Report to: General Committee Report Date: May 30, 2008

SUBJECT: Extension of Contract 068-R-06 Consulting Services for Facility Project Management and Space Planning

PREPARED BY: Brian Millar, Ext, 6190

Alex Moore Ext, 4711

RECOMMENDATION:

THAT the report entitled “Extension of Contract 068-R-06 Consulting Services for Facility Project Management and Space Planning” be received;

AND THAT contract 068-R-08 “Consulting Services for Facility Project Management and Space Planning” be extended to include the construction projects at 8100 Warden Avenue;

AND THAT the construction projects undertaken at 8100 Warden Ave shall be Zero Waste Construction;

AND THAT the current Purchase Order for Consulting Services for Facility Project Management and Space Planning with Mayhew and Associates be increased to an upset limit of $1,446,000 exclusive of GST;

AND THAT the contract costs be funded from the 2008 Capital Relocation of Fire Admin and other Civic Centre Departments account 056 6150 8283 005 in the amount of $950,000.00 and 2008 Corporate Accommodation – Annual Program account 056 6150 8101 005 in the amount of $496,000.00

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

Not applicable

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this report is to obtain Council approval to award the extension of the contract with Mayhew and Associates for a turn key relocation of the Fire Department administration offices from 60 Esna Park and relocation of Asset Management, Waterworks, Waste Management Departments, Recreation Services, Strategic Services and the Commissioner of Community Services from the Civic Centre to 8100 Warden Avenue.

BACKGROUND:

In April 2006, RFP 068-R-06 was issued for facility project management and space planning for a period of (1) one year with the option to renew for an additional two (2) years. On April 10, 2007 council approved the two (2) year extension (2007-2009) to Mayhew and Associates, the highest ranked and lowest priced proponent on RFP 068-R-06.

The RFP was released for Facility Management, Project Management, Space Planning and Move Management within the Markham Civic Centre or another specified location(s) and included the following:

· Developing and validating the project scope of work

· Identifying project time frame complete with detailed tasks and associated milestones

· Provide a process to manage scope change

· Identify team members and responsibilities

· Establish communication and reporting requirements

· Establish project budgeting and cost management to meet project objectives within approved budget

· Develop, issue, and award Quotations, Requests for Proposals, and Tenders as may be required

· Source, contract and supervise vendors engaged in delivering projects approved by the Town

· Provide ‘turn-key’ administrative services for space planning projects including the processing of invoices relating to project requirements

Over the past 18 months, Mayhew Associates have project managed several space planning projects for various Town of Markham departments. (13) Thirteen projects have been completed and (25) twenty five projects are in various stages of progress.

In February, 2008 Council approved budget in the amount of $496,000 for Corporate Accommodations for the Civic Centre. In addition to this amount Council also approved $1,000,000 to increase the scope of the Corporate Accommodations Planning Program to facilitate the relocate of the Fire Administration offices and several other departments to 8100 Warden Avenue. The total amount in the 2008 Capital Budget for Corporate Accommodation is $1,496,000.

Mayhew and associates will continue to provide a turnkey process to achieve these efficiencies on behalf of the Town. Further, Mayhew and associates will continue to follow the Town’s Purchasing By-Law in obtaining written quotations from suppliers to facilitate the various space planning projects.

OPTIONS/ DISCUSSION:

Mayhew Associates were the successful proponent on RFP 068-R-06 “Consulting Services for Facility Project Management and Space Planning” and was the highest ranked and lowest priced proponent with the lowest administration pass through costs of 2% from a range of 2% to 10%. Further, the hourly rates for both the Project Manager as well as the Junior Designer were the lowest in a range from $65 - $175 per hour for the Project Manager and $58 - $120 for the Junior Designer.

Construction Contractor Costs (Estimated)

Since the preparation of the 2008 Capital Budget in early 2007 the details of the space planning requirements for both the Civic Centre and 8100 Warden Avenue have evolved and can now be better defined. The scope of the move to 8100 Warden has increased to reflect a move of 130 staff members and 7 departments instead of 100 staff and 4 departments as originally anticipated to make available sufficient space at the Civic Centre to accommodate the needs. As a result, a greater proportion of the budget will need to be expended at 8100 Warden Avenue to accommodate the staff being relocated there. Over the coming months staff will finalize the designs and costings for the space changes at the Civic Centre that will take place over the next year or two. Staff will be submitting additional funds in the 2009 Capital Budget to accommodate the balance of the work required.

The current cost estimate for the work required to accommodate staff at 8100 Warden Avenue is as follows. Please refer to Attachment ‘A’ for a detailed list:

Construction (including 10% Contingency): $ 714,994.50

Project Specialties $ 32,049.42

Furniture, Fixtures and Equipment $ 455,022.00

Consulting Services $ 231,795.00

Total Cost Estimate $1,433,860.92

Mayhew and Associates Costs (included in above costs)

•         $ 120,000 - Space Planning (includes approx $35K mechanical and electrical work)

•         $ 111,795 – Construction Management

•         $ 231,795 – Total - Space Planning & Construction Management (Estimated)

Staff have negotiated a fixed construction management fee with Mayhew which will include site management (Senior Construction Manger, Estimator & Construction Administrator), 2% mark-up for administration costs of invoices required to pay all general construction contracts and site supervision during the construction period.

This construction management fee is the typical costs that would normally be charged by a general contractor for overhead and profit.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

The following table is a summary of the financial considerations for this report:
Original Budget and Account #	$1,000,000	056 6150 8283 005 Relocation Civic Ctr Depts
Budget Allocated to Project	$950,000
Less Cost	($1,433,860.92)	Awarded to Mayhew and Associates
Less Contingency
Budget Remaining	($483,860.92)

The shortfall of $483,861 will be funded from the $496,000 available budget in 2008 Corporate Accommodation – Annual Program account 056 6150 8101 005. This budget was allocated to the Civic Centre accommodation planning however due to the change in scope of the overall project Staff will be submitting a funding request as part of the 2009 Capital Budgets process to fund the Civic Centre costs.

ENVIRONMENTAL CONSIDERATIONS:

The successful general contractors for 8100 Warden Ave will be required to provide a plan that details disposal of drywall, studs and carpet in order to meet zero waste construction.

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

RECOMMENDED

BY: ________________________ ________________________

Steve Andrews, Peter Loukes,

Director, Asset Management Commission Lead, Operations and Asset Management

ATTACHMENTS:

“A” – Financial Attachment

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