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TO: |
Mayor and Members of Council |
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FROM: |
Jim Sales, Commissioner of
Community and Fire Services |
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PREPARED BY: |
Eardley Adams, Project Manager |
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Deborah Walker, Manager, Library
Strategy |
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DATE OF MEETING: |
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SUBJECT: |
Proposed Tendering of the |
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RECOMMENDATION:
THAT this report entitled “Proposed Tendering of the Markham Village Library Expansion
and Renovation” be received;
AND THAT the revised cost estimate
of $10,502,055 outlined in Table 1 on Page 3 of this report be approved;
AND THAT the revised square footage
of 38,360 square feet (12,500 sf for the expansion, 6,300 sf for the Library
Administration replacement and 19,560 sf for the renovation) be approved;
AND THAT the current funding shortfall
in construction, contingency & internal costs, in
the amount of $2,364,408, and the proposals to mitigate the shortfall outlined
in Table 3 on Page 5 of this report be reviewed in further detail by Finance
and reported to Council in the construction award report for the Markham
Village Library;
AND THAT the Furniture, Fixture & Equipment
portion of the project, in the amount of $741,405, and the Collections costs,
in the amount of $1,144,600, be funded from the Development Charges Reserve;
AND FURTHER THAT Council approve
tendering the Markham Village Library Expansion and Renovation as a
single-phase project.
PURPOSE:
The purpose of this report is to obtain Council
authorization to tender the construction of the Markham Village Library
expansion and renovation project as a single-phase contract.
BACKGROUND:
The Markham Village Library is located at
the southeast corner of
On
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New
Construction |
Replacement |
Renovation |
Total |
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Construction |
$3,095,850 |
$1,294,309 |
$2,101,925 |
$6,492,084 |
Note: The above cost
for construction includes contingency but does not include FF&E,
Collections and Internal Costs.
PRE-TENDER COST
ESTIMATE
TABLE 1
(A) - Detailed explanation for construction cost increases is included in
Attachment “B”
(B) - Construction contingency was increased by $116,853 due to higher
construction costs and to account for a project that is a mix of new
construction and renovation. Normally the percentage of renovation construction contingency is higher
than for new construction. In this case
the blended construction contingency in the revised cost estimate has been
established at 6% of construction.
(C) - Detailed breakdown of Internal Costs in included in Attachment “F”
Not included in the
project is a large portion of landscaping, it is anticipated that any shortfall
in landscaping at this stage will be provided during the Landscaping Master
Plan implementation (See Attachment C for more details). Also the existing condenser unit required for
ice making refrigeration in the Markham Community Centre arena will remain
without modification. Both these resulted from cost reduction measures.
However, it should be noted, the
final cost for this project will be determined with the construction tender.
FINANCIAL CONSIDERATIONS:
As outlined in Table 1 (on the previous page),
the original cost estimate for this project of $9,245,204 has increased by
$1,256,851 to $10,502,055. The $1,256,851
increase is in the areas of construction, construction contingency and internal
costs (e.g. increase from $7,359,199 to $8,616,050). Funding for the original cost estimate,
$7,359,199, for construction, contingency, and internal costs is outlined
below:
TABLE 2
The $1,107,557 labelled as “Non-Development
Charge Sources”, in Table 2, represented the amount in excess of Development
Charges in June 2004 and still requires a funding source to be identified (e.g.
funding shortfall). With the cost
increase of $1,256,851 in the revised cost estimates, the funding shortfall is
expected to increase. However, the
following funding sources were proposed to mitigate the increases in the
revised cost estimate:
TABLE 3
(A)
As outlined in Attachment B
(page 10), the new construction portion of the project has increased by 2,000
sf due to the energy improvements.
Accordingly, the Development Charges amount has increased by a total of
$469,380 ($422,442 DC Reserve Fund (90%) + $46,938 from the 10% Non-DC Reserve)
based on a cost per square foot of $234.69 in the DC Background Study.
(B)
As outlined in Attachment B
(page 10), the estimated energy savings from the energy improvements is $24,000
per year. The Library has proposed the
removal of $24,000 from the future base operating budget for utilities in the
expanded building in order to fund $250,000 of the funding shortfall. In addition, the energy improvements qualify
for a Canadian Building Incentive Program Grant which is estimated, by the
architect, to be $48,000. These sources
of funding would require up-fronting by the Town until the savings are
achieved/grant is received.
