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15. MAPLE GROVE
WORKS OPERATION WITHIN KANATA WEST CONCEPT PLAN LE DÉPÔT MAPLE GROVE DANS LE CADRE DU KANATA WEST CONCEPT PLAN |
Committee Recommendations AS AMENDED
That Council approve:
1. Confirmation that a minimum 16 acre
parcel will be retained by the City for the continued operation and
redevelopment of the Public Works and Services (PWS Works Facility) at 1655
Maple Grove; and
2. That
staff be directed to bring forward a report to the Corporate Services and
Economic Development Committee by Q4 2009 on the proposed disposition of
“Parcel 3” with options for the proceeds of the sale to be applied to the
debt-financing fund used for the construction and relocation for the works
operation on the property or that it be used for fund the site acquisition,
design and construction of the alternate snow dump.
Recommandations MODIFIéEs du comité
Que le Conseil approuve :
1. la
confirmation qu’une parcelle d’au moins 16 acres sera retenue par la Ville
pour le fonctionnement et le réaménagement continus de Services et Travaux
publics (dépôt de STP) au 1655, Maple Grove; et
2. que l’on demande au personnel de présenter au Comité
des services organisationnels et du développement économique d’ici le quatrième
trimestre de 2009 un rapport sur la disposition proposée de la
« parcelle 3 », y compris des options pour que les recettes
découlant de la vente soient appliqués au fonds de financement par emprunt
utilisé pour la construction et la relocalisation du dépôt sur la propriété, ou
que les recettes servent à financer l’acquisition du site, la conception et la
construction de l’autre dépôt de neige.
DOCUMENTATION
1. Executive Director's report (Business
Transformation Services) dated 20 November 2007 (ACS2007-BTS-RPM-0006).
2. Extract of Draft Minute, 19 November 2007.
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels et du
développement économique
and Council / et au Conseil
20 November 2007 / le 20
novembre 2007
Submitted by/Soumis par: Stephen A. Finnamore,
Executive Director, Business Transformation Services/Directeur exécutif,
Services de transformation des activités
Contact Person/Personne
ressource : Gordon MacNair, Manager, Real Estate Services
Real Property Asset Management/Gestion des actifs des biens immobiliers
(613) 580-2424 x
21217, Gordon.MacNair@ottawa.ca
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SUBJECT: |
within KANATA WEST CONCEPT
PLAN |
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OBJET : |
LE
DÉPÔT MAPLE GROVE DANS
LE
CADRE DU KANATA West CONCEPT PLAN
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REPORT RECOMMENDATION
That the Corporate Services
and Economic Development Committee recommend Council approve confirmation that a minimum 16 acre parcel
will be retained by the City for the continued operation and redevelopment of
the Public Works and Services (PWS Works Facility) at 1655 Maple Grove.
RECOMMANDATION
DU RAPPORT
Que le Comité des
services organisationnels et du développement économique recommande au Conseil
d’approuver la confirmation qu’une parcelle d’au moins 16 acres
sera retenue par la Ville pour le fonctionnement et le réaménagement continus
de Services et Travaux publics (dépôt de STP) au 1655, Maple Grove.
EXECUTUIVE SUMMARY
This report is intended to provide a revised site development strategy related to the Maple Grove Works Operation and Snow Disposal Facility considering four factors: a fire incident, consolidation strategy, service operation growth and the development objectives of the Kanata West Concept Plan.
The Maple Grove Works Operation site measures 24.7 hectares (61 acres) and consists of two primary properties with distinct addresses. The former City of Kanata works facility is located at 1635 Maple Grove Road and the former RMOC works facility at 1655 Maple Grove Road. In addition to these two properties, there are other ancillary facilities including a non-engineered Snow Disposal Facility +/-12 ha. (29.8 acres) and a 91-metre high telecommunications tower. The fire of 28 June 2006 seriously damaged the former City of Kanata facility. In the opinion of the consulting engineers, what remained of the 21,000 square foot main building was beyond repair and it was demolished in July 2007.
As a consequence of the fire, a long-term plan was envisioned that proposed a consolidation of the two facilities at 1655 Maple Grove Road and that the operations continue on a total land assembly of 6.43 ha. (15.9 acres). This strategy involves the addition of approximately 19,500 sq. ft. to the existing 28,000 sq. ft. building and represents best value in comparison to the costs associated with a relocation and reproduction of the service capacity critically required in this area. The cost for the building design and extension of municipal services ($1,050,000) was carried in the PWS 2007 budget. The cost to complete the renovations/addition ($5,116,000) is identified in the PWS budget for 2008.
