project status report - cityofkingston.ca … · project status report project name: kingston...

Project Status Report

Project Name: Kingston Regional Sports and Entertainment Centre Department: Sustainability and Growth Period: January 1,2007 - January 31,2007

Prepared By: Lanie Hurdle, Director of Project Development

Doc u men t Own e r( s) I Project/Organization Role

I Cynthia Beach 1 Project Sponsor

I Lanie Hurdle I Project Director I

Project Status Jan 2007 - KRSEC

8 4

COUNCIL MEETING0 6 f E6 2 0 '07

Project Status Report - Kingston Regional Sports and Entertainment Centre

TABLE OF CONTENTS

PROJECT STATUS REPORT PURPOSE ..................................................... 3

PROJECT STATUS REPORT ....................................................................... 3

2.1 Project Status Report Details ............................................................... 3

2.2 Project Status Report Template ......................................................... 13

PROJECT STATUS REPORT APPROVALS .............................................. 16

APPENDICES .............................................................................................. 16

Appendix 1 : Revised Construction Schedule

211 212007

85

COUNCIL MEETINGO 6 2 '07

Proiect Status Report - Kinuston Reuional S ~ o r t s and Entertainment Centre

PROJECT STATUS REPORT PURPOSE The Project Status Report is a document used as a means of formal monthly reporting on the status of a project to key project stakeholders, including Council members, Project Sponsor, and CMT.

I PROJECTSTATUSREPORT

1.1 Project Status Report Details

A) Design & Construction

The design is currently at 90%. The drawings have been reviewed by Parkin Architects for architectural, structural, electrical and mechanical compliance. Drawings have also been reviewed by the accessibility consultant, the Kingston Frontenacs and the Kingston and District Sports Hall of Fame. Comments and City's position have been communicated to Ell isDon.

EllisDon is aiming at achieving close to 100% of the design in February. There may be a few changes in the interior design in February and March 2007.

Kingston and District Sports Hall of Fame Revisions have been made in the design to incorporate storage space with an office within a 600 square feet area. The area was requested by the Hall of Fame since it is located close to an elevator access. This change consists of moving a wall and therefore it is not anticipated that there will be any additional cost for this change. This will be confirmed in writing by EllisDon. The revisions in design have been communicated to the Kingston and District Sports Hall of Fame.

6000 Seats In December 2006, EllisDon provided an estimated cost to add an additional 1000 seats. The estimate was provided in two phases:

1. lnfill structural precast only and related structural modifications, design fees. This would provide the additional structural floor space only but exclude any additional building service accommodations for the additional 1,000 occupants - $41 0,000.

211 212007

86

COUNCIL MEETINGO 6 FE6 2 '07


2. lnfill structural work as well as additional seating and impacts to building services of the additional 1,000 occupants including mechanical units and plumbing fixtures - $900,000.

EllisDon recently encountered some structural challenges and is proposing a revised estimate of $350,000 to ensure structural precast and slab infill.

It should be noted that construction related to the expansion of seats after the opening of the facility would have an impact on the operations and possibly the annual operational revenues.

There are no funds in the approved budget to cover this cost. Staff believes that there may be an interest in the business community to provide financial support for this expansion.

Interior Design The City is working with Brisbin Brook Beynon Architects (BBB) to complete interior design concept of the facility. BBB is the architectural firm retained by EllisDon for the design build contract. BBB will provide additional support to the City to coordinate way finding signage within the facility, interior finishedmaterials, colours, displays and design of club lounge, concessions and sports cafe. BBB will also consult with Kingston Frontenacs, Kingston and District Sports Hall of Fame, the arts community and other key stakeholders to ensure that all areas and displays are well planned and coordinated within the entire facility. The consultation process has started and will continue in February.

Contemplated Change Notice The City submitted its first contemplated change notice for the catwalk and flygrid for a total of $800,000. The cost for catwalk and flygrid was presented by EllisDon as an additional option to the base building in its May 2006 proposal. During that same month, Council approved the catwalk and flygrid within the project scope as well as the necessary funds within the $41.77 budget. This amount was not part of the base building contract and was therefore introduced as a contemplated change notice in order to implement council's direction. This change order does not affect the contingency fund. There is a process to track all contemplated change notices.

Other change notices anticipated for the project include: 1. An upgrade to the refrigeration system from 120 tonnes to 155 tonnes.

It is anticipated that this change will cost approximately $1 2,000.

