05 - October 10, 2023 Terrace Lodge Redevelopment Sterring Committee Meeting Agenda Packaged/o zuiuulllr,
o,fir D+ NA101
Terrace Lodge Redevelopment Steering Committee
ORDERS OF THE DAY
Tuesday, October 10, 2023, 8:00 a.m.
Council Chambers
450 Sunset Drive
St. Thomas ON
NOTE FOR MEMBERS OF THE PUBLIC:
Please click the link below to watch the meeting:
https://www.facebook.com/ElginCountyAdmin/
Accessible formats available upon request.
1. CALL TO ORDER
2. APPROVAL OF AGENDA
3. ADOPTION OF MINUTES
4. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE
THEREOF
5. DELEGATIONS
6. REPORTS/BRIEFINGS
6.1 Director of Financial Services/Treasurer - Terrace Lodge Redevelopment
Construction Costs Update
6.2 Manager of Corporate Facilities and Director of Homes and Seniors
Services - Terrace Lodge Redevelopment 2023 Project Update/Wall
Partition Change Order
7. OTHER BUSINESS
8. CORRESPONDENCE
9. CLOSED MEETING ITEMS
10. MOTION TO RISE AND REPORT
11. DATE OF NEXT MEETING
12. ADJOURNMENT
Pages
2
0
10
Diu i�oiY@11%;,,
TERRACE LODGE REDEVELOPMENT STEERING COMMITTEE
MINUTES
August 1, 2023, 1:00 p.m.
Council Chambers
450 Sunset Drive
St. Thomas ON
Members Present: Warden Ed Ketchabaw
Councillor Mark Widner
Councillor Jack Couckuyt
Councillor Todd Noble
Staff Present: Don Shropshire, Chief Administrative Officer/Clerk
Nicholas Loeb, Director of Legal Services
Michele Harris, Director of Homes and Seniors Services
Jennifer Ford, Director of Financial Services/Treasurer
Ryan Terpstra, Manager of Corporate Facilities
Stefanie Heide, Legislative Services Coordinator
1. CALL TO ORDER
The meeting was called to order at 1.00 p.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 August 1, 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 May 8, 2023 be adopted.
1
Page 2 of 15
Motion Carried.
4. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE
THEREOF
None.
5. DELEGATIONS
None.
6. REPORTS/BRIEFINGS
6.1 Director of Homes and Seniors Services - Redevelopment Project
Update (verbal)
The Director of Homes and Seniors Services provided a verbal update on
the Redevelopment Project.
Moved by: Councillor Couckuyt
Seconded by: Councillor Widner
RESOLVED THAT the verbal Redevelopment Project Update Report from
the Director of Homes and Seniors Services be received.
Motion Carried.
6.2 Director of Financial Services/Treasurer - Terrace Lodge
Redevelopment Construction Costs Update
Moved by: Councillor Noble
Seconded by: Councillor Couckuyt
RESOLVED 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.
Motion Carried.
6.3 Manager of Corporate Facilities - Terrace Lodge Redevelopment
Project - Existing Building North and South Resident Home Areas
Roof Insulation
Moved by: Councillor Noble
Seconded by: Councillor Couckuyt
RESOLVED 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
2
Page 3 of 15
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.
Motion Carried.
7. OTHER BUSINESS
None.
8. CORRESPONDENCE
None.
9. CLOSED MEETING ITEMS
Moved by: Councillor Widner
Seconded by: Councillor Noble
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 - Closed Meeting Minutes - May 8, 2023
Closed Meeting Item #2 - Advice re Development Progress
(f) advice that is subject to solicitor -client privilege, including communications
necessary for that purpose
Motion Carried.
9.1 Closed Meeting Minutes - May 8, 2023
9.2 Advice re Development Progress
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 - Closed Meeting Minutes - May 8, 2023
Moved by: Councillor Noble
Seconded by: Councillor Couckuyt
3
Page 4 of 15
RESOLVED THAT the Closed Meeting Minutes from the May 8, 2023 meeting be
adopted.
Motion Carried.
Closed Meeting Item #2 - Advice re Redevelopment Progress
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 Noble
Seconded by: Councillor Couckuyt
RESOLVED THAT we do now adjourn at 1.48 p.m. to meet again at the call of
the Chair.
Motion Carried.
Don Shropshire,
Chief Administrative Officer/Clerk.
Warden Ed Ketchabaw,
Chair.
0
Page 5 of 15
1101111110 �M&
ProgIressive by Nature
RECOMMENDATION:
1
REPORT TO TERRACE LODGE
STEERING COMMITTEE
FROM: Jennifer Ford, Director of Financial
Services/Treasurer
DATE: October 2, 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 Oct 2, 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 and updated information related to the remaining value in the
contingency fund.
