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02 - June 25, 2024 Terrace Lodge Redevelopment Steering Committee Agenda PackageOZ5 ElgmCounty Terrace Lodge Redevelopment Steering Committee Orders of the Day Tuesday, June 25, 2024, 12:30 p.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. Pages 1. Call to Order 2. Approval of Agenda 3. Adoption of Minutes 2 4. Disclosure of Pecuniary Interest and the General Nature Thereof 5. Delegations 6. Reports/Briefings 6.1 Manager of Corporate Facilities and Director of Homes and Seniors 5 Services - Terrace Lodge Redevelopment — June 2024 Project Update and Temperature and Humidity Concerns 6.2 Director of Financial Services/Treasurer - Terrace Lodge Redevelopment 9 - Construction Costs Update June 25, 2024 7. Other Business 8. Correspondence 9. Closed Meeting Items 9.1 Director of Legal Services - LS 24-9 Construction Issue Municipal Act Section 239(2) (e) litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board; and (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 Terrace Lodge Redevelopment Steering Committee Minutes March 26, 2024, 11:00 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: Blaine Parkin, 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 Katherine Thompson, Manager of Administrative Services/Deputy Clerk Ryan Terpstra, Manager of Corporate Facilities Jenna Fentie, Legislative Services Coordinator Stefanie Heide, Legislative Services Coordinator 1. Call to Order The meeting was called to order at 11.00 a.m. with Warden Ketchabaw in the chair. 2. Approval of Agenda Moved by: Councillor Couckuyt Seconded by: Councillor Widner RESOLVED THAT the agenda for the March 26, 2024 meeting of the Terrace Lodge Redevelopment Steering Committee be approved as presented. Motion Carried. 3. Adoption of Minutes 1 Page 2 of 11 Moved by: Councillor Noble Seconded by: Councillor Couckuyt RESOLVED THAT the minutes of the October 10, 2023 Terrace Lodge Redevelopment Steering Committee meeting 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 March 18, 2024 The Director of Financial Services/Treasurer presented the report detailing the costs incurred to date related to the Terrace Lodge Redevelopment project and contingency fund. Moved by: Councillor Couckuyt Seconded by: Councillor Noble RESOLVED THAT the report titled, "Terrace Lodge Redevelopment — Construction Costs Update March 18, 2024", dated March 26, 2024 be received and filed. Motion Carried. 6.2 Manager of Corporate Facilities and Director of Homes and Seniors Services - Terrace Lodge Redevelopment - 2024 Project Update, Servery Drains, and Additional Asbestos Containing Material (ACM) Abatement The Manager of Corporate Facilities and the Director of Homes and Seniors Services presented a report that provides an update on the status of the Terrace Lodge redevelopment project in relation to Phase 2 and Phase 3 of the project, and also seeks the Committee's approval of the proposed Phase 3 Asbestos Containing Material Abatement work. Moved by: Councillor Noble Seconded by: Councillor Widner RESOLVED 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; 2 Page 3 of 11 7 0 9 11. 12. and THAT the Terrace Lodge Redevelopment Steering Committee authorize approval of the proposed Phase three (3) Asbestos Containing Material Abatement work. Motion Carried. Other Business None. Correspondence None. Closed Meeting Items None. Motion to Rise and Report None. Date of Next Meeting The next Terrace Lodge Redevelopment Steering Committee meeting will be held at the call of the Chair. Adjournment Moved by: Councillor Couckuyt Seconded by: Councillor Widner RESOLVED THAT we do now adjourn at 11:15 a.m. to meet again at the call of the Chair. Motion Carried. Blaine Parkin, Chief Administrative Officer/Clerk. Warden Ed Ketchabaw, Chair. 3 Page 4 of 11 ElginCounty Report to Terrace Lodge Redevelopment Steering Committee From: Ryan Terpstra, Manager of Corporate Facilities Michele Harris, Director of Homes and Seniors Services Date: June 25, 2024 Subject: Terrace Lodge Redevelopment — June 2024 Project Update and Temperature and Humidity Concerns Recommendation(s): THAT the report titled "Terrace Lodge Redevelopment — June 2024 Project Update and Temperature and Humidity Concerns" from the Manager of Corporate Facilities and the Director of Homes and Seniors Services dated June 25, 2024 be received and filed. 