211 212007

8 7

COUNCIL MEE3 N G G 6 t t 8 2 0 '07


2.

3.

4.

5.

Ecology units for two concessions to provide a proper ventilation system. The cost is anticipated to be approximately $140,000. HVAC system for restaurant area is currently not in base building. This is required within the base building even if a third party were to operate the restaurant. The estimated cost is $1 50,000. Interior design work including renderings of the interior bowl and suites. This work is estimated around $98,000. November costs for environmental work on site including Pinchin Environmental and Scott Industrial confirmed at $1 60,000. It is anticipated that the environmental costs for the month of December will be slightly higher considering the amount of contaminated soil and water encountered during that period. It is estimated that the December and January costs will be at least $300,000, for a minimum total of $450,000.

These change notices are anticipated and have not yet been issued. City staff are waiting for details on pricing and scope of work. As per project procedures, any change notice over $50,000 and within the scope of project and budget will be approved by the Oversight Committee. Any change notices not within budget and scope of the project will be brought to council for approval.

The current anticipated change notices could total up $850,000. These change notices, should they be issued, would be funded from the project co n t i ng e ncy .

Construction EllisDon has completed all caisson work. Work on concrete foundations and core walls, which includes formwork and rebar, has also recently started and is scheduled to be completed in March 2007. EllisDon obtained its structural permit in December. Preparation work for the underground plumbing started in January.

Steel delivery, by Benson Steel, has been delayed from January until mid February. This represents a delay of about one month for steel work. Steel erection is scheduled for February lgth. Although the steel has been delayed, EllisDon has shifted some tasks in its schedule and has allocated additional resources to the project in order to maintain a substantial completion for December 2007. Arcturus/SMG will require a few weeks after occupancy to install and test all equipment as well as to train staff. The first Kingston Frontenacs game is planned for January 1 8th, 2008.

211 212007

8 8

COllNClL N I & ~ n ' h G 0 6 i- t B L I) '07


The Cataraqui Archaeological Research Foundation is monitoring sensitive areas, as identified in the design build contract, during foundation work. With the caisson work completed, the only area remaining that requires monitoring is the excavation on the north east of the site. It is expected that this work will happen within the next two weeks .

Furthermore, EllisDon retained the services of Pinchin Environmental/Scott Industrial who provided constant monitoring on site during drilling of caissons and foundation work. This process was required by the Waste Management Plan and Health and Safety Plan included in the design build contract. Samples of soil and groundwater removed from the site were tested for contamination. Pinchin also conducted on-site testing with air monitors. With the caisson work completed, Pinchin Environment and Scott Industrial will only be on site as required.

B) Site Plan

Noise Study EllisDon recently revised its concert noise study based on additional information on building finishes. The original noise study was developed without a lot of critical information on materials to be used in the construction of the Sports and Entertainment Centre. The original sfudy showed a significant impact outside of the facility parameter with the noise impact as high as 65 dBA in the Fort Frontenac area (based on 5ft above grade). The noise impact cannot exceed 50 dBA as per Ministry of Environment regulations. 5OdBA is equivalent to noise generated from a typical conversation.

The revised study includes a change in occupancy as well as more detailed information on construction material being used to build the facility. The revised study shows that most of the areas outside of the facility parameter are at 50 or 55 dBA. There is one small area that is at 60 dBA.

Staff and EllisDon are aware that the noise level still needs to be reduced to 50 dBA to meet Ministry of Environment regulations. Factors that should be taken into consideration that will help EllisDon in meeting the Ministry of Environment regulations include:

1. The study is based on concerts with a source of 105 dBA. This information is being revised to ensure that the sound at source used is appropriate for the average concert. A different sound at source could

211 212007

8 9


possibly have an impact on the noise levels generated outside the facility. It should also be noted that noise levels generated from concerts is not stable and would never be at these extreme levels for a whole concert.

2. The interior acoustical treatment design is not yet complete. The design is at 90% completion. Most of the interior design will be completed in the remaining 10%. It is possible that as sound reducing elements are added, sound transmission levels will be decreased so ,

that the maximum noise level outside of the facility parameter will be 50 dBA.

Next Steps - Noise Impact

Complete peer review of concert noise study and provide proper mitigation to reduce noise level to 50 dBA. Critical areas are around Fort Frontenac and the condominiums which are currently at 50 and 55 dBA levels. EllisDon will also submit a revised mechanical unit noise study in February 2007 as they recently completed the selection of mechanical units.