Page 6 of 15
K
FINANCIAL IMPLICATIONS:
TL Rebuild Summary
Budget
Actual
Remainder
As,at October 2, 2023
Constnldi011
297,646,453
21,079,89,6
8,56,6,557
C011SL11ti11g Services
37,36,3,9,64
2,947,476
416,488
Technology
585,000
249,901
336,099
FUrnitUre & FiXtUres
967,476
614,896
462,680
Misc"
46,9,832
205,936
263,89,6
HST (1 76%)
612,176,
439,9,67
172,209
SUblotal
357644,900
25,438,070
10,206,830
B Ltdg P- t '
357644,900
25,438,070
10,206,830
Deficit/SUrPILIS
Current cost of 25M over 25 "ors @5..1013% 447,46,9,785 1,778,791
Annual OFS to repay IDebt (197,646,126), (785,846)
Debt relpaid by Tax over 25 Years 247,82,3,6,60 992,946
Total Ta�xes now e�, pectecl to be reqUired 9,9,2', 94 6 231%
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. 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. There has
been no further borrowings taken out since our original $1 M.
Staff and council members continue to seek out opportunities to lobby for additional
construction funding subsidy to help mitigate the affects of this debt over the next 25
years.
Contingency Fund Update
The last construction progress billing from D. Grant Construction detailed that the
overall construction of the project is 71.44% complete at Aug 31, 2023 (last invoice
paid).
Staff recently learned that there were several differing versions related to the project's
uncommitted and available contingency fund. In short, Elgin's information relied on the
use of invoices that are reporting one to two months behind what was happening
immediately in the field. Therefore, our contingency commitment information was not
the most current. Another team in the field was using the incorrect starting point for the
original budget. Staff have since been able to collaborate with several sources to
update and confirm the current information.
Page 7 of 15
191
The construction contingency within the current budget has been confirmed to be set at
$1.537M with a current commitment of 181 change orders totalling $1.261 M. This
leaves $276K available in the uncommitted contingency envelope. Approximately 56%
of the work related to committed change orders has been completed. The value of
contingency commitments relative to project completion to date indicates that we will
run out of uncommitted contingency fund allowance before we enter into Phase three of
the project.
Staff have reviewed available options with the contractor to ensure the contingency fund
can be contained. Within the original construction contract, there are other allowances
that remain unspent at this time. D. Grant advises that they do not plan to use these
allowances. As a result, Elgin has the flexibility to move these allowances via the
change order process over to the contingency envelope. The value of these available
allowances would add $533K to the existing contingency fund for use during the Phase
Two and Phase Three.
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.
Page 8 of 15
CI
COMMUNICATION REQUIREMENTS:
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[u:
CONCLUSION:
At this time, the Committee has additional costs to consider that 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 15
I/0000
roA!r ssived ky Nature
RECOMMENDATION:
1
REPORT TO TERRACE LODGE
REDEVELOPMENT STEERING
COMMITEE
FROM: Ryan Terpstra, Manager of Corporate
Facilities
Michele Harris, Director of Homes and Seniors
Services
DATE: September 29, 2023
SUBJECT: Terrace Lodge Redevelopment - 2023
Year project update / Wall Partition Change Order
THAT the September 29, 2023, report titled, Terrace Lodge Redevelopment - 2023
Year project update /Wall Partition Change Order be received and filed.
THAT the change order for the extension of wall partitions to the underside of the roof in
the amount of $67,749.89 plus unrebated HST be allocated from the Terrace Lodge
Contingency allowance budget.
INTRODUCTION:
Terrace Lodge Long -Term Care home located in Malahide Township, Elgin County was
built in 1977 and has been home to thousands of residents. The 100-bed home was
built to a 1972 standard making it now a Class C home. The redeveloped home is being
built to a Class A standard and will include additional common area spaces, a servery
and dining room in each resident home area, and the majority of rooms will be private
rooms with their own washroom; all to enhance resident quality of life, care standards
and infection prevention and control standards.
The purpose of this report is to provide the Steering Committee with an update on the
status of the Terrace Lodge Redevelopment Project progress achieved in 2023.
DISCUSSION:
May 29t" 2023 was officially the Phase One move in day to the addition for sixty (60)
residents. Support was received from volunteers, resident family members, Terrace
Lodge staff and staff from across the County to ensure a smooth and welcoming
transition to their new room and space. Additionally, Terrace Lodge welcomed Minister
Page 10 of 15
K
-m Care Paul Calandra, MPP Rob Flack, Warden Ed Ketchabaw and
........--.- F council to tour the addition on July 4 2023 and officially announced to the
community the opening of Phase 1 of the project. Walking into the addition with the
enhancements is extremely welcoming and inviting for Terrace Lodge residents,
families and staff.
