Brussels, Morris & Grey Community Centre

Class B Cost Estimate Overview

to

Municipality of Huron East Council

Presented by

Brad McRoberts, CAO/Clerk

September 15, 2021

Background

• Municipality of Huron East applied for Grant funding through the Investing in Canada Infrastructure Program (ICIP) – Community Culture and Recreation (CCR) Funding Stream in 2019

• Approval received February 24, 2021 and announced March 2021

• Funding:

• $1,915,200 Federal (40%)

• $1,595,840 Provincial (33.3%)

• $1,276,960 Municipal (26.7%)

• $4,788,000 Total Funding

Background (cont’d)• Municipal share:

• 50/50 basis Huron East & Morris Turnberry/Community Fundraising• $127,680 Morris Turnberry• $510,800 Huron East• $638,480 Community Fundraising

• As original Application expected 1/3 share the Municipal Share should be increased to provide greater budget and revised as follows:• 50/50 basis Huron East & Morris Turnberry/Community Fundraising

• $159,600 Morris Turnberry• $638,400 Huron East• $798,000 Community Fundraising • $1,596,000 Total Municipal

Background (Cont’d)

• Funding components:• 35% Expansion of existing footprint• 6 new dressing rooms• New lobby/viewing area• New fitness/exercise room• Kitchen renovations• Auditorium upgrades• Roof replacement

Budget

• $1,915,200 Federal

• $1,595,840 Provincial

• $159,600 Morris Turnberry

• $638,400 Huron East

• $798,000 Community Fundraising

• $5,107,040 Total Budget

Timelines

• Funding Program had a March 31, 2027 deadline• Application anticipated completion of work between

April 1, 2021 and March 31, 2022• Based upon funding announcement in February 2021

timeline revised to April 1, 2021 and December 31, 2022

Project Challenges

• Supply chain disruptions due to pandemic• Longer material delivery timeframes (due to supply chain)• Higher material costs (due to supply chain)• Higher labour costs (due to protocols and supply chain)

• Brussels Homecoming Summer of 2022• Fundraising

Site Plan

1st Floor Plan

Conceptualize View

Cost Estimates

• First Draft of the Class B Cost Estimate• $8,727,481 less HST rebate = $7,997,000• Excludes Engineering and permit fees• Assume 4.5% for Eng. Fees = $8,357,000• Over budget by $3,250,000

Cost Estimates (Cont’d)

• Met with Architect and Cost Estimators• Identified value engineering options (approximate $ savings):

• Delete corner bleacher seating ($19,230)

• Delete 2nd Floor Sound Room Modifications ($7,560)

• Remove Asphalt ($51,190)

• Replace ACM with flat profile metal cladding ($47,700)

• Delete roof replacement ($1,571,900)

• New roof changes to Thermoplastic Polyolefin (TPO) from modified bitumen ($180,000)

• Remove cementitious thermal barrier ($40,460)

Cost Estimates (Cont’d)

• Met with Architect and Cost Estimators (Cont’d)• Identified value engineering options (approximate $ savings)

(Cont’d):• Delete west cold storage room ($72,640)• Delete Gym ($218,160)• Delete pricing to heat existing building with new addition boilers

($80,000)• Delete site electrical and directional drilling ($79,000)• Reduce width of dressing room corridor ($26,610)• Delete T-bar ceiling and bulkhead in lobby ($25,230)• Reduce lobby and entrance area ($30,400)

Cost Estimates (Cont’d)

• 2nd Draft of the Class B Cost Estimate• $5,581,745 less HST rebate = $5,110,000• Excludes Engineering and permit fees• Assume 4.5% for Eng. Fees & 3% for Contingency =

$5,493,000• Still over budget by $386,000• Risks:

• Funding program objects to key components being removed (i.e. roof & gym)

Options

1. Cancel Project;2. Delay Project hoping supply chain and labour issues

abate – risk inflation factors and lack of drop in pricing –need to confirm with funding program that delay is acceptable;

3. Increase municipal and/or fundraising contributions; or4. Scale back project further – risk meeting project

requirements of the grant program

BMGCC Committee Consultation

• BMGCC Management Committee and Building Sub-Committee were consulted on August 19th and August 24th

• BMGCC Management Committee made recommendations to Council regarding the value engineering items and options related to the project

BMGCC Committee Recommendations

• Eliminate asphalt paving in the north and south parking lots but retain the asphalt paving of the east parking lot as it will be the new entrance

• Remove the proposed corner bleacher seating• Remove the proposed 2nd floor sound room modifications• Replace the ACM panels with flat metal cladding• Replace modified bitumen roofing on the addition with

thermoplastic polyolefin• Remove the cementitious thermal barrier – subject to

approval by CBO

BMGCC Committee Recommendations (Cont’d)

