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03 - August 28, 2024 Terrace Lodge Redevelopment Steering Committee Agenda PackageElginCounty Terrace Lodge Redevelopment Steering Committee Orders of the Day Wednesday, August 28, 2024, 3:00 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 Director of Financial Services/Treasurer - Terrace Lodge Redevelopment 6 - Construction Costs Update Aug. 20, 2024 6.2 Manager of Corporate Facilities and Director of Homes and Seniors 9 Services - Terrace Lodge Redevelopment — August 2024 Project Update and Family Suite HVAC 6.3 Manager of Corporate Facilities - Terrace Lodge Redevelopment — 13 Phase 3 Kitchen Servery Cooling 7. Other Business 8. Correspondence 9. Closed Meeting Items 9.1 Closed Meeting Minutes - June 25, 2024 10. Motion to Rise and Report 11. Date of Next Meeting 12. Adjournment uoi Terrace Lodge Redevelopment Steering Committee Minutes June 25, 2024, 12:30 p.m. Council Chambers 450 Sunset Drive St. Thomas ON 81=11 T �__ - �JFTLi•Cai1x•1121=i1✓:1•'F1= 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 Nicholas Loeb, Director of Legal Services Katherine Thompson, Manager of Administrative Services/Deputy Clerk Ryan Terpstra, Manager of Corporate Facilities Jenna Fentie, Legislative Services Coordinator Call to Order The meeting was called to order at 12.35 p.m. with Warden Ketchabaw in the chair. 2. Approval of Agenda Moved by: Councillor Noble Seconded by: Councillor Widner RESOLVED THAT the agenda for the June 25, 2024 meeting of the Terrace Lodge Redevelopment Steering Committee be approved as presented. Motion Carried. 3. Adoption of Minutes Page 2 of 15 Moved by: Councillor Couckuyt Seconded by: Councillor Noble RESOLVED THAT the minutes of the March 26, 2024 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 Manager of Corporate Facilities and Director of Homes and Seniors Services - Terrace Lodge Redevelopment — June 2024 Project Update and Temperature and Humidity Concerns The Manager of Corporate Facilities and the Director of Homes and Seniors Services presented the report that provides an update on the status of the Terrace Lodge Redevelopment project in relation to Phase Two (2) and Phase Three (3) of the project. Moved by: Councillor Noble Seconded by: Councillor Couckuyt RESOLVED 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. Motion Carried. 6.2 Director of Financial Services/Treasurer - Terrace Lodge Redevelopment - Construction Costs Update June 25, 2024 The Director of Financial Services/Treasurer presented the report that provides the Committee with an update on costs incurred to date related to the Terrace Lodge Redevelopment Project and contingency fund. Moved by: Councillor Widner Seconded by: Councillor Noble RESOLVED 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. 2 Page 3 of 15 Motion Carried. 7. Other Business None. 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 - LS 24-9 Construction Issue (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. Motion Carried. 9.1 Director of Legal Services - LS 24-9 Construction Issue 10. Motion to Rise and Report Moved by: Councillor Couckuyt Seconded by: Councillor Noble RESOLVED THAT we do now rise and report. Motion Carried. Closed Meeting Item #1 - LS 24-9 Construction Issue Moved by: Councillor Widner Seconded by: Councillor Noble RESOLVED THAT the Director of Legal Services proceed as directed. Motion Carried. 11. Date of Next Meeting 3 Page 4 of 15 The next Terrace Lodge Redevelopment Steering Committee meeting will be held at the call of the Chair. 12. Adjournment Moved by: Councillor Widner Seconded by: Councillor Couckuyt RESOLVED THAT we do now adjourn at 1.26 p.m. to meet again at the call of the Chair. Motion Carried. Blaine Parkin, Chief Administrative Officer/Clerk. Warden Ed Ketchabaw, Chair. 