Council approves extra funds for arena
By Chad Ingram
Minden
Hills councillors have approved additional contingency funds for the
township’s nearly $13-million arena project, with the project facing an
overrun.
Hills councillors have approved additional contingency funds for the
township’s nearly $13-million arena project, with the project facing an
overrun.
After
a nearly two-hour-long conversation during their Dec. 12 meeting,
councillors approved an additional $250,000 in contingency funds for the
project, which has a budget of some $12.5-million. While there is
currently still more than $200,000 in the project’s contingency fund, it
is projected it will run a deficit of more than $66,500, and an
additional $183,000 in contingency was being requested, those amounts
combined constituting the additional $250,000. That contingency will be
funded through debenture financing.
a nearly two-hour-long conversation during their Dec. 12 meeting,
councillors approved an additional $250,000 in contingency funds for the
project, which has a budget of some $12.5-million. While there is
currently still more than $200,000 in the project’s contingency fund, it
is projected it will run a deficit of more than $66,500, and an
additional $183,000 in contingency was being requested, those amounts
combined constituting the additional $250,000. That contingency will be
funded through debenture financing.
Community
services director Mark Coleman told councillors that part of the reason
for the overrun was that the cost for many sub-trades have come in
higher than anticipated.
services director Mark Coleman told councillors that part of the reason
for the overrun was that the cost for many sub-trades have come in
higher than anticipated.
“They
are not available locally, they do have to come from abroad quite
frequently,” Coleman said, explaining the tradespeople were travelling
to Minden from cities such as Toronto, Peterborough and Barrie.
are not available locally, they do have to come from abroad quite
frequently,” Coleman said, explaining the tradespeople were travelling
to Minden from cities such as Toronto, Peterborough and Barrie.
The
contract for the project was awarded to the joint project delivery team
of McDonald Brothers Construction Ltd. and Parkin Architects Limited,
who are in charge of tendering for the sub-tradespeople. Coleman told
council that the extra contingency being requested would be enough to
get through the remainder of the project, which is running ahead of
schedule, and is now anticipated will be completed in June.
contract for the project was awarded to the joint project delivery team
of McDonald Brothers Construction Ltd. and Parkin Architects Limited,
who are in charge of tendering for the sub-tradespeople. Coleman told
council that the extra contingency being requested would be enough to
get through the remainder of the project, which is running ahead of
schedule, and is now anticipated will be completed in June.
“The
point is, they don’t want to need to come back to council again,” said
Coleman, who is leaving the township to take a new job with the
Municipality of Brockton, which he is scheduled to begin early in the
new year.
point is, they don’t want to need to come back to council again,” said
Coleman, who is leaving the township to take a new job with the
Municipality of Brockton, which he is scheduled to begin early in the
new year.
The
project is being conducted through a management model called
“integrated project delivery.” A feature of that model is what is
referred to as a “profit pool,” a contingency fund when any saving found
accrues, and monies from which, should there be any left over, are
split between the municipality and the builders. The builders have also
taken money from that profit pool for reaching certain milestones of the
project. Back in July, with the contingency fund sitting at nearly
$300,000, $80,000 was “released,” $40,000 of it going to the companies,
and $40,000 to the township, which it put back into the project for
“early integration,” or the process of joining the existing community
centre building with the new arena.
project is being conducted through a management model called
“integrated project delivery.” A feature of that model is what is
referred to as a “profit pool,” a contingency fund when any saving found
accrues, and monies from which, should there be any left over, are
split between the municipality and the builders. The builders have also
taken money from that profit pool for reaching certain milestones of the
project. Back in July, with the contingency fund sitting at nearly
$300,000, $80,000 was “released,” $40,000 of it going to the companies,
and $40,000 to the township, which it put back into the project for
“early integration,” or the process of joining the existing community
centre building with the new arena.
About
half of the work on the new arena has been completed, and more than 90
per cent of the tendering for sub-trades has been completed, Coleman
told councillors, noting it was unlikely that any savings would be found
in the remaining tenders.
“There’s not much, if any, savings to be realized in remaining tendering,” he said.
“What’s
left is painting, millwork and concrete,” said Patrick Brousseau of
McDonald Bros. Construction. Brousseau and owner Paul McDonald were in
council chambers for last week’s meeting.
half of the work on the new arena has been completed, and more than 90
per cent of the tendering for sub-trades has been completed, Coleman
told councillors, noting it was unlikely that any savings would be found
in the remaining tenders.
“There’s not much, if any, savings to be realized in remaining tendering,” he said.
“What’s
left is painting, millwork and concrete,” said Patrick Brousseau of
McDonald Bros. Construction. Brousseau and owner Paul McDonald were in
council chambers for last week’s meeting.
“The project’s very dynamic,” McDonald told councillors. “The numbers change regularly.”
Some
changes to the project have had to be made as it’s gone along, an
extension of the building by five feet that related to snow loading on
the roof, for example.
changes to the project have had to be made as it’s gone along, an
extension of the building by five feet that related to snow loading on
the roof, for example.