Accessibility & Parking During the site plan process, many concerns were expressed related to the availability and location of accessible parking and drop off/pick up locations for individuals with disabilities. Staff worked with members of the Municipal Accessibility Advisory Committee and a consultant to review all options and draft recommendations to address the issues and concerns. 'On January 26'h staff met with the Accessibility Committee to present recommendations. On February gfh, the Committee supported the following recommendations with a few amendments.

RECOMMENDATION: BARRIER-FREE PARKING

Provide Barrier-Free parking in four (4) municipal parking lots within approximately 200 metres of the KRSEC. These lots are specifically: Barrack Street, Drury, Frontenac, and King & Queen Lots. Seven (7) Barrier-Free spaces exist in the three existing lots and on-street. At least twelve (12) more spaces will be provided, during events, at the Frontenac Lot. Two (2) Barrier-Free Van spaces will also be provided here. Based on monitoring, up to two (2) more Van spaces are possible here.

2/12/2007

9 0

Proiect Status ReDort - Kinaston Reaional S~or ts and Entertainment Centre

Upgraded standards for the design and maintenance of these spaces will be applied to these public lots. Control of these spaces will be provided by bylaw enforcement.

The Committee recommended that all parking spaces in Frontenac lot have the larger dimensions.

RECOMMENDATION: DROP-OFFIPICK UP LOCATIONS

Provide a dedicated and signed the bus lay-by in the bus area on the north side of the Centre adjacent to the Club Entrance for Accessible public transit shuttles. Provide a dedicated and signed drop-offlpick-up location for private vehicles on the south side of Barrack Street adjacent to the King Street signalized crossing. Upgraded standards for the design, signage and maintenance will be applied to these Drop-Off/Pick-Up locations. Control of the Drop-off/Pick-up will be provided by bylaw enforcement. Upgrade signalized Crossings at King and Barrack to include sonic directional indicators and tactile warnings on curb ramps.

RECOMMENDATION: ACCESSIBLE ROUTES Provide Accessible Routes from the four (4) designated municipal parking lots providing Barrier-Free parking within 200 metres of the Centre. Upgraded standards for the design, signage and maintenance will be applied to these Accessible Routes. If costs to upgrade all Accessible Routes exceed the municipal budget or if the Routes cannot be maintained, then all nineteen (19) Barrier-Free parking spaces and Two (2) Van spaces (plus possible future Van spaces) or part thereof must be provided in the Frontenac lot with an Accessible Route crossing Barrack Street at the signalized intersection. These upgrades should be feasible within a 48 month time frame.

The Committee also recommended that staff bring back more information on the implementation of those measures and that all measures be reviewed by staff and the Committee 12 months after the opening of the facility.

C) Management & Operations

Operations Agreement

211 212007

91


The City and Arcturus/SMG have signed the management and operations agreement. Arcturus SMG is currently working on pre-opening and marketing of the facility and programming.

Arcturus/SMG will act as an agent of the City and has agreed to achieve a net operating revenue of $ I . lM for the first year of operations. This net operating revenue benchmark will be indexed at 2% CPI on a yearly basis for the remaining of the contract term (4 years). The average of this net operating revenue will be used to cover the principal and interest payment of the City’s debenture. This yearly revenue is allowing the city to borrow $21.3M at 5.5% interest rate over a 30 year period.

Arcturus/SMG will receive a yearly management fee of $125,000. This fee has been factored in the expenditures of the business plan, which still provides for net operating revenue of $1 . I M for the first year of operations. Arcturus/SMG will also receive a quantitative incentive fee equivalent to 15% of any revenues above the net operating revenue benchmark. The agreement also provides for a qualitative incentive fee which is based on ArcturudSMG’s yearly performance with community relations and tenanthser relationships.

Naming Rights On January 23 staff presented to council a proposed process for the naming rights of the Sports and Entertainment Centre. Council approved the following process to award naming rights of the Sports and Entertain men t Centre:

1. Issue a public expression of interest, providing local companies with a time frame of two weeks to submit the name of their proposals to purchase naming rights. The expression of interest document will be prepared by Wakeham and Associates to ensure that it meets sponsorship and advertising industry standards.

2. Any proposals received from local companies will be forwarded to Wakeham and Associates for review. These proposals will be reviewed based on specific criteria developed by Wakeham and Associates. The list of criteria will be provided to council for information prior to the awarding of naming rights.

3. Should any of the proposals meet criteria, Wakeham and Associates will then contact the companies and initiate negotiations. At the same time, Wakeham and Associates will approach some of its contacts to identify any potential interest in the national market.