0 Page 5 of 15 ElginCounty Report to Terrace Lodge Redevelopment Steering Committee From: Jennifer Ford, Director of Financial Services/Treasurer Date: August 20, 2024 Subject: Terrace Lodge Redevelopment - Construction Costs Update Aug. 20, 2024 Recommendation(s): THAT the report titled "Terrace Lodge Redevelopment — Construction Costs Update", dated August 20, 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 related to the existing budget. Background and Discussion: The Committee last received a financial update to June 17, 2024. This report provides updated financial details relative to the project budget to actuals to August 20, 2024. Financial Implications: As of August 20, 2024, paid invoices result in the following budget to actual comparison: B; R . ConstrLICtioll 20,646,463 2'6,481,112' 4,166,341 Ccl'7sultingl SONiCes 3,363,9,64 3,188,80,0 175,066 Technology 686,000 2,67,59,8 317,402 FUrnitUre &. Fi:.tUres 067,476 636,606 330,969, Misc" 460,83�2 2',16,600 263,332 HST (1.76%) 612,176 524,315 87,86,1 Subtotal 36,644,000 30,314, 20 6,3�29,071 Page 6 of 15 Construction: Construction invoices from D. Grant are included in this report up to end of July 31, 2024 in the above outlined budget details. The cost of construction indicates that the construction timeline sits at approximately 87% complete. D. Grant indicates that they do not expect that this project will go over the allotted budget. The July invoice shows that there were 211 change orders allotted to the contingency budget at that time. The most up to date contingency budget numbers for this project are provided in the financial section of the report provided by Engineering who are keeping track of these changes on a daily basis to ensure completion and compliance. Consulting Services: MMMC, Gail Kaufman Carlin and Forth Rail are the consultants working with staff on this project. Other: Technology, Furniture/Fixtures, and Misc items are related to outside costs not covered by the direct construction of the facility. As construction continues, it is expected that these budgets will be further utilized as we incur additional costs before the final 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 regard to our intent to borrow an additional $24M. Since our last report, the 25 year borrowing rate has dropped from 4.69% to 4.41 %. It is anticipated that the recent reports of the CPI dipping to 2.5% will encourage the Bank of Canada to continue to lower borrowing rates significantly more by our target timeline of 2025. Alignment with Strategic Priorities: Page 7 of 15 Serving Elgin Growing Elgin Investing in Elgin ❑ Ensuring alignment of ❑ Planning for and ❑ Ensuring we have the current programs and facilitating commercial, necessary tools, resources, services with community industrial, residential, and and infrastructure to deliver need. 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 Im 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 Approved for Submission Blaine Parkin Chief Administrative Officer/Clerk Page 8 of 15 ElginCounty Report to Terrace Lodge Redevelopment Steering Committee From: Ryan Terpstra, Manager of Corporate Facilities Michele Harris, Director of Homes, and Seniors Services Date: August 20, 2024 Subject: Terrace Lodge Redevelopment — August 2024 Project Update and Family Suite HVAC Recommendation(s): THAT the report titled "Terrace Lodge Redevelopment — August 2024 Project Update and Family Suite HVAC" from the Manager of Corporate Facilities dated August 20, 2024 be received and filed; and THAT the Proposed change order 229 Family Room HVAC Coordination at a costing of $62,901.78 be approved; and, THAT the Proposed change order 243 Family Suite Architectural Modifications at a costing of $36,997.21 be approved; and, THAT the remaining $40,000 for patient lifts that was awarded to Arjo at a costing of $164,300 be allocated to the phase 3 moisture mitigation allowance. 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 3 of the project, and to seek support to proceed with proposed change orders 229 and 243 totalling $99,898.99. Page 9 of 15 Background and Discussion: Phase three (3) of the three phase Terrace Lodge Redevelopment project is currently under way. Phase three involves the renovation of areas within the existing first floor and basement core area, along with the renovation of the existing south resident home areas (RHAs) which will mirror the phase 2 north resident home area renovations. Currently, D. Grant, the County's contractor for the Terrace Lodge Redevelopment project, has completed the transformation of the existing chapel into a gift shop, abatement of the ACM (asbestos containing material) of the existing south RHA to its shell. D. Grant is currently working on drywall and exterior finishings of the first floor of the south RHA and is continuing work on the main kitchen renovation. The working conditions in the phase 2 RHA home kitchens have