(C)
The Library Board also
proposes to fund $207,000 of the shortfall from 2006 Operating Savings
projections due to the closure of the Markham Village Library during
construction. The proposed savings will
be further reviewed by Finance.
The current funding shortfall, in the amount of
$2,364,408, is based upon the revised cost estimate and may increase/decrease
based upon construction pricing resulting from the construction tender
close. Therefore, the current funding
shortfall and the proposals to mitigate the shortfall (as shown in Table 3)
will be reviewed in further detail by Finance and will be reported to Council
in the construction award report for the Markham Village Library.
The Furniture, Fixture & Equipment portion
of the project, in the amount of $741,405, and the Collections costs, in the
amount of $1,144,600 (see Table 1) agree to the 2004 Development Charges
Background Study and it is recommended that they be funded from the Development
Charges Reserve.
ATTACHMENTS:
Attachment “A”- Discussions with the Public,
Accessibility Committee and Heritage Markham
Attachment “B” – Explanation for cost increases
subsequent to June 2004 Council Report
Attachment “C” – Landscape Master Plan
Attachment “D” – Cost Savings Identified
Attachment “E” – Resolutions of the
Attachment “F” – Increase in Internal Costs
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Catherine Biss, CEO, |
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Peter Loukes, P.Eng. Director of Operations and Asset Management |
__________________________________________
Jim Sales
Commissioner of
Community and Fire Services
Q:\Commission
Share\Operations and Asset Management\Reports\2005\C & U\Facilities\Markham
Village Library Tender Approval Gen Comm - Aug29, 2005.doc
ATTACHMENT “A”
DISCUSSIONS AND REVIEW OF DESIGN DEVELOPMENT OF THE
A.1
public meeting was held to review the schematic design on
At the
A.2 The Town’s accessibility committee
suggested improvements to the project
The project
consultant and Architect met with the Town’s Accessibility Committee on
A.3 Heritage
On
Heritage
Heritage
ATTACHMENT “B”
DETAIL EXPLANATION
FOR COST INCREASES FOLLOWING THE JUNE 2004 REPORT
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Description of
increased cost |
Cost |
May 2005 Cost
Estimate |
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B.1 |
Cost escalation – Two components led to this factor:
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$ 386,147 |
Included |
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B.2 |
Underground Storm Water storage – This is required as a result of
expanding the parking lot. Waste Management Room – Estimated cost to renovate an existing storage
room located at the south end of the arena. |
$ 101,680 $ 10,520 |
Included Included * |
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B.3 |
Window Replacement Lower Level – This improvement to the south
elevation of the basement would increase the amount of natural light and help
to improve the working environment. |
$ 18,651 |
Included |
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B.4 |
Energy Conservation measures |
$ 250,000 |
Included |
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B.5 |
Road Entrance improvements – Resulting from the traffic consultant’s
recommended modification to the intersection and resurfacing of the entrance
road access to the parking lot. |
$ 85,000 |
Included * |
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B.6 |
Asbestos removal allowance – Asbestos has been confirmed to exist in
the exterior stucco cladding; removal of all asbestos stucco will be
necessary. |
$ 40,000 |
Included ** |
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B.7 |
Upgraded hydro service |
$ 35,000 |
Included |
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Total |
$
926,998 |
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* Items
added resulting from Site Plan Approval* requirements and Asbestos abatement**.
B.1
Cost Escalation
There are
three components that have significantly increased cost on this project they
are:
a)
Steel Cost –
this component is the single largest contributor to increased cost and its
impact has been felt throughout the construction industry and in every
component containing steel. The steel escalation cost is estimated at $313,147.
b)
Project
Postponement – A host of elements has combined to significantly delay the
construction of this project. This
postponement has escalated the project cost by an estimated $73,000
B.2 The
Site Plan was approved by the Development Services Committee on May 17, 2005
A site
plan approval application was submitted on
Underground Storm Water Storage
The project includes the expansion of the parking lot. Town policy requires that, where new parking
lots are constructed or existing parking lots are expanded, storm water
discharge shall be retained on site for a period of time to lessen the impact
on the river system. In the case of this
project, the method used to retain storm water on site is by the installation
of large diameter underground concrete pipes at a cost of $101,680. This method of retaining water on site will
also assist in preventing possible basement flooding.