Currently, the status of construction activities for Phase Two of the Terrace Lodge
Redevelopment Project are progressing within the project timelines. Phase Two portion
includes the renovation of the north wing, the main kitchen and staff areas within the
basement with an anticipated completion of March 2024. First floor windows are
installed and walls are being drywalled. Second floor spray insulation to the underside
the roof is complete and wall studs are being erected.
Prior to the completion of Phase One, it was found that both the north and south wings
entering into the addition, and at the connection point from the new elevator have an
elevation change of -75 mm. This change was not part of the initial design. During
phase One construction, a 1 to 20 pitch grade change/" slope" was built to
accommodate the change in elevation. This meets the Ontario Building Code (OBC) but
resulted in an operational impact for staff and residents in their daily routines. The grade
of the slope will be changed to a 1 to 80 to support overall safety in transitions for staff
and residents and improve operations. The north wing slope alteration is scheduled for
the week of October 9t" and the south wing will be altered during Phase Three of the
project.
Since the occupancy of Phase one, it has been noted that there are excessive amounts
of humidity throughout the building. The building has been constructed with make up air
(MUA) units in the corridors, bringing in 100% fresh air creating a positively pressurized
building. If the temperature outside is the same temperature as the inside, the
thermostat is then requesting neither heating or cooling. The heating and cooling aids in
the removal of the humidity so without it, raw outside air is dumped in the facility
creating uncomfortable temperature conditions. The County is working with D. Grant,
the county's contractor for the Terrace Lodge Redevelopment project, along with Smith
and Anderson (engineering) to find a solution, to date no adequate solution has been
provided.
As Phase Two is underway it was found that architectural drawings provided MMMC
Architectural called for the interior wall partitions to only extend 2400mm. To meet the
requirements of the OBC 3.3.3.5.(9) the wall partitions must create a fire separation
between resident sleeping rooms. To meet this requirement, drywalled walls must be
extended to the underside of the sloped roof. D. Grant has provided a change order in
the amount of $67,749.89 plus HST for both Phases two (north side) and three (south
Page 11 of 15
191
side) to complete this work. Staff recommend that the Terrace Lodge Redevelopment -
contingency allowance budget be utilized to complete this work.
Staff continue to work with the Ministry of Long -Term Care and the Construction
Management Team to continue to move the project forward. This is achieved by regular
site meetings and inspections, and frequent communications with our construction
manager. The project can be followed on the communications website
LIL« i i i� il.:t. We have also included a number of
photographs attached to the report which showcases the progress of the construction
achieved throughout 2023.
FINANCIAL IMPLICATIONS:
As reported by the Treasurer, the construction contingency within the current budget
has been confirmed to be set at $1.537M with a current commitment of 181 change
orders totalling $1.261 M with $276K remaining. Staff have also confirmed with D. Grant
that there are unused allowances that exist within the current budget in the amount of
$533K.
Through the change order process, staff can approve MMMC/D. Grant to move the
unused allowances to the current contingency fund to ensure there are sufficient funds
to contain costs within the current project budget. It is recommended to move $400K
immediately from the Flat Roof Allowance envelope into the contingency fund
enhancing the contingency budget to $676K for the remainder of Phase Two and Phase
Three. Staff, and D. Grant, are comfortable that the Flat Roof Allowance will not be
required by D. Grant. With these funds moved, it is anticipated that the additional costs
presented today, along with future change orders, will be contained within the
continency fund without increasing the overall budget.
ALIGNMENT WITH STRATEGIC PRIORITIES:
Page 12 of 15
ving 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:
CI
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.
Continue to update the project webpage showcasing construction progress with all
interested community residents.
CONCLUSION:
Staff recommend that, allocation of $67,749.89 plus HST of the Terrace Lodge
Contingency allowance be used for the extension of wall partitions to the underside of
the roof to meet the OBC. Staff will continue to provide the Steering Committee and
Council with updates as the project progresses through its second and third phase.
All of which is Respectfully Submitted
Ryan Terpstra
Manager of Corporate Facilities
Michele Harris
Director of Homes and Seniors Services
Approved for Submission
Don Shropshire
Chief Administrative Officer/Clerk
Page 13 of 15
Phase 2 North Wing after demolition exterior walls
Courtyard concrete being poured
Page 14 of 15
Phase 2 North wing after asbestos abatement
North wing spray applied insulation being installed
Page 15 of 15