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04 - August 1, 2023 Terrace Lodge Redevelopment Steering Committee Meeting Agenda Packaged/o zuiuulllr, o,fir D+ NA101 Terrace Lodge Redevelopment Steering Committee ORDERS OF THE DAY Tuesday, August 1, 2023, 1:00 p.m. Council Chambers 450 Sunset Drive St. Thomas ON NOTE FOR MEMBERS OF THE PUBLIC: Minutes will be posted to the Elgin County website following the meeting. Accessible formats available upon request. Pages 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. ADOPTION OF MINUTES 3 4. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF 5. DELEGATIONS 6. REPORTS/BRIEFINGS 6.1 Director of Homes and Seniors Services - Redevelopment Project Update (verbal) 6.2 Director of Financial Services/Treasurer - Terrace Lodge Redevelopment 6 Construction Costs Update 6.3 Manager of Corporate Facilities - Terrace Lodge Redevelopment Project 10 - Existing Building North and South Resident Home Areas Roof Insulation 7. OTHER BUSINESS 8. CORRESPONDENCE 9. CLOSED MEETING ITEMS 9.1 Closed Meeting Minutes - May 8, 2023 9.2 Advice re Development Progress Municipal Act Section 239 (2) (f) advice that is subject to solicitor -client privilege, including communications necessary for that purpose. 10. MOTION TO RISE AND REPORT 11. DATE OF NEXT MEETING 12. ADJOURNMENT Page 2 of 13 Diu i�oiY@11%;,, TERRACE LODGE REDEVELOPMENT STEERING COMMITTEE MINUTES May 8, 2023, 10:30 a.m. VIRTUAL MEETING: IN -PERSON PARTICIPATION RESTRICTED Members Present: Warden Ed Ketchabaw (virtual) Councillor Mark Widner (virtual) Councillor Jack Couckuyt (virtual) Councillor Todd Noble (virtual) Staff Present: Nicholas Loeb, Director of Legal Services Michele Harris, Director of Homes and Seniors Services Jennifer Ford, Director of Financial Services/Treasurer Jenna Fentie, Manager of Administrative Services/Deputy Clerk Stefanie Heide, Legislative Services Coordinator 1. CALL TO ORDER The meeting was called to order at 10.31 a.m. with Warden Ketchabaw in the chair. 2. APPROVAL OF AGENDA Moved by: Councillor Noble Seconded by: Councillor Couckuyt RESOLVED THAT the agenda for the May 8, 2023 meeting of the Terrace Lodge Redevelopment Steering Committee be approved as presented. Motion Carried. 3. ADOPTION OF MINUTES Moved by: Councillor Noble Seconded by: Councillor Widner RESOLVED THAT the minutes of the meeting held on March 14, 2023 be adopted. 1 Page 3 of 13 Motion Carried. 4. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF None. 5. DELEGATIONS None. 6. REPORTS/BRIEFINGS None. 7. OTHER BUSINESS I101rem 8. CORRESPONDENCE None. 9. CLOSED MEETING ITEMS Moved by: Councillor Noble Seconded by: Councillor Couckuyt RESOLVED THAT we do now proceed into closed meeting session in accordance with the Municipal Act to discuss the following matters under Municipal Act Section 239 (2): Closed Meeting Item #1: Advice re Development Progress (f) advice that is subject to solicitor -client privilege, including communications necessary for that purpose Motion Carried. 9.1 Director of Legal Services - Advice re Development Progress (walk- on) 10. MOTION TO RISE AND REPORT Moved by: Councillor Widner Seconded by: Councillor Couckuyt RESOLVED THAT we do now rise and report. Motion Carried. Closed Meeting Item #1: Advice re Development Progress 2 Page 4 of 13 Moved by: Councillor Noble Seconded by: Councillor Widner RESOLVED THAT the confidential report from the Director of Legal Services be received for information. Motion Carried. 11. DATE OF NEXT MEETING The next meeting will be held at the call of the chair. 12. ADJOURNMENT Moved by: Councillor Couckuyt Seconded by: Councillor Noble RESOLVED THAT we do now adjourn at 11.25 am to meet again at the call of the Chair. Motion Carried. Don Shropshire, Chief Administrative Officer/Clerk. Warden Ed Ketchabaw, Chair. 3 Page 5 of 13 1101111110 �M& ProgIressive by Nature RECOMMENDATION: 1 REPORT TO TERRACE LODGE STEERING COMMITTEE FROM: Jennifer Ford, Director of Financial Services/Treasurer DATE: July 27, 2023 SUBJECT: Terrace Lodge Redevelopment Construction Costs Update THAT the report titled, "Terrace Lodge Redevelopment Construction Costs Update" from the Director of Financial Services/Treasurer, dated July 27, 2023 be received and filed. INTRODUCTION: The purpose of this report is to provide the Terrace Lodge Steering Committee with a progress update on the costs incurred to date related to the Terrace Lodge Redevelopment project. DISCUSSION: Staff continue to work collaboratively with the Ministry of Long -Term Care and the Construction Team to move the project forward. This is achieved by regular site meetings and