01 - January 22, 2021 Terrace Lodge Redevelopment Steering Committee Agenda Package
TERRACE LODGE REDEVELOPMENT STEERINGCOMMITTEE
Minutes of Meeting
July 28, 2020at 1:00pm
The Terrace Lodge Redevelopment Steering Committee meeting was held on Tuesday,July28,
2020via WebEx.
Committee Members Present:Bob Purcell Elgin County Councilor/Chairman
Dave Mennill Elgin County Warden
Mary French Elgin County Councilor
Tom Marks Elgin County Councilor
Staff Members Present:Julie Gonyou Chief Administrative Officer
Jim Bundschuh Director of Financial Services
Michele Harris Director of Homes and Senior Services
Cole Aicken Building Science Technologist
Eugenio DiMeoCorporate Facilities Manager
Consultants Present:Allan Taylor Project Manager
Gail Kaufman Carlin Health & Senior Services Consultant
David Heintz MMMC Architects
Victoria Pilles MMMC Architects
Regrets:Brian Lima Director of Engineering Services
Steve Willis D. Grant
Darrell Gerrits D. Grant
Callto Order
Chairman Purcell called meeting to order at 1:00pm.
Discussion
1.Review of Minutes
rd
1.1.Steering Committee June 23MinutesNot yet available. Minutes to be
prepared byElginCounty and/or MMMC.Review deferredto next meeting.
2.Schedule
2.1.Issued for Bid DocumentsBid documents to be released after 11 August 2020
Council decision about IP&C redesign items.Consultants to wait for decision
before proceeding with redesign.
2.2.Project Schedule16 June 2020 update further delayed by 1½months.
2.3.Start DateConstruction state date January2021 at earliest.Steering
Committee advised that spring 2021start date would beacceptable,ifconditions
are more favourable.D.Grant to decide whether winter or spring start.
3.Construction Manager
3.1.Class B Construction Budget Update D. Grant to provide costing for IP&C items
and related premium by4August 2020.
3.2.D. Grant toalsoprovide update on general bid environment and market changes.
4.Budget
4.1.Provincial Funding PolicyJim Bundschuh overviewof Funding Summary and
updates to Provincial Funding Policy. Revised budget is estimated to be
$33,015,650. Revised MLTC funding is estimated to be $17,590,000(contribution
increased by approximately $4M). Revised Elgin ratepayer funding is estimated
to be $15,425,650.Steering Committee requestedthat JB preparecomparison to
previous summary and circulate to all members.
4.2.NurseCall SystemBob Purcell, Dave Mennill, Mary French, and Tom Marks
supportupgrading existing Maxivox Nurse Call System to Austco IP Nurse Call
System for entire building($100,000).
4.3.Dining Room Operational Cost ReviewMMMC overview of design options for
dining space and Michele Harris overview of advantages and disadvantages of
each design, with regards tostaffing requirementsandresident qualityof life. MH
noted that current design would requireadditional staffingandincreased
operational costs, but redesignwould notrequire additional staffing or operational
costs.Gail Kaufman Carlin overview of resident needs for assistance and
supervision duringmeals. Jim Bundschuh overview of finances associated with
each design option. Scenario #1 (COVID-like pandemic every 30 years) would
provide cost savings of $68,951 and would payback after 11 years. Scenario #2
(COVID-like pandemic every 100 years) would provide cost savings of $49,628
and would payback after 15 years. Scenario #3, in which social distancing does
not remain a standard requirement for outbreak situations, would carry a cost
penalty of $17,645 per year.
5.Architectural IP&C
5.1.Staff Locker RoomBob Purcell, Dave Mennill, Mary French, and Tom Marks
supportadding138 half-height lockers for staffto design($10,000).
5.2.Dining CapacityBob Purcell and Dave Mennill not in favour of redesign to add
additional dining space ($750,000). Tom Marks in favour of redesign to add
additional dining space. Mary French recognizes benefits of larger dining area,
even in non-pandemic situations, and recommends Council have discussion
about redesign to add additional dining space. Steering Committee agreed to fully
endorse request for additional $435K (COVIDconstructioncleaning allowance,
nurse call system,staff lockers,oxygenstorage)to Council, and recommended
thatCounty staff make apresentationto allow Council to decide about increased
dining capacity(additional $750,000). MH and JB to prepare report and
presentation, including recommendation from staff.
6.Mechanical IP&C
6.1.OxygenBob Purcell, Dave Mennill, Mary French, and Tom Marks support
adding dedicated oxygen storage to the design, without increasing building
footprint($100,000).
6.2.Negative Pressure BedroomsBob Purcell, Dave Mennill, Mary French, and Tom
Marks supportupgradingVFC units to allowswitching tonegative pressure mode
(most cost-effective solution). MMMCto confirmwhether thiswill increase budget
based on D. Grant 4 August 2020 update.
7.Next Meetings
7.1.TBD, based on 11 August 2020 Council decision.
Adjournment
Moved by ??
Seconded by ??
