FINANCE & INTERGOVERNMENTAL COMMITTEE AGENDA Special Meeting Tuesday, January 24, :30 PM - Heritage Room 2580 Shaughnessy Street

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1 FINANCE & INTERGOVERNMENTAL COMMITTEE AGENDA Special Meeting Tuesday, January 24, :30 PM - Heritage Room 2580 Shaughnessy Street 1. CALL TO ORDER 2. ADOPTION OF THE AGENDA 2.1 Agenda of January 24, 2017 Recommendation: That the January 24, 2017 Finance and Intergovernmental Committee Agenda be adopted. 3. CONFIRMATION OF MINUTES 3.1 Minutes of January 10, 2017 Recommendation: That the minutes for the January 10, 2017 regular Finance and Intergovernmental Committee meeting be adopted. 4. REPORTS 4.1 Election Bylaws Discussion 4.2 Financial Plan Amendment for Coast Meridian Road Upgrades Recommendation: That the Finance and Intergovernmental Committee recommend to Council that the Capital Plan be amended to include an additional $70,000 from the MRN Reserve and an additional $90,000 from the Water Accumulated Surplus to the Coast Meridian Rehabilitation project s capital budget. 4.3 Financial Plan Bylaw Amendment - Government Grant Project City Hall Front Entrance Accessibility Upgrade Recommendation: That $24,600 in grant revenue and an additional $24,600 project expense for the City Hall Front Entrance Accessibility Upgrade project be included in the financial plan. 5. RESOLUTION TO CLOSE 5.1 Resolution to Close Recommendation: That the Special Finance and Intergovernmental 1

2 Committee Meeting of January 24, 2017 be closed to the public pursuant to the following subsection(s) of Section 90 of the Community Charter: i) the receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose; 2

3 FINANCE & INTERGOVERNMENTAL COMMITTEE MINUTES OF TUESDAY, JANUARY 10, 2017 To review all matters referred to the Committee that are related to the overall administration of the City including human resources, the City's finances including audit, and other government organizations. A meeting of the Finance & Intergovernmental Committee of the Corporation of the City of Port Coquitlam was held in the Heritage Room, City Hall, 2580 Shaughnessy Street, Port Coquitlam, on January 10, 2017 at 4:34 pm. PRESENT: Mayor Greg Moore Councillor Laura Dupont Councillor Michael Forrest Councillor Darrell Penner Councillor Glenn Pollock Councillor Dean Washington Councillor Brad West STAFF REPRESENTATIVES: John Leeburn, Chief Administrative Officer Lori Bowie, Director of Recreation Nick Delmonico, Fire Chief Karen Grommada, Director of Finance Braden Hutchins, Manager of Corporate Office & Land Sharleen Karamanian, Manager of Accounting Services Sean Maloney, Superintendent (OIC) Pardeep Purewal, Manager of Communication and Administrative Services Laura Lee-Richard, Director of Development Services Tara Stroup, Emergency Program Officer Steve Traviss, Director of Human Resources C.J. James, KPMG Archie Johnston, KPMG Brandon Ma, KPMG Page 1 Minutes of the Meeting of the Finance & Intergovernmental Committee Held on January 10,

4 1. ADOPTION OF THE AGENDA 1.1 It was moved and seconded: That the Agenda of the January 10, 2017 Finance and Intergovernmental Committee meeting be adopted. CARRIED 2. ADOPTION OF MINUTES 2.1 It was moved and seconded: That the Minutes of the November 28, 2016 Finance and Intergovernmental Committee meeting be adopted as circulated. CARRIED 3. REPORTS 3.1 KPMG AUDIT PLANNING REPORT LETTER A presentation by KPMG Ms. Stroup arrived at 4:52 pm 4. ADJOURNMENT It was moved and seconded: That the Finance & Intergovernmental Committee meeting of January 10, 2017 be adjourned at 4:58 pm. CARRIED Greg Moore Mayor Karen Grommada Director of Finance The official Minutes of the January 10, 2017 Finance & Intergovernmental Committee Meeting are not read and adopted until certified correct by the Committee Chairperson. Page 2 Minutes of the Meeting of the Finance & Intergovernmental Committee Held on January 10,

5 Report to FIG Committee DATE: January 10, 2017 TO: FROM: Subject: Finance and Intergovernmental Committee Lee-Anne Truong, P. Eng. Manager of Capital Projects Coast Meridian Road Pavement Rehabilitation Project Funding Request EXECUTIVE SUMMARY: The 2016 Capital Budget included the works associated with the rehabilitation and upgrades of the road and watermain on Coast Meridian Road at a budgeted value of $660,000; $370,000 funded from the Major Road Network (MRN) Reserve Fund and $290,000 funded from the Water Reserve. The budget was accurate with respect to the costs of construction. Regrettably, pre-design, design and inspection costs were not included. This project was tendered in 2016, and only one bid was received which exceeded the available budget. The project was re-tendered in 2017, and while the City received four bids, the project still requires an additional $160,000 to proceed. This report recommends the project proceed, and that the shortfall be funded from the MRN Reserve and the Water Accumulated Surplus. RECOMMENDATIONS: That the Finance and Intergovernmental Committee recommend to Council that the Capital Plan be amended to include an additional $70,000 from the MRN Reserve and an additional $90,000 from the Water Accumulated Surplus to the Coast Meridian Rehabilitation project s capital budget. BACKGROUND/DISCUSSION: The 2016 Capital Budget included funding for the road rehabilitation of Coast Meridian Road between Prairie Avenue and Dorset Avenue. In addition to the road repairs, the 150mm watermain was also proposed to be replaced and upgraded. The road works are completely funded from Translink s Operations, Maintenance, and Rehabilitation (OMR) program. The water works are funded from the City s Water Reserve. The project was planned in 2015, and approved and designed in It was decided that the design would be completed in-house. Coast Meridian has a number of utility crossings of which depths and locations could not be confidently confirmed. As part of the design work, a portion of the funds were used to complete test pits and locates to obtain a better understanding of the underground utilities and identify potential conflicts with the proposed watermain alignment. The design was completed as expeditiously as possible and the tender documents were released to the construction industry in June of