inspections, and frequent communications with the County's Construction Manager representatives from D.Grant Construction Limited. The project can be followed onthe communicationswe site itllp^ Phase One of the Terrace Lodge Redevelopment is completed with resident move in occurring at the end of May 2023. As we move forward into Phase two, some general items have been identified for consideration that may have a monetary component associated with them. In order to fully consider these items, the Committee does require an updated understanding of project costs incurred to date in order to enable informed decisions. Page 6 of 13 K FINANCIAL IMPLICATIONS: Below is a summary of the budgeted and actual construction costs and expected funding for the Terrace Lodge Rebuild up to and including July 7, 2023. The total budgeted project costs and HST are estimated to be $35,644,900 with a current budget of $35,628,012 set aside in the 2023 County Budget. At this time, approximately $2.61VI of the budget is pending allocation. At this time, it is expected that the $16,888 difference between costs and funding will be accommodated within that allowance. TL Rebuild Summary, Budget Actual Remainder ,ut duly 7, 202' Constnldioi7 29,646,463 19,971,836 9,,674,617 orascilti11g Services 3„3637„H4 2„890,577 473„387 Technology 686,,000 169,742 4,26,258 FUrnitUre & FiXt,Ures 67.,476 485,707 481,768 Mis:c:* 469.,832 193,463 276,369 HST (1 76%) 6,12,176 417,143 195,033 U t.otal 35,644, gg 24,118,468 11,526,432 Br,lclget' 36,6447„, 00 24„118,468 11,,626,432 Deficit SUrealris 'Provincial funcling: One Time One Tirne Transition FUnding Upon Complet,io17 Development FUnding 25 year ConstrUCtion FUnding Estimated Carrying Costs Dor117t share 2507„000 253,„000 3g„ ggg 2.674,000 19,6467,125 (5,642.0001 16,.9,587„,125 18.6,69,,,887 250,000 23„868,468 36,628,012 24,,118,,468 The last construction progress billing from D. Grant Construction detailed that the overall construction of the project is 69% complete. The original construction contingency within the current budget was originally set at $1,537,115 with 162 change order commitments either open or completed totalling $799,570.73. This leaves approximately $737,571 or 47.9% left in the budgeted contingency for the remaining two phases. To date, $1 M has been borrowed from Infrastructure Ontario to secure our position on our intent to complete a final borrowing of another $24M in 2024 or 2025. The term of these borrowings will be 25 years to match the funding we expect to receive from the province at this time. The finalization of the Infrastructure Ontario Loan is date Page 7 of 13 191 dependent and relevant to when final construction is completed. The Treasurer has requested that 10 be prepared to provide another $21VI under this envelope, if it is determined later in the project that this is required. Given the increase in interest rates, it has been Elgin's strategy to utilize as much of our own funds as we are able before taking draws down on the construction loan. This strategy will be maintained as long as we are able with focus on interest rates potentially returning to a lower amount as we near the end of 2024. As Council is aware, staff and council members continue efforts to lobby for additional construction funding subsidy to help mitigate the affects of this debt over the next 25 years. ALIGNMENT WITH STRATEGIC PRIORITIES: Serving Elgin ® Ensuring alignment of current programs and services with community need. ® Exploring different ways of addressing community need. ® Engaging with our community and other stakeholders. Additional Comments: Growing Elgin ❑ Planning for and facilitating commercial, industrial, residential, and agricultural growth. ® Fostering a healthy environment. ® Enhancing quality of place. LOCAL MUNICIPAL PARTNER IMPACT: None. COMMUNICATION REQUIREMENTS: Investing in Elgin ® Ensuring we have the necessary tools, resources, and infrastructure to deliver programs and services now and in the future. ® Delivering mandated programs and services efficiently and effectively. The public is encouraged to follow construction progress on the County's project we site ��i nnll ^ /!