improved with the installation of the split unit air conditioning. Elgin County continues to wait for costing for the installation of air conditioners in the phase 3 RHA kitchens. As previously communicated to the steering committee, temperature and humidity readings throughout the home continue to be a concern. County staff continue to work with MMMC Architects (the County's architect), Smith and Anderson (S&A) (electrical and mechanical engineering) and JLL County's independent commissioning consultant to ensure the building is constructed as designed. On August 14t", 2024, S&A, JLL and County staff conducted an audit of all systems to derive the root cause of the temperature and humidity concerns. Ther findings are- 1 . Room thermostat temperature discrepancies, on average thermostats were reading 2°C cooler than actual making room feel warmer. 2. Room thermostats on average were reading 10% higher humidity than the 2 handheld devices, brought to site. 3. The chiller that feeds cold water to the VFC's (vertical fan coils) turns on when the return water temperature reaches 12.7°C and shuts off cooling when water reaches 6.4°C. The average water temperature would be around 10°C. S&A believes that water at this temperature would not allow enough water to sweat off from the condensate coil. S&A are currently working with HTS (Supplier of chiller) for solution. 4. There is no vapour barrier between construction openings and RHA, this would allow humidity to enter the facility, which would be resolved upon completion of construction. The County will continue to monitor the temperature and humidity closely to ensure these building systems operate as designed. During the time of tender the as -built drawings provided to MMC showed ductwork going to the family suite area, however during a site review earlier this year it was found that the duct work did not exist. Without this duct work, the family suite area would require another means of providing heating, cooling and ventilation. Page 10 of 15 Proposed change order 229 includes repurposing of the split air conditioning units that were removed from the former upper and lower nursing stations and installing duct work throughout the family suite area and adding an HRV (heat recovery ventilator) unit for fresh air. County staff have inquired if more cost-effective solutions are available, and S&A believes that the proposed solution is the most cost effective as an additional roof top unit installed to service these areas would be more expensive. However, once ACM abatement is completed in the Family Suite area, an investigation will be completed to determine if an option exists to extend existing duct work to service these areas at a potentially lower cost. Staff will proceed with the lowest cost solution. The existing Malahide recreation area is being transformed into a resident physio, offices and a family room. These rooms are to be outfitted with an acoustic drop ceiling. The drop ceiling is to be anchored to the ceiling joists and this requires the existing ceiling to be removed. The demolition plans within the architectural drawings did not include the removal of this ceiling. The existing ceiling is noted in the June 2019 DSS (designated substance survey) as ACM (Asbestos Containing Material) which would require asbestos abatement. Proposed change order 243 includes the abatement removal of the ceiling, additional framing required to install the acoustic drop ceiling and to reinstate gypsum board, to meet Ontario Building Code. During the tendering process, allowances were created for individual pieces of the project. The project allowance for the moisture mitigation flooring in the existing home was set to $67,675 for phases 2 and 3. If moisture content beneath the floor is too high it could cause the flooring to lift or sweat. To derive the most appropriate method of floor sealing, sampling for moisture was conducted. The results came back higher than expected. The cost to seal phase 2 was $41,787.50, leaving a remaining allowance of $25,887.50. It is expected that phase 3 would be roughly the same cost. This allowance would have a shortfall of $15,900. To fund this shortfall, it is recommended to reallocate the existing allowance of $204,300 for patient lifts. This contract was awarded to Arjo at a cost of $164,300 leaving a $40,000 surplus that can offset the