Mayor
Brent Devolin said the project could still be brought in at the budget
number, suggesting that aspects such as landscaping, for instance, could
be put off for the time being.
Brent Devolin said the project could still be brought in at the budget
number, suggesting that aspects such as landscaping, for instance, could
be put off for the time being.
“It
can still be brought in at the number,” Devolin said. “We can meet the
number that we obligated to when we signed up for this.”
can still be brought in at the number,” Devolin said. “We can meet the
number that we obligated to when we signed up for this.”
If
council wants to include a list of “value-added items” for the
facility, items such a gym dividers, a projector and screen, window
shades, lobby furniture, etc., it will cost an additional $305,000 to
purchase all the items on the list. Until recently, the cost to complete
that list would have been $455,000, however, the township was
successful in an Ontario Trillium Foundation grant application, with the
grant covering $150,000 worth of items.
council wants to include a list of “value-added items” for the
facility, items such a gym dividers, a projector and screen, window
shades, lobby furniture, etc., it will cost an additional $305,000 to
purchase all the items on the list. Until recently, the cost to complete
that list would have been $455,000, however, the township was
successful in an Ontario Trillium Foundation grant application, with the
grant covering $150,000 worth of items.
“This is the good news report of today,” Coleman told council.
Items
that will be covered by the grant include retractable basketball
backstops, fitness room equipment, a portable stage, court posts and
nets, rackets and sports balls
Councillor Bob Carter took issue with
the report on value-added items, noting that during a meeting in late
June, councillors had approved a list of items worth nearly $150,000,
that were prioritized in a different order than on the current list.
that will be covered by the grant include retractable basketball
backstops, fitness room equipment, a portable stage, court posts and
nets, rackets and sports balls
Councillor Bob Carter took issue with
the report on value-added items, noting that during a meeting in late
June, councillors had approved a list of items worth nearly $150,000,
that were prioritized in a different order than on the current list.
“On
the 27th of June, we approved a list of items,” Carter said, noting
some of those items were not prioritized in the new report. “We’re
approving things, now we’re taking this out.”
the 27th of June, we approved a list of items,” Carter said, noting
some of those items were not prioritized in the new report. “We’re
approving things, now we’re taking this out.”
The
minutes from the June 27 meeting show that council passed the following
resolution: “And further, that council approves, at this time, $40,000
in early integration costs and consultant fees towards the value-added
items that are design and construction time sensitive ranked as No. 1s
and 2s currently totalling $149,187 . . .”
Among those items was the
paving of the balance of arena parking lot, valued at $56,000. However,
in the report on value-added items that was part of last week’s
meeting, the paving project, now valued at more than $68,000, was part
of the $305,000 worth of outstanding value-added items that could,
according to the report, “be added at any time.”
minutes from the June 27 meeting show that council passed the following
resolution: “And further, that council approves, at this time, $40,000
in early integration costs and consultant fees towards the value-added
items that are design and construction time sensitive ranked as No. 1s
and 2s currently totalling $149,187 . . .”
Among those items was the
paving of the balance of arena parking lot, valued at $56,000. However,
in the report on value-added items that was part of last week’s
meeting, the paving project, now valued at more than $68,000, was part
of the $305,000 worth of outstanding value-added items that could,
according to the report, “be added at any time.”
Carter
said he found it concerning that, between the contingency funding and
money for value-added items, more than $500,000 in new costs were
presenting themselves.
Councillors deferred voting on the $305,000
worth of value-added items pending further clarification, and Coleman
said he took responsibility for any misunderstanding that had occurred.
said he found it concerning that, between the contingency funding and
money for value-added items, more than $500,000 in new costs were
presenting themselves.
Councillors deferred voting on the $305,000
worth of value-added items pending further clarification, and Coleman
said he took responsibility for any misunderstanding that had occurred.
“I’m
trying to hold back what I’m thinking and feeling right now,” said
Councillor Pam Sayne, noting that if the $250,000 in new contingency was
not approved, that a number of finishes with the building would be
downgraded – painted steel railing instead of stainless steel, for
example. “These are kind of downsizing what this community expected of
us.”
trying to hold back what I’m thinking and feeling right now,” said
Councillor Pam Sayne, noting that if the $250,000 in new contingency was
not approved, that a number of finishes with the building would be
downgraded – painted steel railing instead of stainless steel, for
example. “These are kind of downsizing what this community expected of
us.”
As
for the request for further funds, Sayne said, “Where does this begin
and end? I don’t know. I really don’t have a good feeling that there’s
going to be ground under this.”
for the request for further funds, Sayne said, “Where does this begin
and end? I don’t know. I really don’t have a good feeling that there’s
going to be ground under this.”
Additionally,
while the township will pay for the bulk of the project through a loan
from provincial lending agency Infrastructure Ontario, some aspects are
ineligible under Infrastructure Ontario’s criteria, so just over $1
million now needs to come from another source. A financing update from
treasurer and chief administrative officer Lorrie Blanchard suggested
using a combination of township reserve funds to cover those costs in
the absence of other sources of financing, a plan endorsed by council.
A fundraising group for the arena project has been formed, and its goal is to raise $750,000 to help offset costs.