During the consolidation plan to
replace the fire loss and to maximize current operations, all future growth
requirements were examined. Staff from Surface Operations, Supply Management
and Fleet Services reviewed the project and capital savings were identified in
dovetailing the growth requirements from these operations into the
reconfiguration and expansion of 1655 Maple Grove. An estimated “growth”
addition of 28,000 square feet (including unheated storage space) to the
project was identified. The growth construction costs for each department,
inclusive of equipment and fixtures, are identified in departmental capital
budget forecasts for 2008. These cost figures were
anticipated and documented in a report presented to Council 23 May 2007 (ACS2007-PWS-SOP-0003).
Council approved an amount of $4 million to
form part of the 2008 Draft Budget to account for the growth expansion of 1655
Maple Grove Works Facility. A Professional Quantity Surveyor refined the
estimate in August 2007. The Surface
Operations growth component is $2,605,000 with the Supply Management component
being $1,103,000 for a total of
$3,708,000.
The proposed plan (with or without the growth requirement) will include the relocation of the Snow Disposal Facility (SDF) to a new-engineered facility in the west rural area of Kanata. Public Works and Services will be moving forward with a 2008 budget allocation of $4.5 million for a site acquisition, design and construction of an engineered Snow Disposal Facility.
Although the fire incident has triggered a requirement to undertake a review of the operations and properties based at the Maple Grove Works Operation, it is also recognized that the Kanata West Concept Plan (KWCP), in which the City is a participant, influences any site development strategy associated with this property in the long term.
The Kanata West Concept Plan did not envision the continued operation of a City Works Operation. Discussions were held with Planning Transportation and Environment Staff and with the Kanata West Owners Group executive to confirm a continued municipal use of 1655 Maple Grove Road in the proposed reconfiguration. The retention of the site as a municipal facility is based on the ability to visually and acoustically isolate the 6.43 ha (15.9 acres) works facility from existing and future development, plus the completion of all other necessary site related work to reconfigure the site to function as Works Yard. The estimated site works cost to accomplish this is $1,526,000. The cost is carried in the PWS 2008 capital budget for Maple Grove. Recognition that the works facility can continue operations indefinitely is the key recommendation of this report.
City participation in the Kanata West Owners Group (KWOG) is a consideration in the site development process. In reconfiguring the Works Operation, the Maple Grove site will also provide for a future Storm Water Management Pond (SWMP) as detailed in the Kanata West Concept Plan. Consideration was given to a future transitway corridor, to be located along the western boundary as per the Master Transportation Plan. The City will be compensated by the KWOG at $617,740 per hectare ($250,000 per acre) for the +/-4.45 hectares (+/-11 acres) of developable land required for the SWMP and the transitway corridor. The estimate of future compensation in 2007 dollars is +/- $2.7 million. The balance of the site of 12.07 ha (29.8 acres) will be surplus to operational needs as of 2010 and could be either sold or retained for strategic purposes. In either scenario, the option would be to sell at market value to an institutional/educational user, or explore private/public partnership to promote broader community objectives. Applying the current KWOG land rate, a sale of the property would yield approximately $7.5 million in 2007 dollars.
SOMMAIRE
Ce rapport vise à élaborer une
stratégie révisée d’aménagement du site pour le dépôt et le dépôt de neige de
Maple Grove en fonction de quatre facteurs : un incendie, une stratégie de
regroupement, l’expansion du service et les objectifs d’aménagement du Kanata
West Concept Plan.
Le site du dépôt de Maple Grove compte 24,7 hectares
(61 acres) et comprend deux propriétés principales à adresses distinctes.
L’installation pour les travaux de l’ancienne Ville de Kanata est située au
1635, chemin Maple Grove et l’installation pour les travaux de l’ancienne MROC
est située au 1655, chemin Maple Grove. En plus de ces deux propriétés, il y a
d’autres installations auxiliaires dont un dépôt de neige non aménagé de
+/- 12 hectares (29,8 acres) et une tour de télécommunications
mesurant 91 mètres. L’incendie du 28 juin 2006 a gravement
endommagé l’installation de l’ancienne Ville de Kanata. Ce qui restait de
l’immeuble principal de 21 000 pieds carrés était irréparable selon les
ingénieurs consultants et a été démoli en juillet 2007.