6 Coast Meridian Watermain and Road Rehabilitation Project Funding Request Page 2 In anticipation that higher bid prices may be received as the project was tendered late in the year, the contract document was written to allow two bid prices one for completion of the project in 2016 and one for the completion of the project in Only one contractor submitted a bid for the work. The bid was from Jack Cewe Ltd. for the value of $744,393 (taxes excluded) for proposed work completed in 2016 and $625,310 (taxes excluded) for proposed work completed in Given that there was only one bid, the bid itself was over budget, and the timing of the tender (late in the year), the project was postponed to try to ensure the process was competitive (ie. receiving multiple bids). The project was retendered in November and closed on December 13, Four bids were received as follows: Contractor Bid (excluding GST) Jack Cewe Ltd. $671,745 J Cote and Son Excavating $886,000 Richco Contracting Ltd. $887,197 Pedre Underground Utility Contractors Ltd. $889,900 Unfortunately, the lowest bid at this time is higher than the original price submitted last year and higher than the project budget as follows: Task Updated Budget Survey, Locates, Inspection and $84,000 Contingency Road Works $400,835 Water Works $335,910 Total ~$820,000 Less: Task Existing Budget Road Budget $370,000 Water Budget $290,000 Total $660,000 Additional Budget Required: Task Additional Budget Road Budget $70,000 Water Budget $90,000 Total $160,000 It is clear based on the pricing received that this project was underestimated when originally planned in The budget allowed for only the external construction costs and did not account for additional costs associated with pre-design, design, costs associated with the watermain tie-ins, or inspection on the project. Moving forward, all of the projects presented in the program have design and Coast Meridian Watermain Funding Request

7 Coast Meridian Watermain and Road Rehabilitation Project Funding Request Page 3 inspection included in the funding request to ensure that the project was budgeted for all of the tasks required to complete the assignment. In hindsight (having the benefit of seeing the 2017 tender pricing), we ought to have awarded the work in 2016 despite only having received one bid. However, hopefully this helps to demonstrate the large degree of variation that can be encountered with construction tendering, and the difficulty staff and consultants face in trying to accurately estimate the cost of projects. OPTIONS: 1. Amend the budgets to include an additional $70,000 from the MRN Reserve and an additional $90,000 from the Water Accumulated Surplus to fund the project shortfall. 2. Defer the project. The watermain on Coast Meridian is due for replacement because of condition (three recent breaks) and it is currently undersized. As such, it is not recommended that the project be deferred. In addition, due to inflation and increasing construction prices, the potential to receive a more competitive price is unlikely. Lee-Anne Truong, P.Eng. Manager of Capital Projects Coast Meridian Watermain Funding Request

8 Report to Committee DATE: January 24, 2017 TO: FROM: SUBJECT: Financial & Intergovernmental Committee Rana McLean, Manager of Facility Services GOVERNMENT GRANT PROJECT CITY HALL FRONT ENTRANCE ACCESSIBILITY UPGRADE EXECUTIVE SUMMARY: In early January 2017, the City was notified that the Enabling Accessibility Fund grant application for completely accessible front entrance doors at City Hall has been approved by the Minister of Employment and Social Development Canada (ESDC). The amount awarded was $24,600 with the project starting after February 1, 2017 and work to be completed within one year. This addition to the carry-over of $32,500 from the 2016 project budget will bring the total budget for accessible City Hall front entrance doors to $57,100. RECOMMENDATIONS: That $24,600 in grant revenue and an additional $24,600 project expense for the City Hall Front Entrance Accessibility Upgrade project be included in the financial plan. BACKGROUND: The main entrance doors of City Hall do not provide for accessibility; the building was designed to meet accessibility requirements to City Hall via the east entrance. The current front entrance consists of two sets of manually operated heavy glass doors. It is difficult for individuals with disabilities, using mobility devices or with baby strollers to get through the two sets of doors, due to the lack of an automatic door opener and the distance between the two sets of existing doors. This renovation will eliminate the two sets of heavy glass doors and replace them with two sets of automatic glass sliding doors. The City allocated $32,500 to complete this project in Three quotes were obtained in July The quotes required changes to the exterior of the building to bring one set of the new doors outside the current building exterior in order to provide the required spacing. To maintain the aesthetic appeal of the building, a quote of $38,600 was considered to be the best option, which did not include additional costs for electrical and concrete foundation work that would be required to extend the outer set of doors. To accommodate higher project cost, an application to ESDC s Enabling Accessibility Fund through their Community Accessibility Stream was submitted on July 22, With additional funding, the scope of the project will be reviewed and options to eliminate the need for exterior building renovations will be explored, such as adjusting the interior set of doors vs. exterior. 8

9 Since this is a heritage building, any proposed exterior building changes must go through the Heritage Alteration Permit process. Once the project has been reviewed, and if required, a permit is issued, this project will be tendered. The grant funding will help alleviate any additional costs that may be incurred in providing an accessible, aesthetically pleasing main entrance that is well suited to a heritage facility. To satisfy the grant timeline, our goal is to tender and award the project by the end of March The City is committed to completing this work before December OPTIONS: 1. Amend the Financial Plan to include the grant revenue and additional expense. 2. Defer the project. Rana McLean Manager of Facility Services 9

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