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 Two (2) and Phase Three (3) of the project. Background and Discussion: On May 15, 2024, 18 residents moved into the Phase Two (2), newly renovated, two- story north resident home areas. Move day was supported by volunteers, resident family members, Terrace Lodge staff, and staff from across the County to ensure residents received a smooth and welcoming transition to their new room and space. These areas are equipped with spacious home kitchens, serveries, dining rooms, program/therapy rooms, courtyard areas, enhancing the comforts of home for our residents and the work environment for our dedicated staff. Page 5 of 11 Phase Three (3) of the three phase Terrace Lodge Redevelopment project is currently under way. Phase Three (3) involves renovation of areas within the existing first floor and basement core area, along with renovation of the existing south resident home areas (RHAs) which will mirror the Phase Two (2) north resident home area renovations. At this time, D. Grant, the County's contractor for the Terrace Lodge Redevelopment project, is continuing work on the main kitchen renovation, removing the ACM (asbestos containing material) and clearing the existing south RHA to its shell. D. Grant is transforming the existing chapel into a gift shop and increasing the size and amount of change rooms in the pool area. Since occupancy, and especially during the recent increase in seasonal temperatures, dietary staff have been uncomfortable working within the north RHA home kitchen areas. These kitchen areas are equipped with a commercial dishwasher and other kitchen appliances. The residual heat from this equipment is creating excessive humidity and temperature concerns. The Home kitchens are approximately 150 sq. Ft. in size and are equipped with a 350- cfm exhaust fan. There were no provisions made for fresh air, cooling, or diffusers allowing air from adjacent rooms. Staff are tracking both humidity and temperature to device the humidex. To provide staff comfort while present/working in the Home kitchens, the following temporary measures have been implemented: • doors are propped open and fans in place when staff in the area; • staff are not utilizing the dishwasher in the resident home area kitchen; • staff are taking the meal service dishes to the main kitchen for cleaning; and/or, • staff are utilizing disposables for meal service when the humidex reading exceeds 45 degrees Despite these temporary measures humidex readings remain high with the current seasonal temperatures and staff are being provided with heat breaks when the humidex readings are above 45 degrees. Staff are recommending that split unit air conditioners be installed for levels 1 and 2 in both the north (Phase Two (2)) and the south wings (Phase Three (3)) to alleviate the heat/humidity in these areas. The County is having both D. Grant, and its contracted HVAC and electrical contractors quote this work. Phase Two (2) work is estimated at approximately $20K. As previously communicated to the Steering Committee, humidity readings throughout the Home continue to be high, as we positively pressurize the building from the exhausted air from resident washrooms. The design intent is for the AHU (air handling units) is to supply fresh air. These units are programmed to Ministry standard to maintain between 22 to 26 degrees Celsius. The AHU unit has been bringing in Page 6 of 11 unconditioned high humidity air creating discomfort with the current seasonal temperatures and humidity. County staff continue to engage with MMMC Architects, the County's architect, for answers and have been assured that once Phase Three (3) comes online the chiller will be at capacity and will remove all the humidity. Financial Implications: There have been 198 change orders approved to date during the redevelopment project that have totalled to $1,568,324. Alignment with Strategic Priorities: Serving Elgin Growing Elgin Investing in Elgin ® Ensuring alignment of ❑ Planning for and ® Ensuring we have the current programs and facilitating commercial, necessary tools, services with community industrial, residential, and resources, and need. agricultural growth. infrastructure to deliver programs and services ® Exploring different ways ® Fostering a healthy now and in the future. of addressing community environment. need. ® Delivering mandated ® Enhancing quality of programs and services ® Engaging with our place. efficiently and effectively. community and other stakeholders. Local Municipal Partner Impact: �m Communication Requirements: Continue to update the project webpage showcasing construction progress with all interested community residents. Conclusion: Staff recommend that the report titled Terrace Lodge Redevelopment — June 2024 Project Update and Temperature and Humidity Concerns report be received and filed. County staff will continue to seek a resolution to the humidity concerns throughout the Home and have air conditioning installed in all four Home resident kitchen areas (Phase 2 and 3) to support staff and resident comfort. Page 7 of 11 All of which is Respectfully Submitted Ryan Terpstra Manager of Corporate Facilities Michele Harris Director of Homes and Seniors Services Approved for Submission Blaine Parkin