211 212007

9 2


t

4. Once negotiations are complete, Wakeham and Associates will present a detailed report with a recommended company for council approval.

Base Building LEED Silver

City Fees Site Services Furniture, Fixtures &

Catwalk & Flygrid

Council also requested that monthly updates of the process be provided and that the award process be presented to council through a two step process.

Budget Dec. 31 30,065,000 3,701,817 1,920,000 24,443,183 1,200,000 0 0 1,200,000 800,000 0 800,000 0

1,615,000 1,042,511 0 572,489 1,998,000 1,476,795 493,640 27,565

D) Budget The following table provides a financial overview of the approved budget, the actuals as of December 311 2006, the amounts committed to the project until January 31’ 2007 and the balance remaining for the project. It should be noted that the year end is not yet closed and therefore the actuals could fluctuate slightly. As of December 31, the City spent a total of $7,134,106. This amount does not include EllisDon’s December invoice ($960,000) and the estimated January invoice which are in the committed column.

E Budget Items I Approved 1 Actuals I Committed I Ba I a nce

Equipment

Admin. Construction Mgmt. & Pre-opening

Base Building LEED Silver

2,973,000 0 0 2,973,000

1,470,000 762,983 56,500 650,517

Catwalk & Flygrid Citv Fees

Ho no ra ria Contingency Base

Site Services Furniture, Fixtures

150,000 150,000 0 0

Building TOTAL

1,200,000 800.000

1,500,000 0 850,000 650,000 $41,771,000 $7,134,106 $4, I 20,140 $303 1 6,754

1,615;OOO 1,998,000

Dec. 31 3.701.81 7

0 0

1,042,511 1.476.795

0

As of December 31, an estimated amount of $11,254,246 has been spent and/or committed to this project. This is equivalent to about 27% of the project’s budget. It should be noted that a portion of these costs are related to site servicing ($1.9M), which occurred prior to building construction and a considerable commitment of the contingency fund. Considering that the project started in June 2006 and is to be completed in

211 212007

93

Proiect Status ReDort - Kinaston Reaional S D O ~ ~ S and Entertainment Centre

January 2008, the project is about 36% complete. This is explained by the fact that most significant construction expenditures occur in the middle and at the end of the project.

According to project management practices, there should not be more than 15% of the contingency spent or committed at this point in the project. There is currently about 56% of the contingency fund committed to cover base building requirements and environmental costs.

Financial Status & Contingency In November 2006, the new Director assigned to the Sports and Entertainment Centre, with the support of PMX Inc. Project Management, initiated a financial review of the approved budget and financial requirements to make the project viable.

It was identified that contingency funds would be required to cover base building requirements and other project requirements. Details of all required expenditures are being finalised as well as potential sources of funding. Detailed information is being provided through the budget update report.

It is critical that the facility be fully functional and that the contingency fund not be spent to meet basic requirements of the project.

E) Risk Management - mitigated and potential risks

0 Archaeological monitoring of sensitive areas on site is occurring during the foundation construction phase. CARF will be monitoring the excavation work in the north east area of the site within the next weeks. It is anticipated that this will finalize the monitoring process.

0 EllisDon has provided cost estimates for the services of Pinchin Environmental and Scott Industrial. These costs are for the implementation of the Waste Management Plan and Health and Safety Plan during foundation work. Estimated costs provided by EllisDon could be up to $450,000 depending on' the time required for foundation work and the amount of soil and water to be disposed of under the waste management plan. The cost for November is about $160,000. It is expected that the costs for December and January will be much higher. With the caisson work completed, Pinchin Environmental and

2/12/2007

9 4

Proiect Status Report - Kingston Regional S~or ts and Entertainment Centre

Scott Industrial will be on site only as needed. The costs will have an impact on the project contingency budget.

The review of approved budget and required funding to meet base building requirements has identified variances. Staff and the project manager are finalizing details of all furniture, fixtures and equipment required to make the facility functional as per the RFP. The details will be reported back to council during the budget process. It should be noted that these figures will not include the additional 1000 seats and fit out of Restaurant and Sports Cafe areas.

EllisDon has submitted an updated construction schedule with substantial completion in December 2007 and a first event in January 2008. EllisDon had to make a few adjustments and compress some of the work in order to keep the same completion date. EllisDon has guaranteed this date for the 2008 Memorial Cup bid submission in February 2007.