À la suite de l’incendie, on a envisagé un
projet à long terme de regroupement des deux installations au 1655, chemin
Maple Grove et la poursuite des travaux sur un remembrement parcellaire
comptant au total 6,43 hectares (15,9 acres). Cette stratégie
comprend l’addition d’environ 19 500 pieds carrés à l’édifice actuel de
28 000 pieds carrés et représente le meilleur rapport qualité-prix
comparativement aux coûts qu’engendreraient la relocalisation et la
reproduction des capacités de service indispensables dans cette région. Le coût
engendré par l’aménagement de l’édifice et l’extension des services municipaux
(1 050 000 $) faisait partie du budget de 2007 de STP. Les frais
engagés pour les rénovations/l’addition (5 116 000 $) sont
indiqués dans le budget de 2008 de STP.
Dans le cadre du projet de regroupement visant
à compenser les pertes subies à la suite de l’incendie et à maximiser le
fonctionnement actuel, toutes les exigences touchant à l’expansion future ont
été révisées. Le personnel des Opérations de surface, de la Gestion de
l’approvisionnement et des Services du parc automobile ont révisé le projet et
ont soulevé la possibilité d’économiser du capital en associant les exigences
en matière d’expansion pour ces travaux à la reconfiguration et l’expansion du
1655, Maple Grove. Une addition en vue d’une « expansion » estimée à
28 000 pieds carrés (dont un local d’entreposage non chauffé) au projet a
été déterminée. Les coûts de la construction en vue d’une expansion pour chaque
Service, en tenant compte du matériel et des appareils, font partie des prévisions
du budget d’investissement du Service pour 2008. Ces coûts étaient prévus et
inscrits dans un rapport présenté au Conseil le 23 mai 2007 (ACS2007‑PWS-SOP-0003).
Le Conseil a approuvé un montant de 4 millions de dollars au projet de
budget de 2008 pour tenir compte de l’expansion de l’installation pour les
travaux au 1655, Maple Grove. Un contrôleur professionnel des quantités a
rajusté le coût estimé en août 2007. La composante de l’expansion des
Opérations de surface se chiffre à 2 605 000 $ et la composante
de la Gestion de l’approvisionnement se chiffre à 1 103 000 $,
pour un total de 3 708 000 $.
Le projet proposé (avec ou sans l’exigence
d’expansion) comprendra la relocalisation du dépôt de neige (DN) dans une
installation nouvellement aménagée dans la région rurale ouest de Kanata.
Services et Travaux publics ira de l’avant et utilisera 4,5 millions de
dollars du budget de 2008 pour l’acquisition, l’aménagement et la construction
d’un dépôt de neige aménagé.
Bien que l’incendie ait entraîné la nécessité
d’entreprendre un examen du fonctionnement et des propriétés au dépôt de Maple
Grove, on reconnaît également que le Kanata West Concept Plan (KWCP), auquel
participe la Ville, influence toute stratégie d’aménagement de site associée à
cette propriété à long terme.
Le Kanata West Concept Plan n’avait pas
envisagé le fonctionnement continu d’un dépôt de la Ville. On a discuté avec le
personnel du Service de l’urbanisme, du Transport et de l’Environnement et avec
l’exécutif du Groupe de propriétaires de Kanata-ouest pour confirmer la
poursuite de l’utilisation par la municipalité du 1655, chemin Maple Grove dans
le cadre de la reconfiguration proposée. On retient le site à titre
d’installation municipale en raison de notre capacité d’isoler du point de vue
visuel et de l’acoustique les 6,43 hectares (15,9 acres) des
aménagements actuels et futurs et de notre capacité de compléter tous les
autres travaux nécessaires liés au site visant à le reconfigurer pour qu’il
serve de cour des travaux publics. On estime que ces travaux coûteront
1 526 000 $. Les coûts sont reportés au budget d’investissement
de 2008 de STP pour Maple Grove. La recommandation clé de ce rapport consiste à
reconnaître que l’installation pour les travaux pourra poursuivre ses activités
de façon indéfinie.
