downtown BIA) It is recommended that staff be authorized to secure one of the preferred locations in order of preference and that the Mayor and Clerk be authorized to execute the resulting lease. For instance, efforts to reasonably lease 22 King Street West will be undertaken initially, however, if it cannot be secured, staff will move to the second preferred site, etc. The project budget includes an allocation for leasing off site space and it is anticipated, based on preliminary discussions with building owners, that space can be secured within the budget allocation. 5.3 LEED Staff advised Council in November 2007 that once the Architect was engaged it would receive an overview of the cost/benefits associated with a LEED initiative as part of the CHRP. LEED is a consensus based rating system for designing, constructing, operating and certifying sustainable green buildings. The LEED system awards points in 6 aspects of building and site development including: Sustainable Sites; Water Efficiency; Energy and Atmosphere; Materials and Resources;

7 of the Whole (Continued) Meeting Date: March 14, 2008 Indoor Environmental Quality; Innovation in Design Process. The total points accumulated determines the certification level of the building. These certification levels include accredited (lowest), silver, gold and platinum (highest). LEED accredited buildings have obvious benefits such as: Reduction of green house gases (GHG); Reduction of energy consumed; Reduction of waste generated; Reduction and preservation of water use; Reduction and preservation of resources consumed. LEED accredited buildings and renovations generally have higher capital construction costs than non-leed projects. These may be offset by operating savings over time, however, LEED cannot likely be justified by savings alone but, rather, must also be justified based on overall environmental benefits and leadership. Cost benefits of LEED buildings include: Energy cost savings; Potable water cost savings; Construction material cost savings. Staff cost savings associated with LEED buildings include: Reduced staff absenteeism; Reduced turnover; Increased production. Some examples of LEED certified buildings in Durham Region include: UOIT/Durham College Shared Athletic Facility; Durham Consolidated Courthouse (under construction); New Ajax Fire Hall; The Home Depot (Bowmanville); The new Operations Centre in Ajax is also planned to be a LEED building. LEED is considered to be a reasonable standard for green buildings at this time and is increasingly being recognized by the public as a responsible way to build and renovate. Potential LEED certification for the CHRP is covered by LEED for New Construction & Major Renovations (LEED NC).

8 of the Whole (Continued) Meeting Date: March 14, 2008 Within this certification system, there are three reasonably achievable options available for the CHRP: LEED Accredited, LEED Silver and LEED Gold. The Construction Manager, Architect and Interior Design Team have estimated the following order of magnitude premium costs: LEED Accredited LEED accreditation can be obtained within the established budget; LEED Silver Accreditation LEED silver accreditation can be achieved with a construction budget increase of 4-6% (± $360,000 - $570,000); LEED Gold Accreditation LEED gold accreditation can be achieved with a construction budget increase of 8-11% (± $720,000 - $990,000). The LEED initiative and associated cost increase would facilitate such green features as reduction of energy consumption by 30%, improved natural lighting, ground source heating, using local materials and green stewardship. In respect to a potential budget increase to accommodate a LEED initiative, the Commissioner of Corporate Services has advised that this can be accommodated within the existing funding strategy without impacting the tax levy. This is accomplished by extending the term of the interfund note which is repaid from increased dividends received from Oshawa Power and Utility Corporation. It is recommended that Council provide direction in respect to LEED certification. 5.4 Lunch Room, Catering and Kitchenette vs. Cafeteria City Hall has had a cafeteria service for several years. The lease with the current operator expires at the beginning of May Further, the current cafeteria is required to close in June 2008 to accommodate the schedule for the renovation of B Wing. The cafeteria does not pay any rent, utilities or maintenance. The nature and type of food preparation facilities in the current cafeteria cannot be replicated as part of the CHRP as various codes require that any new cafeteria have upgraded mechanical features (e.g. cooking hood and exhaust, etc.). These significant costs are not included in the currently approved budget allocation. City Hall is located in a revitalizing downtown with several private sector food service establishments available within a short walking distance. Meals required to facilitate Committee and Council schedules can be purchased from a caterer through a tender on an annual or longer basis.