� �i� uaag guin e /nll„p � ��N�� ,�Il��ll 1,r:-�i[ uIt Page 8 of 13 CI CONCLUSION: At this time, the Committee has several items to consider that may require updated project budget information to assist them in making informed decisions. All of which is Respectfully Submitted Approved for Submission Jennifer Ford Don Shropshire Director of Financial Services/Treasurer Chief Administrative Officer Page 9 of 13 REPORT TO TERRACE LODGE REDEVELOPMENT STEERING COMMITTEE FROM: Ryan Terpstra Manager of Corporate Facilities DATE: July 27, 2023 SUBJECT: Terrace Lodge Redevelopment Project — Existing Building North and South Resident Home Areas Roof Insulation RECOMMENDATIONS: THAT the report titled: "Terrace Lodge Redevelopment Project — Existing Building North and South Resident Home Areas Roof Insulation" dated July 27, 2023 be received and filed; and, THAT the Terrace Lodge Redevelopment Steering Committee provide staff direction regarding the allocation of $160,005.10 plus applicable HST of the existing contingency budget towards insulating both the existing north and south building resident home areas. INTRODUCTION: This report provides details of the existing Terrace Lodge building architecture, proposal(s) regarding roof insulation, quotation details and budgetary options to insulate both roof areas within the existing building north and south resident home areas. BACKGROUND AND DISCUSSION: Phase One of the Terrace Lodge redevelopment project is complete with occupancy of the addition having been achieved. Upon commencing Phase Two demolition of the second -floor north wing interior, it was determined that the existing building had installed 6" of batt insulation directly on the acoustic ceiling tiles giving an R value of 22. Terrace Lodge redevelopment general contractor conducted further investigation to assess if any insulation was installed directly beneath the shingles. The report concluded that no insulation was found. Page 10 of 13 2 ,siaent home Area Koot rnotograpns Terrace Lodge facility was retrofitted with a wet sprinkler in 2013. The sprinkler was installed in the roof truss area, which creates risk for potential freezing due to the area being uninsulated. As part of the Phase 2 and Phase 3 renovation, it is proposed to install new spray - applied foam insulation directly on the underside of the sloped roof structure. This proposal will comply with the Ontario Building Code requirements, add a vapour barrier and provide the building with increased energy efficiency. Installing insulation at the roof lower level allows the truss area where sprinkler lines and ductwork that run through the attic to be on the warm side of the insulation. FINANCIAL IMPLICATIONS: As outlined below, the Terrace Lodge Redevelopment general contractor has provided costing for three (3) different R values of insulation, all of which are Ontario Building Code compliant. As the south wing insulation work would be completed during Phase 3 of the project, a 3% increase is included. Additionally, the installation of a higher R value of insulation will have a one to four -week impact to project timelines (as outlined below). Project timelines are impacted as the spray insulation can only be applied to a maximum of 3" at a time. North Wing Cost + tax South Wing Cost + tax Total Cost + tax Timing impact per wing 59,570.00 61,357.00 +19,250 +19,828 R30 =$78,820 =$81,185.10 $ 160,005.10 2 weeks 105,590.00 108,757.00 R50 +19,250 = +19,828 = $ 253,425.70 3.5 weeks Page 11 of 13 3 $124,840 $128,585.70 119,140.00 $ 122,714.00 +19,250 = +19,828 = R60 $138,390 $142,542.20 $ 280,932.20 4 weeks ALIGNMENT WITH STRATEGIC PRIORITIES: Serving Elgin ® Ensuring alignment of current programs and services with community need. ❑ Exploring different ways of addressing community need. ❑ Engaging with our community and other stakeholders. Additional Comments: Growing Elgin ❑ Planning for and facilitating commercial, industrial, residential, and agricultural growth. ❑ Fostering a healthy environment. ® Enhancing quality of place. LOCAL MUNICIPAL PARTNER IMPACT: None Investing in Elgin ® Ensuring we have the necessary tools, resources, and infrastructure to deliver programs and services now and in the future. ® Delivering mandated programs and services efficiently and effectively. COMMUNICATION REQUIREMENTS: Any impact to project timelines will be communicated to the Ministry of Long -Term Care Terrace Lodge Redevelopment Project Manager. CONCLUSION: Staff recommend that the Steering committee allocate $160,005.10 plus applicable HST to insulate the rooves of both existing north and south wings with a R30 insulation. The selection of R 30 will prevent the potential for freezing of sprinkler lines, improve building energy efficiency, does not require additional structural reinforcement but does impact the project timelines by a maximum of four (4) weeks, two weeks in each Phase 2 and Phase 3. All of which is Respectfully Submitted Page 12 of 13 Ryan Terpstra Manager of Corporate facilities Approved for Submission Don Shropshire Chief Administrative Officer/Clerk Page 13 of 13