On tient compte de la participation de la Ville
au Kanata West Ownership Group (KWOG) dans le processus de réaménagement du
site. En reconfigurant le Works Operation, le site Maple Grove rendra également
possible l’aménagement éventuel d’un bassin de rétention des eaux pluviales tel
qu’il est précisé dans le Kanata West Concept Plan. On a également tenu compte
d’un futur corridor de transport en commun, qui sera situé le long de la
frontière ouest conformément au Plan directeur des transports. La Ville
obtiendra une compensation de la part du KWOG de l’ordre de 617 740 $
par hectare (250 000 $ par acre) pour les +/- 4,45 hectares
(+/-11 acres) de terrain aménageable nécessaire pour le bassin de rétention
des eaux pluviales et le corridor du transitway. On estime que la compensation
prochaine en dollars de 2007 sera de +/- 2,7 millions de dollars. Le
reste de l’étendue du site de 12,07 hectares (29,8 acres)
représentera un surplus pour les nécessités du service à partir de 2010 et pourrait
soit être vendu, soit être conservé pour fins stratégiques. Peu importe le
scénario, on pourrait vendre à la valeur du marché à un utilisateur pour fins
d’usage collectif ou éducatif ou envisager un partenariat public-privé afin de
promouvoir des objectifs communautaires de plus grande portée.
En vertu du taux d’évaluation foncière actuel
applicable au KWOG, la vente de la propriété rapporterait environ
7,5 millions de dollars en dollars de 2007.
BACKGROUND
Operational Features
The Maple Grove Works Operation is 24.7 hectares (61 acres) and consists of two primary properties with distinct addresses (refer to Annex A). The former City of Kanata works facility was located at 1635 Maple Grove Road (herein referred to as "Site A"). The former RMOC works facility is housed at 1655 Maple Grove Road (herein referred to as "Site B"). In addition to these two properties, there are other ancillary facilities including a snow disposal operation on the combined site. The attached Annex “A” outlines both properties and shows the original building configuration. The Public Works and Services Department deploys from this site a fleet of vehicles and staff in support of Surface Operations, covering areas within Wards 4,5,6 and 23.
Site "A" - 1635 Maple Grove Road
Site "A" consists of approximately 5.26 hectares (13 acres) and had been improved with a building of 21,000 square feet that was constructed in 1992 on a well and septic system. The fire-destroyed building had provided four fleet service bays, one washbay, heated equipment storage and staging areas for parks operations, workshop, parts storage and handling and common ancillary spaces such as washrooms and lunchroom. In addition, there are two pre-engineered metal storage structures not damaged in the fire, which can be relocated. We note that a portion of the site is in the flood plain of the Carp River and most of the site was to be part of the storm water management pond identified in the Kanata West Concept Plan.
Site "B" - 1655 Maple Grove Road
Site "B" consists of a building measuring 28,000 square feet constructed on a well and septic system. The structure houses the primary administration offices for fleet, parks and surface operations based in this service quadrant, a paramedic post (which has been relocated to a new site on Lord Byng Way), 2 Fleet Service vehicle repair and maintenance bays, one washbay, 5 primary double loaded (10 vehicle) bays and ancillary common spaces, such as the washrooms, locker rooms and lunchroom. This building and the salt/sand dome occupy approximately 4.5 hectares (11 acres).
Ancillary Facilities
In addition to the buildings, the Maple Grove Works Operation includes the site of a non-engineered Snow Disposal Facility (SDF) that occupies the rear area of approximately 36.5 acres. Although the SDF is scheduled to continue operations in the short term, PWS is planning to transfer the SDF to a new-engineered site at an alternate location. Funding for the construction has been identified in the Development Charges Bylaw. PWS has identified in the 2008 budget forecast an estimate of $4.5 million for land acquisition, design and construction.
There is also a 91-metre high telecommunications tower on this site that was erected under a contractual arrangement with Microcell and Bell Mobility. In addition to lease revenues from this arrangement, the City Fire Services Department has installed a communication dispatch repeater unit on the tower, thus ensuring effective emergency dispatch communication links.
Fire Incident
A fire that took place on 28 June 2006 severely damaged Site “A”. The Surface Operations, Fleet Services, Stores facility and equipment storage building located at 1635 Maple Grove Road suffered extensive heat damage to its interior core area resulting in ancillary damages to the principal structural elements and associated building heating, ventilation and support systems. An examination of the building by qualified structural engineering and mechanical/electrical engineering consultants confirmed that the building would require extensive and costly repairs deemed to be beyond a reasonable re-investment strategy. A demolition of the remainder of the building was completed in July 2007 at cost of approximately $85,000.