Chief Administrative Officer/Clerk Page 8 of 11 ElginCounty 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: June 17, 2024 Subject: Terrace Lodge Redevelopment - Construction Costs Update June 25, 2024 Recommendation: THAT the report titled "Terrace Lodge Redevelopment — Construction Costs Update June 25, 2024" from the Director of Financial Services/Treasurer, Director of Homes and Seniors Services, and Manager of Corporate Facilities 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 March of 2024. We have now entered into Phase Three (3) of the project, and staff wish to report on progress as well as share some items that have been identified for consideration. This report provides updated financial details relative to the project budget to actuals. Financial Implications: As of June 17, 2024, paid invoices result in the following budget to actual comparison: TL Rebuild Summary Budget Actual Remainder As at June 17, 2024 Construction 29,646,453 24,287,306 5,359,147 Consulting Seances 3,363,964 3,176,682 187,283 Technology 585,000 267,598 317,402 Furniture & Fixtures 967,475 623,555 343,920 Misc** 469,832 216,500 253,332 HST(1.76%) 612,176 502,861 109,315 Subtotal 35,644,900 29,074,501 6,570,400 Page 9 of 11 Construction: Construction invoices from D. Grant are included in this report up to end of April 30, 2024 in the above outlined budget details. The cost of construction indicates that the total construction timeline sits at approximately 83% complete. D. Grant indicates that they do not expect that this project will go over the allotted budget. As previously reported, the allowance for D.Grant's Construction Managers Contract Fee within the above construction budget is now exhausted. This amount was set at $983,820. Staff advise that the suggested unallocated budget line called Escalation Allowance (Non -Tendered) that is already part of the D. Grant contract should be utilized for this purpose. As per the last payment listing, this line item contained $128,783 and showed no spend. There will therefore be no additional cost to make this move within the scope of the existing contract. The rate of use that has been experienced for the Construction Managers Contract Fee indicates that this budget amount will be sufficient for another 5 months during Phase 3. The contingency budget accommodates change orders required throughout the project. The D. Grant invoice of April 30, 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. As a result, the contingency budget is reported to have approximately $361 K available to spend with $100K in unsigned or proposed change orders pending. This would leave us at an approximate contingency balance of $261 K. Consulting Services: At this time, MMMC, Gail Kaufman Carlin and Forth Rail are the consultants working with staff on this project. Staff are closely monitoring the consulting services for opportunities to reduce costs in this area as we near the end of the project to ensure that we do not go over expected budget in this area. Other: Technology, Furniture/Fixtures, Misc are related to outside costs not covered by the Construction of the facility. As construction ends on Phase 2, it is expected that these budgets will be further utilized as we incur additional costs before move in date. This will ensure that the facility is outfitted with the necessary equipment for residents and staff before move in date. Financing: To date, the County has taken out $1 M 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 4.72% to 4.69. It is our expectation that interest rates will continue to decrease and, that we will be able to secure the loan in 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 invest funds as a result. Page 10 of 11 Alignment with Strategic Priorities: Serving Elgin Growing Elgin Investing in Elgin ❑ Ensuring alignment of ❑ Planning for and ® Ensuring we have the current programs and facilitating commercial, necessary tools, services with community industrial, residential, and resources, and need. agricultural growth. infrastructure to deliver programs and services ❑ Exploring different ways ❑ Fostering a healthy now and in the future. of addressing community environment. need. ® Delivering mandated ® Enhancing quality of programs and services ❑ Engaging with our place. efficiently and effectively. community and other stakeholders. Local Municipal Partner Impact: None. Communication Requirements: None. Conclusion: This report is provided for the Committee's information relative to the existing financial status of the project. All of which is Respectfully Submitted Jennifer Ford Director of Financial Services/Treasurer Michele Harris Director of Homes and Senior Services Ryan Terpstra Manager of Corporate Facilities Approved for Submission Blaine Parkin Chief Administrative Officer/Clerk Page 11 of 11