Waste Management Facility
During
the review, it was noted a waste management room would be a desirable addition
to the facility. This can be
accommodated by making some modification to a storage room on the south side of
the existing arena building, at an estimated cost of $10,520.
B.3 Basement windows will be
replaced and made larger to improve the environment for library administration
offices
The
existing basement windows on the south elevation of the building serves to
provide natural light to the existing multi-purpose / meeting rooms and are
used intermittently for short periods of time.
Upon reviewing the basement use as a Library administrative centre where
employees will be spending eight hours per day five days a week, it was
considered more appropriate to increase the amount of natural light to improve
the proposed office environment. The
decision to increase the window area was approved by the Library Board and the
BPCC. The cost of this improvement is
estimated at $18,651. Windows in the
remainder of the building will be replaced the cost of which is included in the
cost estimate.
B.4 A decision was made to relocate the mechanical
equipment from the roof to the basement within the building
Following the meeting with Heritage
Markham on
This matter was presented to the
BPCC. Given the constraints of heritage planning, design, and cost the decision
was made to place the mechanical equipment in the basement. This added an
additional 2,000 square feet of basement space at an estimated additional cost
of $200,000 or $100 per sq. ft.
Energy Improvements incorporated into the project and funded by
operational savings
During
the design process, the BPCC requested the Architect to explore improving the
energy efficiency of the building beyond the Town’s current standards. Through the evaluation process it was
determined that an investment of $250,000 would result in an annual operational
cost saving of 24.4% (or $24,000 per year) compared with the Town’s current
standard. The energy savings would
result in a cost recovered of the investment in 10.4 years. These improvements are also eligible for a
$48,000 Canadian Building Incentive Program (CBIP) grant. The placement of the HVAC equipment in the
basement is the most cost effective and cheapest floor space available. The additional 2000 sq. ft. of basement floor
space is necessary to accommodate the mechanical equipment and the capital cost
of the additional floor space plus the more environmentally friendly and energy
efficient equipment is included in the $250,000.
Additional Design Fees ($23,000) and fee for preparation of the CBIP
grant application ($10,000) is included in the Increases in Internal Fees (Attachment
F).
The Library Board has proposed the use of expected operating savings of
$24,000 per year and $48,000 CBIP grant to fund the Markham Village Library
project. On this basis, the BPCC supported proceeding with the design of the
improvements.
A public meeting
with
Option
1
The construction
of a new 4 way stop junction located at the intersection of
Option
2
Will utilizing the
existing entrance with modification to the entrance design. The consultant pointed out that both
entrances would work equally as well, though option 1 had the advantage of
improved traffic and pedestrian control.
Following the
presentation, residents indicated by a large majority their preference for
option 2 (modifications to the existing entrance rather than a new access road
with 4 way stop signs located south of the existing access). A further public meeting with
It is recommended
that option 2 be implemented. This
option has been incorporated into the design.
The cost of this work estimated at $85,000 was not included in the
original estimate and will increase the project cost.
B.6 The presence of Asbestos
has been identified in the exterior stucco and some of the stucco material will
need to be removed
An environmental audit of the building was conducted by an environmental
engineering firm who identified the exterior stucco to contain asbestos. This type of asbestos is harmless in its
present form or if left undisturbed.
However, this project requires the expansion of the existing building to
the east which requires the entire existing east elevation to be cleared of
stucco. Also the steel frames on the south elevation which are built into the
building presently support lattice.
These steel frames will need to be removed, and the removal operation
will cause some damage to the existing stucco around the steel frames.
The asbestos removal will be strictly controlled, and no other work will
be allowed to continue within that area while the asbestos removal operations
are in progress. As it is unclear
precisely how this will affect the project, an allowance of $40,000 has been
set aside for the removal of all the exterior stucco containing asbestos.
B.7
An upgraded Hydro service will be required
An examination of the existing electrical supply resulted in the need
for an upgraded hydro service to supply the existing and the new expanded
Library. The cost of this upgrade is
estimated at $35,000.
Over the
past months, the Architect has worked closely with Town staff to finalize the
building design. BPCC has been kept
up-to-date with the design process and has endorsed the current design.