RPAM staff worked with staff from Fleet Services, Surface Operations, and Supply Management to retrofit part of the adjacent municipal garage at 1655 Maple Grove Road in order to recover a portion of the service capacity lost in the fire. This enabled the continuation of essential service delivery to the community. The re-adaptation of the City building at 1655 Maple Grove cost $407,000 and included upgraded ventilation, cabling, telephone, furniture, paving and plug-ins and miscellaneous equipment.
The move of operations to Site “B” recaptured only a portion of the service capacity lost in the fire. The requirement to provide basic fleet maintenance services has been compromised by sub-standard space requirements within Site B, as well as the displacement of area necessary for Surface Operation Roads Division. The Surface Operations Parks Division could not fit within the existing confines of the reconfigured Site B. This necessitated securing temporary space within the geographical area to accommodate equipment storage and associated administrative space. RPAM undertook a search for a facility located within the geographic parameters established by the service area of the Surface Operations - West Parks Administrative Unit, based at the Maple Grove facility. The search resulted in the identification of an opportunity to lease space within a multi-tenant office/light industrial building located at 5977 Hazeldean Road in the Stittsville area. The premises consist of a vacant warehouse section containing 10,237 square feet and an adjacent second floor administrative area containing approximately 4,500 square feet for a combined area 14,737 square feet.
An agreement was negotiated in the fall of 2006 with the building owner (Canada Mortgage and Housing Corporation Pension Fund) for a three-year term with one-year options. The rental cost for the lease term is $451,740 net ($150,580 per annum) plus $30,000 in additional costs per annum to cover realty taxes and other operating costs. The City also incurred costs of approximately $205,000 for user specific fit-up and for other City requirements such as security and telephone systems. Considering the time constraints, the Executive Management Committee authorized staff on 20 December 2006 to proceed with the lease at 5977 Hazeldean Road. This information was also outlined in the report to Council on 23 May 2007 (ACS2007-PWS-SOP-0003).
Although the fire incident has triggered a requirement to undertake a review of the operations and properties based at the Maple Grove Works Operation, it is also recognized that the Kanata West Concept Plan (KWCP), in which the City is a participant, influences any site development strategy associated with this property in the long term. The initial planning for the KWCP proposed the ultimate relocation of the Public Works operation from the Maple Grove Road property and promoted a broader redevelopment as per the concept plan. The implications of a forced disengagement from the site, and the possible timeframe, has been examined by staff and supporting consultants in response to concerns regarding the costs and service delivery impacts and the direct costs associated with a complete disengagement. The costs and service impacts are discussed below.
DISCUSSION
Key staff from Public Works and Services, Planning Transportation and Environment and Business Transformation Services assembled to map out a strategy to best leverage the Maple Grove asset. PWS, expanding on its Strategic Alignment Initiative Program, sought to complete a facility rationalization and consolidation plan in which the Maple Grove facility was considered a key asset. PTE objectives focused on the Kanata West Concept Plan and the future development of the community as a whole. BTS, through RPAM, sought to ensure the best interest of the City were achieved both as a service provider and as a landowner with in the community. Three separate strategies were identified.
The recommended site development strategy for Maple Grove is to ensure the continued operation of the Works Operation, albeit in a much-altered state occupying approximately 25% of the combined site. This strategy complies, in part, with the overall planning initiatives and releases 75% of the site for redevelopment as per the Kanata West Concept Plan.
Though the KWCP proposed a complete PWS disengagement from the neighbourhood, the need to retain an operations presence on Maple Grove Road was initially confirmed in a major asset rationalization report produced by the consulting firm of KPMG. This report examined the deployment of surface operations and fleet maintenance services throughout the City. The Public Works and Services Department has completed its research through a surface operations re-deployment initiative. The results were confirmed within the report to Council on 23 May 2007 (ACS2007-PWS-SOP-0003). This Study acknowledged the role and importance of the Maple Grove Works Operation as a vital component of PWS service delivery plan.
The recommendation to retain a functional works yard at the Maple Grove Road site was also reinforced by RPAM upon examining the costs to reproduce a similar facility on an alternative site. Furthermore, as a consequence of the PWS Strategic Alignment Initiative completed in early 2006, the Maple Grove Operation was confirmed as a permanent Area Headquarters facility for the Surface Operations Branch.
