REQUEST FOR DECISION
DATE: April 7 10, 2021 Report No. EPW-21-009
TO: Laurie Hurst, Chief Administrative Officer
FROM: Jeff Miller, Director of Engineering and Public Works
SUBJECT:
Title
Esquimalt Town Square Offsite Serving Budget Reallocation End
RECOMMENDATION:
Recommendation
That Council approve an increase to the Esquimalt Town Square Off Site Servicing budget of $100,679 from Accumulated Surplus as set out in Staff Report No. EPW-21-009.
Body
RELEVANT POLICY:
Subdivision and Serving Control Bylaw, 1998, No. 2175
STRATEGIC RELEVANCE:
Local Services and Infrastructure - Identify infrastructure repair and proactively plan for replacement
BACKGROUND:
A component of the Esquimalt Towns Square (ETS) project was the construction of offsite serving. This work included construction of sidewalk, curb and gutter, storm water management features (rain gardens), manhole replacement, asphalt restoration and street lighting. These components of infrastructure were designed in conjunction with the overall ETS project with construction being carried out by one of the contractors retained by the Developer for the ETS project. The ETS project is nearing completion but during construction several factors have presented themselves that have created a shortfall in the budget.
ISSUES:
1. Rationale for Selected Option
During the course of construction, several factors have occurred and impacted the project budget. These factors included: insufficient road base structure (Carlisle/Park Place), remove and replace manhole, field changes to works, COVID-19 impacts on construction, increased consultant costs due to construction methodology and contractor performance. Also, several design costs that were incurred early in the project life that were not brought forward to the Township require payment.
By reconstruction of the road base structure, the new portion of the road met the Subdivision and Servicing Control Bylaw standards. This reconstruction also will extend the overall life expectancy of this road segment. A storm manhole required removal and replacement due its poor condition that was discovered when lines were tied into it. Several field changes occurred which resulted in credits and costs. Due to COVID-19 and the construction methodology utilized, consultant costs have increased due to increased number of site visits and time to complete the work. These costs have also increased beyond what was anticipated when the budget was set due to increased interactions with the various contractors to address performance issues. The project is coming to conclusion and it is anticipated that any further changes will be minimal in nature and not significantly impact the budget. It is the staff recommendation that the ETS budget be increased by $100,679 to cover of these costs.
2. Organizational Implications
There are no organization implications. The CAO, Directors of Finance, Development and Eng./PW have been involved in various degrees and functions for the completion of the ETS project. As such the necessary activities have been incorporated into their work plans for the year.
3. Financial Implications
The budget approved for this offsite servicing portion of the ETS project is $650,231. This included a contingency of $24,214 (5%). A breakdown of the project budget is as follows:
Construction cost
• Offsite servicing - $287,686
• Landscaping - $144,580
• Irrigation - $ 6,000
• Aragon - $ 46,023
• Management fee - $ 48,428
• Subtotal - $532,717
•
• Contingency (5%) - $ 24,214
• Consultants - $ 93,300
• Subtotal - $117,514
•
• Total - $650,231
During construction these additional costs were incurred:
• Road base reconstruction - $45,334
• Manhole removal and replacement - $ 6,900
• Field adjustment/credits - $ 6,945
• Design costs - $21,500
• Project Management costs - $20,000
• Total - $100,679
The increased cost of $100,679 to the project budget would be funded from Accumulated Surplus where there are sufficient funds to support these costs. An alternative to solely utilizing Accumulated Surplus could see the road base reconstruction costs being allocated to Road Infrastructure Repairs and Maintenance capital project.
4. Sustainability & Environmental Implications
The off-site servicing portion of ETS contains several rain gardens that will assist in the cleanup of stormwater runoff from the roads adjacent to the site. The manhole, concrete, gravel, asphalt, and lighting components of the project are assets that have been fully renewed and are at the beginning of their service life.
5. Communication & Engagement
The Township will continue to communicate with Aragon, the Consultants and Contractors to complete the project and commission it.
ALTERNATIVES:
1. That Council approve an increase to the Esquimalt Town Square Off Site Servicing budget of $100,679 with funding from Accumulated Surplus as set out in Staff Report No. EPW-21-009.
2. That Council approve an to increase to the Esquimalt Town Square Off Site Servicing budget of $45,334 from Road Infrastructure Repairs and Maintenance capital project and $55,345 from Accumulated Surplus as set out in Staff Report No. EPW-21-009.