-Carried
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REPORT TO TL REDEVELOPMENT
STEERING COMMITTEE
FROM:Jim Bundschuh,Director of Financial
Services
DATE:January 22,2021
SUBJECT: T/L Redevelopment Project Budget
RECOMMENDATION:
THAT the Terrace Lodge Redevelopment Steering Committee recommend a project
budget of $34,457,759 exclusive of HST; and,
THAT the CAO and Warden be authorized to sign an Acceptance of Cost Letter to D.
Grant; and,
THAT January 22, 2021 report, titled“T/L Redevelopment Project Budget”, submitted by
the Director of Financial Services, bereceived and filed for information.
INTRODUCTION:
The tenders were issued with separate and alternate prices to provide the Steering
Committee with options when considering the pricing versus the approved budget.
Recently announced provincial funding changes will provide the Committee with the
ability to recommend supplementing the current approved budget without increasing
taxes. In fact, a portion ofthe provincial funding can be used to fund the August 11,
2020 Council approved $1.2 million in COVID increases (COVID constructionpremium,
increased dining space,oxygen room, enhanced staff locker rooms).
DISCUSSION:
The tender bids have resulted in a preliminary Construction Manager cost of
$27,932,704 exclusive of separate price allowance and alternate prices. If all separate
price allowances and alternate prices were approved at a cost of $1,026,530, the total
Construction Manager costs would be $28,959,234.
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I
n addition to the Construction Manager costs, there are ancillary/soft coststotaling
$5,498,525and non-recoverable HST of $605,156. The major components of the
project costs include design, project management, as well as fixtures and equipment.
The total project cost estimate, including separate price allowances,alternate prices
and ancillary/soft costs exclusive of HST, is $34,457,759. The separate price
allowances and alternate prices of $1 million deserve a closer review to enable the
Steering Committee to make an informed decision on which components should be
included in the construction:
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Separate Prices
Separate Price #1 New Chapel Ceiling $88,805: Originally intended to be in the base
scope butwas revised to a Separate Price during design to address potential budget
overage. Note that actual prices are less than budget allowances.
Separate Price #2 Gift Shop including Millwork Display Shelving $77,850: Originally
intended to be in the base scope butwas revised to a Separate Price during design
to address potential budget overage. Note that actual prices are less than budget
allowances.
Separate Price #3 Pool Change Rm & Men’s WR Renovations $63,020: Originally
intended to be in the base scope butwas revised to a Separate Price during design
to address potential budget overage. Note that actual prices are less than budget
allowances.
Separate Price #4 Surface Moisture Barrier on Phase 1 Slab-On-Grade $81,125: D
Grant recommendation that is carried as a provisional cost, which will only be
incurred if the moisture content in the new Slab-On-Grade was too high at the time
when finished flooring needs to be installed, and the completion schedule would
otherwise be delayed.
Separate Price #5 Replacement of existing roof, parapet flashing and Entry Lobby
Skylight $400,000: Recommendation of Cion Coulter Roof Investigation Report.
Amount is a budget allowance with a firm price to follow after approval to proceed
with construction.
Separate Price #6 Johnson Controls Building Automation System Enterprise
Management Platform (JEM) $109,393: Johnson Controls Enterprise Management
(JEM) is a cloud-based enterprise building performance analytics and optimization
software solution that hosts a number applications that provides intelligent building
performance comparisons, and lifecycle management to support modern building
operations, asset performance management, tenancy, and work order management.
JEM which works with the County’s existing Metasys® Building Automation System
(BAS), provides a holistic view and insights at every space, with respect to
equipment operation, energy management, and asset performance starting from the
portfolio down to sub-spaces within a building. This highly flexible user-centric
solution which uses powerful analytics to identify real-time energy and equipment
anomalies andwill proactively notify the Home’s maintenance team member and
facility management staff of any energy and equipment-related problems 24/7;
affording proactive timely service interventions well in advance of system and
equipment failures, and ensure Ministry and local health unit compliance.
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Alternate Prices
Alternate Price #1: Unless a quote for a pre-fabricated handrail system (including
brackets) is received that results in a credit, when compared to the custom millwork
handrail (which includes brackets) in the base contract, this Alternate Price is not
recommended.
Alternate Price #2 Pre-finished Linear Metal Soffit on the underside of two existing
2nd floor Dining Rm balconies, and two new 2nd floor Lounge balconies $52,700:
This is recommended so the underside of the 2nd floor balconies match the
renovated North and South wing 2nd floor soffits at the underside of the sloped
metal roof.
Alternate Price #3 Cold Applied Mod Bit Membrane Roofing $47,175: This eliminates
the pervasive odor from hot applied asphalt, and is consistent with Elgin County
typical approach when installing flat roofs on occupied buildings.
Alternate Price #4 Bedroom Sheet FloorIntegral Flash Cove Base (Upper North &
South Wing both floors) $54,550: All but eliminates the potential for urine on floor to
soak into the drywall or concrete substrate, improving indoor air (reduces smells)
and extends service life of drywall and finished floor.
