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RFD- 3264 Business Items   Item #   10. b.    
Regular Council Meeting Agenda
Meeting Date: 03/12/2018  
Title:    Corporate Plan Amendment - Protective Services Building - Wolanski
Department: Community & Protective Services  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life Related Goal: Citizens consistently express high levels of satisfaction with municipal services.

Request for Decision Summary
Following the recent tender analysis, a budget increase and Corporate Plan Amendment is required in order to continue to move forward with the Protective Services Building.

Proposed Motion
That the Corporate Plan Amendment for CE588.3 - Design and Construct a New Protective Services Facility with a funding increase in the amount of $2,800,731 be approved as presented.

In 2016, Council approved the construction of an addition and renovations to the current Protective Services facility.  The project plan included several phases due to the complexities of construction in and around a renovation and overall site limitations.  When examining alternative sites, the option around an addition and renovation to the existing site originally (June 2016) had an estimated budget of $23,120,000 with a possible range of $17.5-$24 million.  This was a high level estimate developed by the architect during the functional planning stage prior to any commencement on drawings and fit within the City's Corporate Plan Capital parameters of +/- 25% for projects within the projected  window for completion.  A revised budget of $20,885,000 was developed in December 2016 from a cost consultant for the Corporate Plan and Council's approval based on conceptual design.  This total number is what exists currently in the Corporate Plan.  

The first phase called for the relocation of the existing ball diamond, sports field, and removal of the running track.  There were several issues around drainage and site work (earth moving) that required additional expenditures.  The next phase called for preparation of the site for the building itself which also included structural elements (piling) that were not anticipated to the level originally estimated.  These first phases were tendered and completed separately from the building itself in order to facilitate the completion of the detailed building drawings and to ensure a project schedule that was the most efficient possible.  Updated estimates at various stages were completed, along with an analysis of the actual expenditures, which did show a potential for a higher budget; however, administration did not have a true indication of the real costs until the building design was completed and the tender was issued and scrutinized.

While the majority of the estimated budget overage relates to the site works, additional increases were seen in post disaster design requirements, electrical systems, Information Technology, and overall design costs (mainly attributable to external site works).  The overall budget is higher than anticipated; however, remains below the original estimates and is within the +/- 25% of the existing budget which is typical for a project of this magnitude.
To date, approximately $2.8 million has been expended in preparing the site (both for the facility and entire area) and doing the necessary sport field and ball diamond relocation.  Council could certainly choose to defer or cancel the project; however, it would certainly not be recommended with the investment that has been made to date, the lack of alternative locations and unknown costs, and the required need for this upgrade.

Administration has discussed in great detail if there are any design or functional elements that could be removed or altered in order to reduce the budget.  Any possible alternatives in this regard would see minimal savings on the capital side and increased operational costs.  In other words, the minor savings that would be realized would be offset and end up costing far more on the operational side over the life of the building.  Additionally, any design changes would significantly delay the project schedule.
If approved, administration would inform our construction management company who would then award the various sub-trade work to the successful proponents.  Work would continue as scheduled.
If approved there is no impact on the construction schedule.  The main impacts are on the financial side detailed further in this Request for Decision.  

Fiscal Impact
Financial Implications:
Original Estimated Budget - $23,120,000

Current Approved Budget - $20,885,000

Revised Budget (seeking approval for) - $23,685,731

Additional Budget total - $2,800,731

*The revised budget includes a 3% design contingency and a 3% construction contingency.

**The source of funding identified in the Corporate Plan is debt.  The additional requirement would be funded in the same manner resulting in an increase to the City's estimated net debt position. This increase in borrowing is in keeping with the City's Debt Management Policy. 
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