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:
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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
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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