Mechanical Alternate Prices
Alternate Price #M1 Automated ‘Brain’ Digital Recirculating \[Tempered Hot Water
Mixing\] Valve$4,100:recommend pursuing this separate price, as this is the
premium expected and this device provides improved monitoring of domestic hot
water recirculation temperatures as well as reporting capabilities.
Alternate Price #M3 – JCIprice D2 $47,812: upgrade of the local controllers in the
existing building is recommended to be included so that legacy products are
removed from site.
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FINANCIAL IMPLICATIONS:
In December, the province confirmedchanges to the funding for LTC development. The
Construction Funding Subsidy per diem is increased to $21.28, providingthe equivalent
of$1.9 million in incremental funding. Additionally, the province has announced
development grant of up to $2,492,000. Given that the details of the grant are still
pending, staff are conservatively including only 40% of the grant in this analysis.
When the Construction Funding Subsidy per diem and 40%of the available
Development Grant are added to the Council approved budget, the funding available for
this project is $36,705,000. This total funding is $1.6 million in excess of the total
project cost inclusive of all separate price allowances,alternate pricesand non-
recoverable HST.Council could direct these excess funds to purposes it deems
appropriate, including other service enhancements or a tax reductionof up to 0.6%. It is
important to note that this is being achieved while including all the desired features of
the separate price and alternate price components.
In addition, since only 40%of the Development Grant maximum is included in this
analysis. Once the province announces the actual amount of the grant our project will
received, any amount over the 40% allocated in this report can be considered for other
purposes, including as a reserve for this project. Given the level of investment that
Elgin is committing to in this project, it is quite likely that well in excess of 40% of the
maximum grant amount will be obtained.
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ALIGNMENT WITH STRATEGIC PRIORITIES:
Serving ElginGrowing ElginInvesting in Elgin
Ensuring alignment of Planning for and Ensuring we have the
currentprograms and facilitating commercial, necessary tools,
services with community industrial, residential, resources, and
need.and agricultural growth. infrastructure to deliver
programs and services
now and in the future.
Exploring different Fostering a healthy
ways of addressing environment.
Delivering mandated
community need.
programs and services
Enhancing quality of
efficiently and
Engaging with our
place.
effectively.
community and other
stakeholders.
Additional Comments:
LOCAL MUNICIPAL PARTNER IMPACT:
Aylmer and Malahide will be kept abreast of the project developments.
COMMUNICATION REQUIREMENTS:
A campaign kick-off was held in December and sod turning will be held with the
province at a yet to be determined date. At this time staff and MMMC will work with the
ministry to obtain FEC approval by the Ministry of Long-Term Care.
CONCLUSION:
With the new funding levels approved by the province, the Steering Committee would
be able to recommend to County Council that the project budget be approved at
$34,457,759 exclusive of HST while providing Council with $1.6 million in unallocated
funds to be used for other purposes. It should be noted that these numbers are still
preliminary. D. Grant will walk in their final numbers into the meeting on January 22.
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Only 40% of the Development Grant maximum is included in this analysis. Once the
actual amount of the grant to be received is determined, any amount over the 40%
allocated in this report can be considered for other purposes, including as a reserve for
this project.
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t should be noted that the Steering Committee and Councilhaspreviously indicated
that we willintentionally approve the construction budget and the start of construction
prior to FEC approval by the Ministry of Long-Term Care.This will allow D. Grant to
mobilize on site the week of February 8, 2021. D. Grant will require a letter from the
County authorizing them to proceed.
All of which is Respectfully Submitted Approved for Submission
Julie Gonyou
Jim Bundschuh
Chief Administrative Officer
Director of Financial Services
January 27, 2021
D. Grant Construction Limited
Attn: StevenWillis, Senior Estimator
9887 Longwoods Rd
London, ON N6P 1P2
Re: Terrace Lodge Redevelopment 100 Bed LTC Acceptance of Costs to Perform the Work
Dear Mr. Willis,
In accordance with the CCDC 5B-2010 contract dated June 11, 2019, County Council at its
regularly scheduled meeting on January 26, 2021 has approved the construction budget in
the amount of $28,959,234, HST extra, for the Terrace Lodge Redevelopment.
Please confirm this Letter ofIntent is sufficient for D. Grant Construction Limited to initiate
construction and mobilize to site in the next two weeks. Also, please arrange to submit the
required bonds and insurances to MMMC Architects Inc.
It should be noted that the County has intentionally approved the construction budget and the
start of construction prior to FEC approval by the Ministry of Long-Term Care.
Yours truly,
Julie Gonyou
Chief Administrative Officer
Tom Marks
Warden
cc: MMMC Architects
Forth RailManagement Inc.
Jim Bundschuh, Director of Finance, County of Elgin
County of Elgin
450 Sunset Drive
St. Thomas, Ontario
N5R 5V1 Canada
Phone: 519-631-1460
www.elgin-county.on.ca