• Reduce the width of the dressing room corridor by 1’8”• Remove the west cold storage room• Remove work to heat existing building with new addition

boilers• Remove electrical service directional drilling• Remove proposed parking lot lighting but still install

conduit to allow for future installation• Remove the T-bar ceiling and bulkhead in the lobby• Reduce dressing rooms to shorten length of south side

addition

BMGCC Committee Recommendations (Cont’d)

• Remove cage storage and reduce dressing room corridor further

• Do not support canceling the project, delaying the project or scaling back the project further

• Fundraising goal be increased from $798,000 to $1,400,000

• Huron East and Morris-Turnberry increasing municipal funding

Updated Roofing Cost

• Marshall & Murray Inc. were retained to provide an updated and detailed estimate of the roofing cost

• Roofing cost estimated by Marshall & Murray Inc. is $1.11M + or – 10% and excluding contractor mark-up

• Assuming an additional 10% for mark-up and contingency the roofing cost could be reduced to $1.221M

• Additional reduction of $350,900

Staff Recommended Considerations

• Staff do not support “deferring” components of the project to a near future date as it presents a future obligation or liability to the municipality

• Items to consider to include now and not defer:

• North and south portions of the parking lot – as noted in Table 1 staff recommend that the asphalt paving be undertaken as part of a separate tender and be include din the municipal paving tender to eliminate general contractor mark-up and possibly get better pricing – municipal staff will complete prep work as an “in-kind” service;

• New underground electrical service; and

• Parking lot lighting - if either desired or considered necessary for safety and security reasons then include now

• Additional cost for including these items now is estimated to be $100,000

Additional Funding Requirement

• Remaining funding shortfall after including additional fundraising and reduced roofing cost is $1,551,600:• Huron East $1,241,300;• Morris-Turnberry $310,300

• Total contribution by municipal partners:• Huron East $1,889,700• Morris-Turnberry $469,900

Financing• Staff recommendation is to debenture the additional amount

of $1.25M over 20 years• Annual debenture cost including P+I would be ~$80,000• Applying the 2.1% capital levy (as recommended in the Asset

Management Plan 2018) beginning in 2022 as recommended in the AMP (September 2018) would provide an additional $116,000 in 2022 of which a portion would be allocated to the annual debenture payment for the renovation and the difference to another capital asset

• Subsequent years will generate a similar amount of capital funding which could then be allocated to other capital assets such as roads, bridges, other facilities, fleet, and stormwater/drainage works

FIGURE 1 – CONCEPTUALIZED VIEW OF BRUSSELS MORRIS & GREY COMMUNITY CENTRE RENOVATION

Table 1Value Engineering Summary

Brussels, Morris and Grey Community Centre Renovation

September 7, 2021

Item Details Staff Comments

BMGCC Committee Recommendation

Value Engineering

Cost Savings

BMGCC Committee

Recommendation Savings

Revised Cost Estimate based

upon staff comments or

additional information

Initial Value Engineering:

1Delete corner bleacher seating Additional non-heated, at-ice, viewing area proposed in the

southeast corner of the arena. Eliminate

19,230$ 19,230$

2 Delete 2nd Floor sound room modifications Intend to make the current sound room glass viewing surface be angular allowing for improved ice surface visibility.

Eliminate7,560$ 7,560$

3

Eliminate asphalt in the parking lot Proposed to eliminate all new asphalt surfaces and only provide gravel parking in areas not currently paved.

Recommended to be removed from project but added to municipal asphalt work in an attempt to eliminate general contractor mark up of paving sub-contractor work and to achieve better pricing if included in a larger contract. Municipal staff will prepare gravel pad for asphalt work with can reduce the overall cost slightly with "in kind" work. Staff don't recommend delaying work as it becomes a future need that can be difficult to budget in the future.

Agree with a partial elimination but want the asphalt to the east side installed

51,190$ 40,000$ 41,500$

4Replace aluminum composite material cladding (ACM) with flat profile metal cladding

Changes the exterior finish look resulting in a less aesthetic finish but still a nice clean professional exterior finish.

Agree with change47,700$ 47,700$

5

Delete roof replacement Existing roof in in need of replacement within the next 5 years and was included in the project funding application as a key component of the renovation.

Staff do not recommend the removal of this item as is a required component of work and removing it would only defer the cost of the work to sometime within the next 5 years. There is also a significant concern that the funding program would not accept the elimination of the roof as an acceptable project removal. A second detailed cost estimate was obtained from Marshall & Murray and was estimated to be $1,110,000 plus contingency and mark-up.

Do not support elimination from project

1,571,900$ -$ 1,221,000$

6

New roof on addition changes to thermoplastic polyolefin (TPO) vs. modified bitumen roofing

TPO roofing system is equally effective roofing system however it requires more care when staff or contractors are working on the roof to service or undertake maintenance and to not walk on areas not protected by designated pathways.

