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01 - March 26, 2024 Terrace Lodge Redevelopment Steering Committee Agenda Package Terrace Lodge Redevelopment Steering Committee Minutes October 10, 2023, 8:00 a.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 Peter Dutchak, Director of Engineering Services Michele Harris, Director of Homes and Seniors Services Jennifer Ford, Director of Financial Services/Treasurer Jenna Fentie, Manager of Administrative Services/Deputy Clerk Ryan Terpstra, Manager of Corporate Facilities Stefanie Heide, Legislative Services Coordinator _____________________________________________________________________ 1. CALL TO ORDER The meeting was called to order at 8:00 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 October 10, 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 1 RESOLVED THAT the minutes of the meeting held on August 1, 2023 be adopted. Motion Carried. 4. DISCLOSURE OF PECUNIARY INTEREST AND THE GENERAL NATURE THEREOF None. 5. DELEGATIONS None. 6. REPORTS/BRIEFINGS 6.1 Director of Financial Services/Treasurer - Terrace Lodge Redevelopment Construction Costs Update The Director of Financial Services/Treasurer presented the report that provides the Committee with a progress update on the costs incurred to date related to the Terrace Lodge Redevelopment Project. Moved by: Councillor Couckuyt Seconded by: Councillor Widner RESOLVED THAT the report titled "Terrace Lodge Redevelopment Construction Costs Update" dated October 2, 2023 from the Director of Financial Services/Treasurer be received and filed. Motion Carried. 6.2 Manager of Corporate Facilities and Director of Homes and Seniors Services - Terrace Lodge Redevelopment 2023 Project Update/Wall Partition Change Order The Manager of Corporate Facilities presented the report that provides an update on the status of the Terrace Lodge Redevelopment Project progress achieved in 2023. Moved by: Councillor Couckuyt Seconded by: Councillor Noble RESOLVED THAT the report titled "Terrace Lodge Redevelopment - 2023 Project Update/Wall Partition Change Order" dated September 29, 2023 from the Manager of Corporate Facilities and the Director of Homes and Seniors Services be received and filed; and 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. 2 Motion Carried. 7. OTHER BUSINESS None. 8. CORRESPONDENCE None. 9. CLOSED MEETING ITEMS None. 10. MOTION TO RISE AND REPORT None. 11. DATE OF NEXT MEETING The Terrace Lodge Redevelopment Steering Committee will meet again at the call of the Chair. 12. ADJOURNMENT Moved by: Councillor Noble Seconded by: Councillor Couckuyt RESOLVED THAT we do now adjourn at 8:13 a.m. to meet again at the call of the Chair. Motion Carried. Blaine Parkin, Warden Ed Ketchabaw, Chief Administrative Officer/Clerk. Chair. 3 Report to Terrace Lodge Redevelopment Steering Committee From: Jennifer Ford, Director of Financial Services/Treasurer Michele Harris, Director of Homes and Senior Services Ryan Terpstra, Manager of Corporate Facilities Date: March 26, 2024 Subject: Terrace Lodge Redvelopment Construction Costs Update March 18, 2024 Recommendation(s): THAT the report titled Construction Costs Update 26, 2024 be received and filed. Introduction: The purpose of this report is to provide the Terrace Lodge Steering Committee with an update on costs incurred to date related to the Terrace Lodge Redevelopment project and contingency fund. Background and Discussion: The Committee last received a financial update in early October 2023. As we near the end of Phase 2 and enter into Phase 3, some additional items have been identified for consideration. This report provides updated financial details relative to the project budget to actuals. Financial Implications: As of March 18, 2024, paid invoices result in the following budget to actual comparison: Budget Actual Remainder TL Rebuild Summary As at March 18, 2024 Construction 29,646,453 23,420,502 6,225,951 Consulting Services 3,363,964 3,088,498 275,466 Technology 585,000 267,314 317,686 Furniture & Fixtures 967,475 528,409 439,066 Misc** 469,832 205,936 263,896 HST (1.76%) 612,176 484,188 127,988 Subtotal 35,644,900 27,994,846 7,650,055 Construction: Construction invoices from D. Grant are included up to Jan 31, 2024 in the above outlined budget details the cost of construction indicates that the total construction timeline sits at approximately 79.68% complete. At a recent site meeting, D. Grant indicated that the allowance for their Construction Managers Contract Fee within the above construction budget will be shortly exhausted. This amount was set at $983,820. The recent budget shows that approximately $25,745 remains on this line item to be spent. Staff note that the cost of their construction fee has recently been approximately $25K per month. D. Grant suggested that the unallocated budget line called Escalation Allowance (Non- Tendered) could be utilized for this purpose. On the Jan 31, 2024 invoice from D. Grant, budget on the suggested line item contained $128,783 and showed no spend. Given the rate of anticipated use, it is expected that this line item could be exhausted within 5 months or by July of 2024. This date is before the end of construction for Phase 3 which is now within the scope of early 2025. Staff are currently working with the contractor and consultants to further understand the requirements for the final Phase relative to this Manager Fees and if expected use will continue at the same rate. Staff will provide further information relative to options for funding at a future meeting as is necessary. The contingency budget accommodates change orders required throughout the project. The