With the loss of the main building on Site "A", the revised site development strategy required a detailed review by the various departments of PWS operating at Maple Grove. The current functional assessment, based on lost service capacity, suggests an operational consolidation at Site "B" and the construction of up to six new bays that incorporate proper height, ventilation and base building system requirements in order to provide a long-term property solution. In addition, the requirement for two pre-engineered structures, one of which will be heated, is also anticipated. The proposed consolidation at Site "B" will result in a building construction program for lost capacity of 19,500 square feet. The design costs to complete the consolidation are estimated at $550,000 (the remaining Consulting Fees for the Contract Documents and Construction Administration are not included). The design is optimized if the site were serviced with municipal water and sanitary sewer. The costs to connect are estimated at $500,000. These cost items totalling $1,050,000 were carried forward in the 2007 budget by PWS as part of the Maple Grove rationalization strategy. The capital construction costs at Site “B”, in order to recover the lost service capacity, are estimated by RPAM at $5,116,000. This estimate is being brought forward by PWS in the 2008 budget – to permanently retrofit the facility to replace the space lost from the fire.
The withdrawal from Site “A” and the reconfiguration of Site “B” to accommodate a consolidation on Site “B” will reduce the works operation to approximately 6.43 ha or 15.9 acres (refer to Annex B – Parcel 1). The reconfigured site would function more efficiently, and despite the reduction in land area, would remain sufficient for the future relocation or installation of additional pre-engineered storage facilities and operational activities such as materials handling, staging, general circulation and temporary storage. The advantage of integration would result in a greater efficiency in the delivery of operational services for PWS.
From an operating budget perspective, the continued on-going operation and consolidation of public works activities at the Maple Grove Works Operation will result in lower operating costs than relocating elsewhere. Should the operations based at Maple Grove be relocated, it is expected that deadheading costs incurred by PWS will rise substantially. (Deadheading is defined as the amount of time that is consumed during normal operational practices that derives no actual service benefit. For example, if a salt truck services a 1 kilometre cul de sac, the return portion of the trip, where no salt is applied to the roadway, is considered a deadhead cost). Previous analysis led by KPMG indicated that increasing the radius 5 to 10 kilometres from the Maple Grove Works Operation would increase annual operational costs for PWS in the range of $50,000 to $100,000 for the summer period and $100,000 to $150,000 for winter operations (2003 dollars).
The continued operations of an expanded facility on 6.43 ha (15.9) acres represents best value in comparison to the costs associated with a relocation and reproduction of the service capacity critically required in this quadrant (refer to Annex “C” – Financial Implications – Post Fire Incident). In Option #1, the capital costs required to completely disengage from the site, remove and relocate the radio transmission tower, and reproduce the existing service capacity at the Maple Grove Works Operation elsewhere are estimated at $16.8 million including the acquisition costs for unserviced land. Alternatively, in Option #2, the cost to remain on site and rebuild, together with the lost opportunity to sell off the surplus land is estimated at $11.6 million. The Net Differential of $5.2 million represents the cost benefit to a continuance of operations at Maple Grove.
In the near term, additional roads, parks, pathways and waterways are slated for development to accommodate the growth of +17,000 new residents in areas around the Works Operation. By retaining a central location on Maple Grove Road, within the future community, this represents a further unquantified cost benefit, over the identified $5.2 million for future PWS operations vis-à-vis an alternate site outside of the community.
In addition to reconfiguring the property to replace the fire loss and to maximize current operations, all future City growth requirements were examined in an effort to be efficient with construction costs. Staff from PWS Surface Operations, Supply Management, Fleet, Comprehensive Asset Management, Real Estate Services and the Design and Construction Division reviewed the project with a long-term strategy to account for current and future growth pressures. Service delivery requirements were exceeding the capacity of both facilities at Maple Grove. There were significant savings identified by the group in dovetailing the growth requirements from operations into the reconfiguration at 1655 Maple Grove.
After extensive discussion and review by the client departments an estimated addition of up to 28,000 square feet to the project is identified to account for a growth component. Construction cost for the identified growth, inclusive of design fees, was apportioned at $2,605,000 for PWS Surface Operations, and $1,103,000 for Supply Management. The growth cost for Surface Operations reflects the addition 6 vehicle storage bays and heated/unheated pre-engineered storage buildings. The growth cost for Supply Management, General Stores reflects the addition of the equivalent of 2 bays of garage space within the existing building. General Stores distribution in the west-end is non-existent. The General Stores facility located in the east end on Swansea Crescent is over capacity. A west-end stores location will greatly improve efficiency of stores operations and materials handling distribution.