ATTACHMENT
“C”
LANDSCAPE MASTER PLAN
The Landscaping Master Plan for the entire property is contingent on
several related issues
The Architect’s
sub-consultant Scott Wentworth, Landscape Architect, is presently working with
Urban Design staff and the Technical Advisory Committee to produce a Landscaping
Master Plan for the park property in which the Library is situated. The Master Plan is an important element of
the overall park design and ties-in the community and its surroundings to form
a key component to the development. The
Master Plan is an important feature that is distinct and separate to the site
plan approvals process. The Master Plan will
be taken to the community for public review once the work of developing
appropriate options has been completed.
The implementation of the Master Plan is reliant on several issues: the
new “Viva” transit system, the Highway 48 and Highway #7 intersection
improvements, reconstruction of Highway 48 south of Highway #7, the construction
of approximately 35 new residential homes south of the Library and the
completion of the Library expansion. The
Urban Design staff will address the Master Plan final design, its cost, phasing
the implementation and tendering under separate report.
The
landscaping included in the project is consistent with the options presented in
the master plan.
ATTACHMENT “D”
COST SAVINGS
To balance the design and achieve as close as
possible Council’s approved cost estimate, staff, the Architect and the Library
Board reviewed the design and construction plan for elements of the design that
could possibly be eliminated without having serious operational impacts on the facility. The second analysis considers the impact these
changes would have on Library operations.
The result is a table containing project cost savings that are agreeable
to staff and the Library Board.
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Col. # |
Description |
Amount |
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One Phase
Construction Design
Savings: |
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Landscape |
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1. |
Grass seed +
concrete walks only |
$30,000 |
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2. |
Do not move
condenser |
$36,000 |
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Building
Exterior |
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3. |
Asphalt
shingles on addition |
$47,000 |
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4. |
(Single phase)
Capital construction cost savings |
$106,000 |
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Sub total |
$219,000 |
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Other
Savings: |
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5. |
Energy conservation over 10 years |
$250,000 |
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6. |
During construction Library savings |
$207,000 |
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Sub total |
$457,000 |
D.1&2 Landscape
The Landscaping will be provided
during implementation of the Landscaping Master Plan and the arena condenser
will be retained
The
Landscape budget was reduced significantly by replacing planting materials with
grass seed and keeping concrete sidewalks, where necessary. The intent is to have the Landscaping Master
Plan provide further landscaping around the building, at some future time. No reduction of landscaping is contemplated
to the area between the arena and proposed Library.
The
moving of the arena condenser is seen as not critical to the Library’s
functional operations, although some improvements to the acoustic protection of
the new Library will be necessary. (The
cost of these acoustic measures is reflected in the savings.) The condenser unit is required for ice
making. The life expectancy of the arena has been stated to be between 6 to 10
years and the condenser will no longer be required once the arena is
decommissioned.
D.3 Building Exterior
The proposed sheet metal roof will be replaced with asphalt shingles
Replacing sheet metal roofing on the addition with
asphalt shingles will not affect Library programming and will provide a
significant saving. The asphalt shingle
roof will have a 20-year guarantee and will need to be replaced at or about
that time; however, the sheet metal roof would not need to be replaced for 40
years or more. The renovation of the
existing building includes replacement of the existing asphalt shingle roof
with asphalt shingles.
These cost savings have been incorporated into the
current cost estimate.
D.4 Single Phase Operational Savings
Significant
savings are achieved by adopting a one-phase construction approach
The Town of
A single-phase construction process
benefits this project in many ways
The
Architect recommends that the expansion and renovation of the existing Library
be completed as one operation, due to the opportunity for reduced construction
costs, the increased assurance of safety-code compliance and reduced public
inconvenience. The analysis is stated
below:
·
In a two-phase
construction process, there would be no safe or convenient means for the public
to access the Library from the parking lot.
Construction traffic will route through the parking lot and around the
west end of the existing building. This
means, during phase one, that Library customers would have to access the
existing building through a parking lot that would also serve as a construction
traffic route. During phase two, while
the existing building underwent renovation, the public, to reach a temporary
entrance point into the new structure (probably through a temporary door in a
bay window on the west façade), would have a long walk from the parking lot
around the west end of the building, with exposure to unsafe conditions from to
construction traffic and other construction activity.
·
Building codes require
two exit stairs for a public library facility.
Since the exit stairs in the existing building’s northeast corner will
have to be blocked/demolished early in the construction process, each of two
construction phases would involve the cost of constructing temporary exit
stairs on scaffolding to meet code.