D. Grant invoice of Jan 31, 2024 is not the most up to date list. As the change orders come in, our Engineering department is keeping track of them on a daily basis. An exerpt of this list is shown below. As a result, the contingency budget is reported to have approximately $405,706 available to spend as of this report with approximately $50,000 pending for additional moisture mitigation and roof repair. PCN # Title CCO # Value 195 Basement Staff Remedial Work 183 $ 9,835.06 214 Phase 2 Level 2 home kitchen draingage (drain and access to steam table) 184 $ 9,960.80 213 Phase 2 Level 2 home kitchen dishwasher draingage (floor drain) 185 $ 4,672.28 206 Supply and install ACT ceiling in C138 (dry storage) $ 2,633.94 208 Additional abatement (core, washroom, pool chageroom, and elevator room) $ 24,542.85 209 Install water supply line and drainage phase 2 linen chute. Waiting on email response $ 8,642.20 212 Power data drops for servery (phase 2 and phase 3) $ 4,558.49 215 Soiled chute room ceiling painting and pipe wrap $ 2,657.23 216 ACT deletion in soiled chute rooms $ (832.00) 217 Phase 2 Level 1 home kitchen draingage (drain and access to steam table) Tbd. Change Order Totals $ 1,531,408.47 Contingency Cash Allowance $ 1,937,115.27 Remaining Cash Allowance Totals $ 405,706.80 ConsultingServices: At this time, MMMC, Gail Kaufman-Carlyn and ForthRail are the consultants working with staff on this project. Staff are reviewing ways to reduce costs in this area as we near the end of the project and ensure that we do not go over the expected budget. Other: Technology, Furniture/Fixtures, Misc are related to outside costs not covered by the Construction of the facility. These budgets ensure that the facility is outfitted with the necessary equipment for residents and staff before the move in date. As construction ends on Phase 2 and move in day approaches, these budgets will be further utilized as we incur additional costs to be ready for residents to move into Phase 2. Financing: To date, the County has taken out $1M on our loan with Infrastructure Ontario in order to secure our position with them regarding our intent to borrow an additional $24M. Since our last report, the rate has dropped from 5.09% to 4.72% which will save the County approximately $1.6M in interest over the life of the loan. It is our expectation that interest rates will continue to decrease and, that we will be able to secure the loan later in 2024 or early 2025 at a lower rate than today which is important as we will not be able to renegotiate the loan once secured. Until then, we relinquish some opportunity to gain interest through the investment of spent funds as a result. Alignment with Strategic Priorities: Serving Elgin Growing Elgin Investing in Elgin Ensuring alignment of Ensuring we have the Planning for and current programs and necessary tools, facilitating commercial, services with community resources, and industrial, residential, and need. infrastructure to deliver agricultural growth. programs and services now and in the future. Exploring different ways Fostering a healthy of addressing community environment. Delivering mandated need. programs and services Enhancing quality of efficiently and effectively. Engaging with our place. community and other stakeholders. Local Municipal Partner Impact: None. Communication Requirements: None. Conclusion: status of the project. All of which is Respectfully Submitted Approved for Submission Jennifer Ford Blaine Parkin Director of Financial Services/Treasurer Chief Administrative Officer/Clerk Michele Harris Director of Homes and Senior Services Ryan Terpstra Manager of Corporate Facilities Report to Terrace Lodge Redevelopment Steering Committee From: Ryan Terpstra, Manager of Corporate Facilities Michele Harris, Director of Homes and Seniors Services Date: March 26, 2024 Subject: Terrace Lodge Redevelopment - 2024 Project Update, Servery Drains, and Additional Asbestos Containing Material (ACM) Abatement Recommendation(s): THAT the March 26, 2024, report titled, Terrace Lodge Redevelopment - 2024 Project Update, Servery Drains, and Additional Asbestos Containing Material (ACM) abatement be received and filed; and THAT, the Terrace Lodge Redevelopment Steering Committee authorize approval of the proposed Phase three (3) Asbestos Containing Material Abatement work. 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 in relation to Phase 2 and Phase 3 of the project. Background and Discussion: th May 29, 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 of Long-Term Care Paul Calandra, MPP Rob Flack, Warden Ed Ketchabaw and members of 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. project, is working through phase 2 deficiencies prior to the Ministry of Long-Term Care (MLTC) pre-occupancy inspection. While staff were conducting the MLTC thirty (30) day -occupancy self-assessment did not include floor drains and indirect drains for the hot and cold servery tables. These drains are essential for food service operation and were included on the Kaizen Foodservice planning and Design Inc. drawings but were not included in the mechanical drawings. Floor drains were also not included in the attached Home Kitchens in case of overflow in the dishwashing/dishwasher areas. MMM Lodge Redevelopment project, outsourced the kitchen design to Kaizen and outsourced the electrical and mechanical drawings to a subcontracted service provider. During the design process these drains were not included on the mechanical drawings, and therefore did not form part of the contract. To have these drains installed now, the County will be utilizing the contingency cost allowance