Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director, Civic Theatres in consultation with Manager, Facilities Development

SUBJECT:

Civic Theatres - Award of Contract for QET/VPH Construction Package `99

 

RECOMMENDATION

A. THAT the budget allocation for Phase 2 of the Civic Theatres Upgrade Project be increased by $600,000 from $4,716,000 to $5,316,000, to provide additional upgrading and contingency funding as set out in this report; source of funding to be the Civic Theatres Capital Reserve, with interim financing from the Property Endowment Fund.

B. THAT Haebler Construction Limited be awarded the general Construction contract for the QET / Vancouver Playhouse Construction Package '99 in the amount of $ 2,476,700 plus GST; source of funding to be the Civic Theatres Upgrade Program Capital Budget.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of A and B.

POLICY

Council approves all capital projects, including funding.
Construction contracts over $300,000 require the approval of Council.
Contracts are awarded on the basis of best value for the City.

PURPOSE

This report seeks authorization to award the contract for the Construction package for the last package in Phase 2 of the Civic Theatres upgrading work. This report also seeks approval to allocate additional funding of $600,000 to the Phase 2 project budget.

BACKGROUND

Council has approved a long term upgrading program for the Civic Theatres utilizing funds generated from the ticket surcharge and from the net income of the QET Parking Garage. In order to ensure adequate funding is available during the design and construction phase, Council approved interim funding from the Property Endowment Fund.

Phase 1 projects have been completed at a cost of $3.9 million and the interim financing from the Property Endowment Fund has been repaid.

On March 3, 1998, Council approved implementation of Phase 2 of the Civic Theatres upgrades at an estimated cost of $4.716 million, including $600,000 for design costs and $4.116 million for construction. Source of funds for this work is the Civic Theatres Capital Reserve with interim financing provided as a loan from the Property Endowment Fund, to be repaid on terms acceptable to the Director of Finance and Director of Civic Theatres.

DISCUSSION

The final package of work in Phase 2 outlined in this report will include major upgrades to the Queen Elizabeth Theatre and Vancouver Playhouse. Included in this package are the addition of salons/meeting rooms to the QET/Playhouse, expanding the Playhouse lower lobby, adding air conditioning to the QET lobbies, adding glazing to the QET Parkade stairwells and painting the Parkade interior. Work is scheduled to commence in March and be completed by about the end of September, 1999.

An invitation was publicly advertised for general contractors with theatre renovation experience to prequalify for the work. Eight firms prequalified and seven submitted tenders which, including the base bid and separate prices, are as follows:

On the basis of the low bid (base bid and separate prices), best value to the City and compliance with tender requirements, it is recommended that the general contract be awarded to Haebler Construction Ltd. in the amount of $2,476,700 plus GST.

PHASE 2 PROJECT BUDGET

The Phase 2 project budget was established at $4,716,000 to provide for design fees and construction costs. To date, design and construction costs have resulted in allocation of $1,507,225 (December 31, 1998).

A review of the work to be completed in Phase 2 and the available funding indicates that it will be necessary to increase the overall funding allocation by $600,000 to provide for additional work that will be required and ensure sufficient contingency funding is available. This requirement will increase the total funding for Phase 2 to $5,316,000. Funding will be provided from the Civic Theatres Capital Reserve with interim financing as necessary from the Property Endowment Fund on terms acceptable to the Director of Finance.

The additional work that may be incurred in Phase 2 includes: removing abandoned underground oil tanks; relocating a major telephone service entrance cable; removing vinyl asbestos floor tiles and textured asbestos-impregnated ceilings in the lower QET lobby; and installing audio-visual equipment in the new salons/meeting rooms.

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ag990311.htm

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