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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 1 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. 2 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: 3 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. 4 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. 5 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. 6 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. 7 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. I 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