which continues to become depleted. The County has attempted to seek clarity as to why these drains were not included; however, an explanation has not been provided to date. The installation of these drains must occur at this time to not delay the project and phase 2 occupancy. Staff will continu The 2008 Englobe designated substance survey (DSS) report that was provided during time of tender for the Terrace Lodge redevelopment project identified that the existing buildings constructed in this era. The redevelopment project must therefore incorporate the remedial measures necessary to accommodate existing ACM. During the alteration of the existing staff changeroom, located in the basement of the core building, the Ministry of Labour (MOL) attended the project to review processes in respect to the handling of ACM. This area was originally intended to be an alteration, however, because exposed drywall edges were left non-encapsulated, the MOL ordered abatement of the entire area, requiring all drywall to be removed. Since this time, the County has revised its ACM policies, conducted further training for all staff working with the material and implemented check inspection sheets that are completed before and after work is done. From this experience, staff has reviewed the scope of work to be completed in Phase 3 following the O. Reg. 278/05, s .6(1) for work involving ACM. All work zones have been , where all is ACM is completely abated , where limited work will happen. During this process the contractor is required Regulations and require check inspections to be completed before and after the work is completed. The following table lists Phase 3 work areas, how ACM abatement is categorized and if the ACM abatement activity was originally included within the contract or if the abatement will result in a change order charge. Item Description of Work Categorized Included in # Contract 1 Kitchen and adjacent servery Demolition Yes 2 Chapel renovation (ceiling replacement, walls to remain) Alteration Yes 3 Core Family/washroom offices Alteration Yes 4 Office opening changes Alteration Yes 5 Health Clinic/Washroom/UTR, did not include exterior walls Alteration No 6 Elevator Machine Room large tank to be installed Demolition No 7 Basement Pool change room, did not include exterior walls Demolition No 8 Gift shop millwork millwork only Alteration Yes 9 Phase 3 South- interior full demolition Demolition Yes After reviewing the scope of work at each location and determining the required abatement activity to work with existing ACM, staff shared the plan with the MOL. The with prescribed regulation requirements, however they would not commit to approval since their role is limited to enforcing the OSHA and its prescribed regulations. D. Grant provided a quote in regards to the additional anticipated costs of Phase 3 ACM related work. Based on prior MOL inspection outcomes and communications, it is possible that additional costs could be incurred. Financial Implications: There have been 183 change orders approved to date during the redevelopment project that have totalled $1,485,038. within Phase 3 of the core of the existing building is $24,542.84. Also, of note, change orders as of February 26, 2024 from D. Grant have added a discla associated with schedule extension and reserve the right to do so at a subsequent anticipated to add an additional 6 weeks to the schedule alone. Staff has estimated that this schedule extension could add $37,500 as an extra charge to the project. Additionally, the total cost for adding water supplies and drains to the serveries/home kitchens in Phases 2 and 3 is $14,633.08 + tbd. + hst as detailed below: Cost of missed kitchen server drains Phase 2 level 1 steam table drains tbd. Phase 2 level 2 hot and cold table drain $ 9,960.80 + hst Phase 2 level 2 dishwasher floor drain $ 4,672.28 + hst Phase 3 levels 1 and 2 tbd. Total $ 14,633.08 + tbd. + hst. This total cost of $14,633 does not include potential additional schedule extension charges for overhead (estimated at $25,000 per month). These change orders, along with additional overhead charges, will potentially exhaust the current contingency allowance. Therefore, staff may be required to recommend additional project funds be allocated in the budget. Alignment with Strategic Priorities: Serving Elgin Growing Elgin Investing in Elgin Ensuring alignment of Ensuring we have the Planning for and current programs and necessary tools, facilitating commercial, services with community resources, and industrial, residential, and need. infrastructure to deliver agricultural growth. programs and services now and in the future. Exploring different ways Fostering a healthy of addressing community environment. Delivering mandated need. programs and services Enhancing quality of efficiently and effectively. Engaging with our place. community and other stakeholders. Local Municipal Partner Impact: None Communication Requirements: Continue to update the project webpage showcasing construction progress with all interested community residents. Conclusion: Staff recommend that the Phase 3 ACM abatement work cost is approved to support timely implementation of Phase 3 project work and to align with associated ACM Regulations. County staff will continue to monitor the contingency cost allowance budget and provide updates to the Terrace Lodge Redevelopment Steering Committee as we learn of further required updates/changes. All of which is Respectfully Submitted Approved for Submission Ryan Terpstra Blaine Parkin Manager of Corporate Facilities Chief Administrative Officer/Clerk Michele Harris Director of Homes and Seniors Services