9 of the Whole (Continued) Meeting Date: March 14, 2008 Having considered the ongoing subsidy, additional construction costs, availability of restaurants and coffee shops in the immediate walkable area and the ability to use a caterer for required meals, it is recommended that (a) The CHRP proceed on the following basis: (i) (ii) (iii) Provide a small kitchenette (e.g. cabinets, countertop, sink, microwave, refrigerator and receptacle for coffee maker/kettle) on each floor/work area, as feasible; Provide an attractive and appropriately sized lunch room with tables, chairs, etc. and the capability to accommodate a catered dinner service as required; the opportunity for vending machines, etc. could be assessed at a later date with the possibility of extending the City s current vending contract for other facilities; and Establish a temporary location for a lunch room that can accommodate staff and catered meals associated with the Committee/Council schedule during construction. (b) The lease with the current cafeteria operator be allowed to lapse but that the current operator be provided with an opportunity to bid on any future food service contract. 5.5 Preliminary Designs for Offices of Mayor and Councillors and Council Chamber The new Council Chamber will be in the vicinity of the link to the current A and B Wings. The Council approved design concept shows the offices of the Mayor and Councillors in renovated space on the second floor of B Wing in the current location of Information Technology Services, the cafeteria and some existing Councillors offices. BBA and Mayhew have prepared preliminary plans for the offices of the Mayor and Councillors and Council Chamber and will present these at the March 14, 2008 Council meeting. It is critical that Council provide timely comment and direction on the preliminary plans for its office area and Council Chamber in order to remain on schedule. 5.6 Look and Feel BBA and Mayhew have also prepared some preliminary look and feel concepts for the CHRP and will present these at the March 14, 2008 meeting.

10 of the Whole (Continued) Meeting Date: March 14, 2008 The selected concept will set the tone for the overall aesthetic and physical look of City Hall. Timely Council direction on the look and feel of the CHRP is required in order to move forward with the design phase, begin material selection and remain on schedule. 5.7 Tendering Part 4 of the November 5, 2007 Council resolution directs that the initial construction tender be approved by Council. At that time the initial tender was considered to be the renovation of the first two floors of B Wing. The current schedule anticipates bundling and prioritizing the tender packages as follows: Tender Package Phase 1: Renovation of 8 th and 9 th floor Rundle Tower and 2 nd Floor B Wing Tender Package Phase 2: Demolition of A Wing Tender Package Phase 3: New Council Chamber, 1 st Floor B Wing and exterior precinct Tender Package Phase 4: Renovations to balance of the facility Estimates for each of the tender packages are being prepared and will be continually updated by the Construction Manager, Architect and Interior Designer throughout the project. It is recommended that the City Manager award the tenders provided they are within the estimated budget amounts provided by the Construction Manager, Architect and Interior Design Team and the cumulative costs do not exceed the Council approved funding for the entire project. 5.8 Project Status Updates Project schedule, budget and risk management updates will be reported to the Corporate Leadership Team (CLT) at monthly Steering Committee meetings. Issues and cost reports to CLT will be broken down into demolition, new construction and the various renovation phases for reporting. It is recommended that the Construction Manager provide a short status report on the CHRP to Council in Committee of the Whole at every other Council meeting beginning May 12, 2008.

11 of the Whole (Continued) Meeting Date: March 14, 2008 The written report would be standardized and provide an overview of schedule, budget, work completed, work underway and management of project risks and tenders awarded. 6.0 FINANCIAL IMPLICATIONS The funding for this project is $12.3 million and was approved by Council on July 5, In respect to a LEED initiative, the Commissioner of Corporate Services has advised that the increased cost can be accommodated without impacting the tax levy. 7.0 RESPONSE TO THE COMMUNITY STRATEGIC PLAN The CHRP supports Goal A (A Vibrant, Strong and Progressive Community) and Goal B (A Green and Sustainable Community) of the Community Strategic Plan primarily through improving the City s image and conserving energy. ORIGINAL SIGNED BY Bob Duignan City Manager Attachments

12

13

14

15

16

17