Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Facilities Development in consultation with Directors of Social Planning and Real Estate

SUBJECT:

Beach Childcare - 1475 Burrard Street - Award of Construction Contract

 

RECOMMENDATION

GENERAL MANAGERS' COMMENTS

POLICY

Contracts over $300,000 are to be approved by Council.

PURPOSE

The purpose of this report is to seek Council approval for the award of a contract for construction of the new Beach Avenue Childcare and to recommend a source for the funding shortfall of approximately $95,000.

BACKGROUND

In November 1989, Council endorsed the Granville Slopes Neighbourhood Concept Plan, which included a neighbourhood park at 800 Beach Avenue. The funding strategy for the park was approved by Council in December 1989, of which two-thirds of the cost would come from CAC's on new projects and one-third would come from a local improvement on existing projects. The park was acquired by May 1992.

In May 1993, Council chose not to proceed with the local improvement for the one-third residents' share of park costs which amounted to $2,089,000, and staff were instructed to report back on park development and funding options. In July 1993, Council decided that the full park would be developed and that the PEF would finance the funding shortfall of $1,429,000 with the expectation that this contribution would be repaid from the sale of increased density on the 1005 Beach Avenue site.

Rezoning of 1005 Beach Avenue began in 1996. This site is improved with two daycare portables and is leased to British Columbia Building Corporation (BCBC) at a nominal rent. The YMCA has operated the 37-space daycare for children ages 18 months to 5 years for approximately 25 years. Staff reviewed numerous options for replacement of the existing daycare space including on-site and off-site opportunities. The rezoning application was approved by Council July 1997, with a condition of enactment being:

A lengthy investigation of private and civic owned sites determined that the only viable option was the creation of a new daycare site immediately adjacent to the Burrard Street Bridge on Beach Avenue (see Appendix "A" for a site plan). This was approved by Council on May 4, 1999, subject to finalization of a financing plan of the construction costs for the new facility, and $235,000 was allocated from the PEF for the necessary relocation of utilities, with the expectation that this contribution wouuld be repaid from the eventual sale of 1005 Beach Avenue.

In October 1999, Council agreed to receive a contribution of $540,000 from the Province of British Columbia, allocated $325,000 from the 1999 Capital Budget and approved a $90,000repayable loan to the YMCA of Greater Vancouver in order to fund construction of the Beach Childcare facility.

Council also authorized the City to enter into an operating agreement with the YMCA of Greater Vancouver for use of the childcare facility for a $1 a year, and approved the retention of the architects Davidson Yuen Simpson Architects to design a 37-space facility based on a conceptual design prepared for BCBC.

DISCUSSION

1. Construction Tenders

By open invitation tenders were sought and received for the new childcare facility as follows:

Separate prices were obtained for various items on which the contract with the successful contractor could be negotiated.

Given that the lowest price was higher than the amount budgeted for the construction portion of the project, following discussion with the YMCA and Social Planning Department, price reductions were obtained for deleting items that would not adversely affect the functional requirement, regulatory requirements and ongoing maintenance cost of the facility. On this basis the quoted price by LEC Fortress Engineering Corp. could be reduced to $795,000. LEC Fortress Engineering Corp. has also agreed to extend the date of expiry of its bid from January 1, 2001 to February 28, 2001.

2. Revised Project Budget

The original budget of the project of $955,000 to $1,025,000 (hard and soft costs) was based on a feasibility study and preliminary design commissioned by BCBC. In requesting approval of the project in 1999, staff expressed concern that additional costs might be realized forfoundation and landscaping in light of the unusual site terrain adjacent to the Burrard Street Bridge, and suggested that final costs could only be confirmed after tenders were received. Although all efforts have been made to bring the project within the existing budget by deleting nonessential items, the budget shortfall is now projected at $95,000 (see Appendix "B").

On the basis of information provided by the consultants and the YMCA, staff is of the opinion that the only likely way to reduce the cost further would be to reject all tenders, significantly reduce the size of the facility and program, and re-tender the project. This option will require significant redesign, loss of a major portion of the design fees already invested in the project, and would delay the relocation of the childcare facility and receipt of sale proceeds from 1005 Beach Avenue by about three (3) months minimum. Reduction of the program is not acceptable to the YMCA and may result in the loss of Provincial funding.

At present, Council has approved funding for the construction of the daycare facility as follows:

Staff now recommend that the funding shortfall be provided in the interim by an additional contribution from the Property Endowment Fund of up to $95,000. This contribution would be returned to the PEF from the eventual sale of 1005 Beach Avenue.

Should Council concur with this recommendation for additional funding, the Director of Facilities Development recommends that the construction contract be awarded to the low bidder LEC Fortress Engineering Corp. up to the amount of $795,000.

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APPENDIX B

BEACH CHILDCARE FACILITY

BUDGET

On the basis of LEC Fortress Engineering Corp. tender and estimate of possible adjustments the revised Budget is as follows:

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