ADMINISTRATIVE REPORT

Date: October 16, 2001
Author/Local: M. Marchand/7851

RTS No. 02358

CC File No. 1805

Council: October 30, 2001

TO:	Vancouver City Council
FROM:	Directors of Social Planning and Facilities Development
SUBJECT:	Pooh Corner Daycare

RECOMMENDATIONS

A. THAT the contract for the renovation of Pooh Corner Daycare, 975 Lagoon Drive, be awarded to Darwin Construction Ltd. up to the amount of $395,097; source of funding to be as set out in this report.

B. THAT up to $25,000 additional funds be allocated from the Triangle West Community Amenity Contributions (C.A.C.) to cover the funding shortfall due to the additional costs to the project for the removal and mitigation of lead paint not included in the original budget.

GENERAL MANAGERS' COMMENTS

The General Managers of Community Services and Park Board, RECOMMEND approval of A and B.

POLICY

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

· Contracts are to be awarded on the basis of best value for the City

PURPOSE

The purpose of this report is to:

· seek approval to award the contract for the renovation of Pooh Corner Daycare to the low bidder, Darwin Construction Ltd., and,

· ask for Council's approval to increase the contribution from the Triangle West Community Amenity Contribution monies by $25,000 to a total of $502,151 for lead paint removal and mitigation.

BACKGROUND

Pooh Corner Daycare is a licensed 22 space childcare facility in the old Park Superintendent's House, a "B" listed heritage building, located at 975 Lagoon Drive, in Stanley Park. It has operated as a society since 1972. Under its current Provincial childcare license 12 of the 22 spaces are designated for toddler care and 10 spaces for `3-5' year old care.

In 1996 Council approved a grant of $67,850 and the Provincial Child Care Branch approved a grant of $70,850 in 1997 towards the project. During the initial design phase for the renovation further study uncovered significant additional structural, code, asbestos removal and licensing requirements that pushed project costs over $400,000. The daycare board immediately initiated a broader capital campaign. In late 1997 they were successful in securing $24,255 from the Vancouver Foundation.

On July 27, 2000, Council approved use of $477,151 of Triangle West Community Amenity Contribution monies (CACs) as a source of funding to upgrade the building for the Pooh Corner Daycare.

This project furthers the City's goal of sustainable development through reuse and adaptation of an existing building for new/expanded use, and extension of the natural life of the building.

DISCUSSION

From an open request of expressions of interest for prequalification of general contractors, eight contractors were prequalified to submit tenders for the project. Complete tenders were received as follows:

Darwin Construction (Western) Ltd.	$ 395,097.00
BGM Construction Ltd.	$ 433,000.00
LEC Fortress Engineering Corp.	$ 490,000.00
Parkwood Construction Ltd.	$ 511,897.00
TMG Contracting Ltd.	$ 522,380.00
Kriedemann Konstruction	$ 648,457.88

On the basis of the best value it is recommended that the contract be awarded to Darwin Construction (Western) Ltd., the low bidder, up to a maximum amount of $395,097.

All tenderers have been advised of this recommendation.

Financial Analysis

The total available funds to date are as follows:

Triangle West CAC's	$ 477,151
MCF Childcare Grant 1997 (remainder)	$ 35,900
Vancouver Foundation Grant 1997	$ 24,255
City Capital Grant 1996	$ 67,850
Pooh Corner Fundraising	$ 5,745
Park Board funding for asbestos removal	$ 15,000
Total available funding	$ 625,901

During the detailed assessment of the hazardous materials in the building, high levels of lead were found in the paint causing an unanticipated expense of $34,000 for its removal or containment. The project has been able to absorb a portion of this cost through design changes and tendering outcome, leaving an unfunded amount of $25,000.

To date, the City has collected over $7.4 million in CACs from new developments in the Triangle West area, of which $1.4 million remains uncommitted. City and Park Board staff are proposing that $25,000 of the Triangle West CACs be additionally allocated to the Pooh Corner Daycare renovation/expansion for the lead paint removal and mitigation, for a total funding of $650,901.

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(c) 1998 City of Vancouver