The final building permit will only be issued with site plan approval. EllisDon still needs to address the mechanical noise impact issue. It is expected that revised information on both the concert and mechanical noise will be available in February 2007. City staff are working with the Accessibility Committee to resolve the accessibility issues. It is expected that these should be resolved by mid February at which time EllisDon will require its building permit.

The City has retained the services of architects and electrical and mechanical engineers to complete compliance reviews of the drawings provided by EllisDon. The reviews are to control the quality of the proposed facility. Funds were budgeted in professional fees.

The City has established some procedures and control for the project including a written process to control any design changes to the facility. An internal invoice tracking system has been developed and coordinated with Finance Department accounts. All invoices are reconciled with the Finance Department on a monthly basis.

0

0

0

0

0

F) Major Changes

2/12/2007

95


Date: 1 02/09/2007

No changes in scope to report. Contemplated change notice #001 issued by the City was approved by council and budget on May 30, 2006.

Reporting Period: 01/01/2006 to 01/31/2007

G) Issues

Issuance of structural permit

Arcturus/SMG needs to provide a revised schedule of its pre- opening work which will include the selection and purchase of Furniture, Fixtures & Equipment. This schedule will be integrated with the EllisDon and City schedules.

City and ArcturuslSMG need to retain the services of a third party to operate the restaurant area and Sports Cafe to ensure finishing, services and use of the space. Budget requirements and levels of service need to be reviewed. Staff will bring back information to council.

1211 512006 100% On schedule

1.2 Project Status Report Template

'repared By: -anie Hurdle

'roject Overall Status: 2onstruction schedule has been revised and EllisDon has compressed some of the work in irder to achieve substantial completion in December with a first event in January 2008. 3ased on this revised schedule, the construction is on schedule. Actual budget spent is ower than the proposed cash flow schedule which was based on the original construction schedule. All agreements and contracts are executed and significant progress has been nade in the design of the facility. All schedules need to be combined into a master project xhedule. This will be done in the next month.

Milestone Deliverables performance reporting

Milestone 1 - Construction & Design I 0 Caisson Work I 12/22/2006 1 100% 1 On schedule I

9 6

COUNCIL MEETING0 6 FEE 2 0 '07

Interior design

0 Address accessibility

90% design drawings

meetings

issues


01 /20/2007 100%

01/26/2007 100%

11/30/2006 100%

On schedule

On schedule

On schedule

Milestone 2 - Operations

0 Signing of operator contract

Naming Rights Package Report to Council

0 Develop Suite Sales Package

Plan for procurement of FF&E for arena and Food and Beverage

1 1 /30/2006

01 /23/2007

01 /I 5/2007

12/15/2006

100%

100%

80%

85%

Behind schedule

On schedule

Behind schedule

Behind schedule

211 212007

9 7

COUNCIL MEETINGO 6 FEE 2 0 '07


Milestone Deliverables scheduled for completion over next period

Milestone 1 - Construction & Design

0 Obtain direction on accessibility issues

02/09/200 7 75% On schedule

02/28/2007 70% On schedule 0 100% Design Drawing

0 Meetings and process for interior design

02/28/2007 50% ~ ~~

On schedule

Beginning of steel erection

02/15/2007 0% On schedule

0 Review of concert & mechanical noise studies

02/12/2007 50% On schedule

Milestone 2 - Operations ~ ~~~~

0 Naming Rights Process & final approval

02/06/200 7 90% On schedule

0 Develop draft policy for community suite allocation

02/28/2007 On schedule 10%

0 Develop Suite Sales Package

01/15/2007 80% Behind schedule

~

Behind schedule

Behind schedule

Suite Lottery 50% 0 2/2 8/2 0 0 7

02/20/200 7 85% 0 Plan for procurement of FF&E for arena and Food and Beverage

211 212007

9 8

COUNCIL MEETINGO 6 FEE 2 0 '07


Project impact of milestone success or failure for project remainder

None at this point

2 PROJECT

Prepared by

Approved by

STATUS REPORT APPROVALS

Lanie Hurdle Project Director

v u

Proj$ct Sponsor

3 APPENDICES

3.1 Contingency Flow Chart

211 212007

9 9

COUNCIL METIN

GO

6 FEB 2 0 '67

x n a Z

w a a

fi S 0

0

7 r

0

0

r

0 a

0

co

0

m 0

hl

0

Y 2 Y

b 0 0

nl C

m 7

100

project status report - cityofkingston.ca … · project status report project name: kingston...

Documents