The construction costs for the
growth elements are identified in the 23 May 2007
report to Council (ACS2007-PWS-SOP-0003). Council approved a budget amount of $4 million to form part of the 2008 Draft Budget
for the expansion (growth) of 1655 Maple Grove Works Facility.
There are significant savings if both the replacement for the lost capacity in the fire ($5,116,000) and the growth requirements ($3,708,000) are completed simultaneously. The estimated additional costs if these projects were to be staggered amount to approximately $1,000,000. By completing both the fire loss and the growth elements at the same time the City would avoid further cost increases to account for the escalating costs of construction.
In recommending the retention of the Maple Grove Works Facility at the current location, staff is cognizant of the Kanata West Concept Plan, which envisions mixed development north of Maple Grove Road and residential development to the south. It should be noted that the total site encompasses 24.7 hectares (61 acres) and includes the operations associated with snow disposal. The consolidated site, including all growth forecasts, will be reduced to a functional operation of some 6.4 hectares (15.9 acres), excluding any further requirement for snow disposal operations.
Every effort will be made to ensure that the consolidated facility will be visually and acoustically isolated from the surrounding neighbours. A buffering/berming strategy will be considered so that the degree of isolation is superior to that of similar existing works facilities located in proximity to residential development. To the west of the property, the proposed transit corridor will meet that objective (refer to Annex “B” – Parcel “4”). The Transit Corridor will measure 0.31 ha (0.8 acres). To the east, a future storm water retention facility and the restored Poole Creek will provide an adequate buffer zone. Along the northern boundary a combination of fencing, berming and tree planting will screen the facility from future development. The projected cost to visually and acoustically isolate the facility from future development, reconfigure the works compounds, regrade the site suitable for heavy duty vehicles, provide storm water management, expand and re-configure the employee parking lot, provide site lighting, improve security measures and to address site-servicing modifications as a consequence of this requirement, is estimated at $1,526,000.
Site
Strategy - Snow Disposal Facility
PWS is planning to disengage from the northern portion of the site (Parcel 3, Annex “2”) operating as non-engineered Snow Disposal Facility (SDF) by the year 2010 as part of the overall site development strategy. The requirement to replace the Maple Grove SDF has been identified in long range planning. Funding has been identified in the City Development Charge By-Law for the relocation and construction of an engineered SDF. Once the Maple Grove SDF is closed all future truck travel and operational activity associated with this use will be moved off-site. A significant lead period is necessary in order to find, purchase and construct an alternate SDF. Real Estate Services Division has been tasked to acquire an alternate site of +/-30 acres with a potential buffer from any existing residential land uses. Funds of $4,500,000 for a site acquisition, design and construction are being carried in the PWS budget for 2008.
Site Strategy - Future Development Kanata West Concept Plan
RPAM will provide an update to Council in 2008 as to a strategic plan for the City’s overall land holdings within the Kanata West Concept Plan. This report describes how the proposed reconfiguration of 1635-1655 Maple Grove Road onto Parcel 1, Annex “B” follows the Kanata West Concept Plan (KWCP).
In relation to the entire Maple Grove property there are two separate land uses identified in the KWCP. The eastern part of the property (Parcel 2, Annex “B”) is identified as the location for a future storm water management pond (SWMP). The future pond and buffer flood plain land are located adjacent to Poole Creek and the Carp River. The total pond area and buffer is estimated at 5.87 ha (14.5 acres) and will service the immediate area and future residential land southwest of Maple Grove Road (principally under the ownership of Mattamy Homes).
The final design of the pond has yet to be determined. Under the Kanata West Cost Sharing Agreement the owners group will compensate for the loss of developable employment land, used for community infrastructure, at a rate of $250,000 per acre. The rate per acre is to reflect the approximate market value as of 2007 and will be adjusted over time. It is estimated that the City will the surrender +/-10 acres of developable land for the SWMP and thereby receive a payment of +/- $2,500,000 (2007 dollars). The timing for the development of the pond is anticipated in 5 to 10 years.
The demolition and removal of the built infrastructure at 1635 Maple Grove provides the City with an opportunity to strengthen its participation in the KWCP and ensure proper environmental stewardship. The revised site development strategy respects the adjoining waterways by properly integrating a storm water retention facility with additional buffering lands. The removal of the works yard will have the potential to facilitate an earlier development of the SWMP and reduce the development period for properties in the drainage catchment area. (non flood plain) required for this parcel of community infrastructure.