floor sealing shortfall. Financial Implications: There have been 217 change orders approved to date during the redevelopment project that have totalled to $1,680,671.34, leaving $256,443.93 left in the construction contingency allowance. The new change orders (totaling $99,898.99) will reduce the remaining contingency allowance balance to $156,544.94. PC 229 Family Room HVAC Coordination $62,901.78 PC 243 Family Suite Architectural Modification $36,997.21 Total $99,898.99 Alignment with Strategic Priorities: Page 11 of 15 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: Staff will continue to update the project webpage showcasing construction progress. Conclusion: Staff recommend that proposed change orders 229 Family Room HVAC Coordination and 243 Family Suite Architectural Modifications be approved at a total cost of $99,898.99 plus hst. Staff also recommend that the remaining $40,000 for patient lifts from the Terrace Lodge Redevelopment Project that was awarded to Arjo at a costing of $164,300 be allocated to the phase 3 moisture mitigation allowance. Staff also recommend the report titled Terrace Lodge Redevelopment — August 2024 Project Update and Family Suite HVAC report be received and filed. 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 12 of 15 ElginCounty Report to Terrace Lodge Redevelopment Steering Committee From: Ryan Terpstra, Manager of Corporate Facilities Date: August 22, 2024 Subject: Terrace Lodge Redevelopment — Phase 3 Kitchen Servery Cooling" from the Manager of Corporate Facilities dated August 22, 2024 Recommendation(s): THAT the report titled "Terrace Lodge Redevelopment — Phase 3 Kitchen Servery Cooling" from the Manager of Corporate Facilities dated August 22, 2024 be received and filed; and THAT Phase 3 Servery Cooling for the RHA (Resident Home Area) kitchens be approved at a cost of $32,541.07 plus HST. Introduction: The purpose of this report is to seek permission from the Steering Committee to have split air conditioning units installed in Phase 3 upper and lower RHA kitchens as was completed in the Phase 2 RHA kitchens. Background and Discussion: On June 25, 2024, a report titled Terrace Lodge Redevelopment - June 2024 Project Update, Servery Drain Update, Humidity Concerns within Home Kitchen discussed the discomfort of dietary staff working within the north RHA kitchen areas. These kitchen areas were designed with a commercial dishwasher and other kitchen appliances. The residual heat from this equipment created 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 in the initial design. County staff had coordinated the installation of a split air conditioning units for Phase 2, through its contracted HVAC and electrical contractors to address these concerns. The cost to install the split air conditioning unit for Phase 2 was approximately $20K. However, because their installation was after occupancy, condensate lines and Page 13 of 15 electrical feeds had to be surface mounted to the exterior of the building, which is not ideal. County staff requested quotation from D. Grant (contractor for Terrace Lodge Redevelopment Project) to have split unit air conditioning units installed in RHA's kitchens during the Phase 3 construction. This solution will have all electrical feeds and condensation lines routed and installed through interior walls, resulting in a better and neater installation. Financial Implications: Cost to install cooling for Phase 3 RHA home kitchen areas is $32,541.07 plus HST, D. Grant believes that there is sufficient budget to complete project. As a result of the expenditures recommended in the Family Suite HVAC report ($99,898.99), and subtracting these costs for the Servery Cooling ($32,541.07), a contingency allowance balance of $124,003.87 exists. 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 Im None Communication Requirements: Conclusion: Staff recommends that the report titled "Terrace Lodge Redevelopment — Phase 3 Kitchen Servery Cooling" from the Manager of Corporate Facilities dated August 22, Page 14 of 15 2024 be received and filed. Staff seeks approval for the installation of Phase 3 cooling in the RHA kitchens as was completed in the Phase 2 RHA kitchens. All of which is Respectfully Submitted Ryan Terpstra Manager of Corporate Facilities Approved for Submission Blaine Parkin Chief Administrative Officer/Clerk Page 15 of 15