·
Operating Library
services next to construction would result in construction dust and odours in
HVAC systems (old and new).
·
In a two-phase
construction process, a shutdown period of at least one month would be required
to integrate the old and new structures.
·
In a two-phase
construction process, existing collections, IT components, stacks, and other
furnishings must be moved at least twice.
·
In a one-phase
construction process, 4 months of construction time and $106,000 in capital
construction cost will be saved through cost avoidance.
·
A one-phase construction
process entails less risk for both the builder and MPL as owner.
Therefore, the Architect recommends
construction and renovation should proceed as one-phase and Library services
from the current location be suspended during construction.
The Town of
Through the cooperation of the Recreation
Department, the ground floor of the Markham Village Arena is available as a
temporary Library during the period of construction and renovation of the new
facility. The Technical Advisory Committee
(TAC) is working to produce a transition strategy and a project management plan
for this change-over to occur. Any
modifications to the Arena ground floor space will be completed and operational
before construction on the new facility begins.
On that basis, it is recommended that Council
approves proceeding with a single phase construction of the expansion and
renovation.
D5. The
explanation of energy conservation is explained in attachment ‘B’ sub clause
B4.
D6. The
explanation of library operational saving during construction is explained in
attachment ‘E’.
ATTACHMENT “E”
RESOLUTIONS OF THE
Analysis of Savings supported by Town of
The above
summary and analysis of potential cost savings was discussed with the Town of
Markham Public Library Board (TOMPLB) at a meeting held on
“RESOLVED THAT: The Library Board has considered a number of
options to deal with the difference between the design and construction cost
estimate approved by Council on June 24, 2004 for $6,492,084 and the January
2005 construction estimate of $7,286,611 prepared by Shoalts and Zaback Architects
and recommends the following:
AND THAT: while the Board appreciates the
considerable budget pressures that face Council, we do not believe that the
increased cost of steel and other building materials should reduce the approved
functional program and space for the Markham Village Library expansion.
AND THAT: in the spirit of sharing the budget
problem so as to reduce the cost to the taxpayers of Markham, that the
following options have been considered by the Board and are presented to
Council as the Library Board’s proposal to reduce the difference:
One Phase Construction savings:
Modified version of landscaping $ 30,000
Asphalt shingles on the addition $ 47,000
Not to move the arena condenser $ 36,000
Total Savings $426,000
RESOLVED THAT:
the library staff is directed to respond to the Architect’s report and
ask the Architects to consider that response in preparing its report to town
staff, specifically, parking, elevator and ramp.
AND FURTHER THAT: the Architects
seek a response and recommendations from the accessibility committee as to
those aspects of the report.
ATTACHMENT “F”
Internal Costs – Cost Breakdown Table
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Col.
# |
Description |
Cost
Allocation |
Original
Amount |
Increased
by |
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Fees for Service |
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Design Fees |
$599,650 |
$ 574,650 |
$ 25,000 |
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Disbursements |
$ 30,000 |
$
50,000 |
-$ 20,000 |
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Miscellaneous Fees |
$ 20,000 |
$
20,000 |
$ |
|
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Project Management Fees |
$ 14,000 |
$ |
$ 14,000 |
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Security |
$110,000 |
$
50,000 |
$ 60,000 |
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Fee Contingency |
$ 62,465 |
$
62,465 |
$ |
|
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Signage |
$ 50,000 |
$
50,000 |
$ |
|
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Miscellaneous Expenses (Moving) |
$ 80,000 |
$ 60,000 |
$ 20,000 |
|
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IT Cables (Voice and Data) |
$ 57,000 |
$ |
$ 57,000 |
|
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Insurance |
$ 20,000 |
$ |
$ 20,000 |
|
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Communications |
$ 4,000 |
$ |
$ 4,000 |
|
12. |
Design Fee ($23,000) for Energy Improvements & Fee for preparation of Canadian Building Incentive Program grant application ($10,000) |
$ 33,000 |
$ |
$ 33,000 |
|
|
Total |
1,080,115 |
$ 867,115 |
$213,000 |
Q:\Commission Share\Operations and Asset
Management\Reports\2005\C & U\Facilities\Markham Village Library Tender
Approval Gen Comm - Aug29, 2005.doc