Agree with change

180,000$ 180,000$

7

Remove cementitious thermal barrier Cementitious thermal barrier is a building code requirement that is meant to prevent fires from progressing to a second floor level. As the new addition will not have a second floor is being recommended that this is not be required.

Subject to formal approval by CBO

Agree with change

40,460$ 40,460$

8

Delete west cold storage room Intended to provided additional non-heated storage area at the facility for items such as nets and curling stones. While useful, staff would be able to continue to accommodate storage intended for this area within the existing arena non-ice floor areas.

Eliminate

72,640$ 72,640$

9

Delete Fitness/Exercise Room Elimination of the proposed fitness/exercise room that was proposed at the northeast corner of the new addition. It was intend to be accessible for afterhours and have a separate secure entrance with change rooms and washrooms.

Do not support elimination from project

218,160$ -$

10

Delete pricing to heat existing building with new addition boilers It was originally intend to replace the existing heating system and feed it from the new boiler system in the new addition.

Replacement of the existing heating system would have resulted in some annual cost savings, but it is difficult ascertain the payback period to be expected from this replacement effort. Typically municipalities would like to see a payback period of less than 10 years. In order to achieve a ten year payback we would need to save $8000 per year (ignoring interest). Current heating cost in the BMGCC are only approximately $6000 per year. Assuming even a 30% savings, payback would take several decades to achieve. There is value in ensusuring tha the new boilers can accomodate future connect should the older heating system need replacement in the future.

Agree with change but want to ensure that the system could be fed to existing building in the future

80,000$ 80,000$

Table 1Value Engineering Summary

Brussels, Morris and Grey Community Centre Renovation

September 7, 2021

Item Details Staff Comments

BMGCC Committee Recommendation

Value Engineering

Cost Savings

BMGCC Committee

Recommendation Savings

Revised Cost Estimate based

upon staff comments or

additional information

11Delete site electrical and directional drilling (Split our separately below)

12

Directional Drill for New Service Line This was recommended by Festival Hydro in response to service and power issues experienced at the BMGCC. Recently the pole mounted transformer was blown due to the service line into the facility.

Upon review, staff cannot recommend the elimination of this work as it is deemed required at some point and again is only deferring a work item into the future. Staff could support at least installing the conduit for future pulling of the service cable at a near future date.

Eliminate

39,000$ 39,000$

13

Parking Lot lighting This includes the elimination of parking lot lighting poles and conduit. Lighting would be provided by fixtures placed on the exterior of the building.

While the BMGCC Committee support this removal they still request that conduit be installed for the future installation of the parking lot lighting. Staff are of the opinion that a decision needs to me made to either include it now or remove it entirely from the current project or any future project. Again, deferring an item does not relieve the municipality of cost it merely defers it to a future date.

Eliminate but still install conduit for future installation

40,000$ 30,000$ 14 Reduce width of Dressing room corridor Reduces the corridor by 1'8". Agree with change 26,610$ 26,610$

15

Delete T-bar ceiling and bulkhead in lobby Elimination of the drop ceiling in the lobby area leaving a exposed industrial style ceiling finish that would be painted but leave all conduit, ducts, trusses exposed. The elimination of the drop ceiling may result in less noise attenuation but this can be compensated with the installation of some inexpensive acoustic panels.

Agree with change

25,230$ 25,230$

16Reduce lobby and entrance area Straightens the exterior east line of the building at the

lobby/entrance area reducing the lobby square footage.Agree with change but want to retain the lobby canopy feature 30,400$ 30,400$

BMGCC Committee Value Engineering:

17

Reduce Dressing Room Portion of Building Proposed by the Building Committee in an effort to further reduce the square footage of the building without jeopardizing functionality. It again straightens the exterior line of the building on the southwest corner. Recommended 80,000$

18Eliminate Cage Storage Space Proposed by the Building Committee in an effort to further reduce

the square footage of the building without jeopardizing functionality. Further reduces the dressing room corridor Recommended 26,610$

Total Potential Reduction 2,450,080$ 745,440$

Plus Reduced Roofing Cost 350,900$

Revised Total Savings 1,096,340$

The revised budget and sources of funding would be as follows: Class B Cost 8,357,000$ • $1,915,200 Federal • $1,595,840 Provincial Revised Project Cost 7,260,660$ • $159,600 Morris-Turnberry• $638,400 Huron East ------------------------------------------------------------------------------> Original Project Budget 5,107,040$ • $798,000 Community Fundraising • $5,107,040 Total Budget Additional Fundraising Contribution 602,000$

Net Funding Shortfall 1,551,620$

Huron East Funding Shortfall 1,241,296$

Morris-Turnberry Shortfall 310,324$