The balance of the site of 18.81 ha (46.5 acres) is designated in the Kanata West Concept Plan as a Mixed Use – Institutional/Corporate Campus Zone. The area consists of Parcels 1,3 and 4 as shown in Annex “B”. The intent of this designation is to accommodate a range of corporate and institutional use in a mixed-use setting that facilitates teaching and learning, technological transfer and innovation. The proposed zoning in the draft City of Ottawa Comprehensive Zoning By-law is split into two parts and recognizes the continuation of the PWS Works Operation on Parcel 1.
Parcel 3 is 12.07 ha. (29.8 acres) and backs onto Palladium Drive. It is designated as Mixed Use Centre in the Official Plan and zoned DR[1]-Development Reserve in the draft City of Ottawa Comprehensive Zoning By-law, with an exception to recognize the existing Snow Disposal Facility. This parcel represents a future development opportunity given the frontage along Palladium Drive. The site also has the potential for a transitway station at its southwest corner. Once PWS disengages from the SDF in 2010 the City has the option to sell to an institutional/educational user, explore private/public partnership to promote broader community objectives, or retain the site for strategic purposes. Though current market appraisals have not been completed on this component of the property, the application of the Kanata West Owners Group acreage rate of $250,000 generates a land value of +/-$7,500,000 (2007).
Parcel 4 considers the proposed Transportation Master Plan for the community including a north-south arterial extending north from Hazeldean Road. This future arterial road will run near the southwest boundary of the site. The north-south rapid transit corridor will essentially follow this route. It is estimated that a 12.19 m wide strip along the western boundary will be required generating an estimate area of 0.31 hectares (0.76 acres). Parcel 4 represents this allocation. As a piece of community infrastructure the City will be compensated for the loss of land by the KWOG in concurrent with the transit way construction circa 2015. The estimated compensation for the land in 2007 dollars is $190,000.
In conclusion, the retention of the PWS facility on Parcel 1 (6.43 ha or 15.9 acres), when acoustically isolated will not impact on the objectives of the KWCP. The reconfigured site provides the City with the most cost effective option to delivery critical municipal services and does not impact on the future development potential of the remaining lands.
Site Strategy Summary
To summarize, staff have consolidated a plan to leverage the Maple Grove asset to best meet service delivery objectives of PWS, the planning objectives of PTE and the corporate interest of BTS as the property owner. The revised site development strategies for the Maple Grove Works Operation consists of the following elements:
- Confirmation to retain a permanent Public Works Operations Operation on Maple Grove Road as part of a cost avoidance strategy vis-à-vis total disengagement and relocation to an alternate site;
- Capitalize on the impact of the fire incident to plan a reconfiguration of a PWS Facility on 6.43 ha (15.9 acres) for an area headquarters. (2008 Budget $1,526,000);
- Replace the lost fire capacity by constructing an addition of 19,500 sq. ft. to the existing building as part of the site reconfiguration process. (2008 Budget $5,116,000);
- Capitalize on the impact of the fire incident to simultaneously construct 28,000 sq ft. to consider growth requirements for Surface Operations, Fleet Maintenance, Supply Management and Parks. (2008 Budget $3,708,000);
- Satisfy the Kanata West Concept Plan objectives by visually and acoustically isolating the 6.43 ha works facility from existing and future development;
- Satisfy the Kanata West Concept Plan objectives by considering the future storm water pond and transportation plan in the reconfiguration strategy with the City to be compensated for the loss of developable community lands. (Future benefit of +/-$2.7 million 2007 dollars based on KWOG compensation formula);
- Short-term retention of the Snow Disposal Facility with a planned exit strategy to relocate facility within operational area. (2008 Budget $4,500,000);
- Once the disengagement of the SDF is complete (2010) the City has the option to retain land component of 12 hectares (29.8 acres) for strategic purposes or sell all or part of the asset at market value (Future benefit of +/-$7.5 million in 2007 dollars based on KWOG compensation formula).
ENVIRONMENTAL IMPLICATIONS
The redevelopment of 1655 Maple Grove will comply with City environmental policies. The demolition of 1635 Maple Grove and reinstatement of the site considered topography and surface drainage near the waterways.
The eventual removal of the snow disposal facility to an engineered site will address environmental concerns regarding the protection of the Carp River and Poole Creek watershed.
CONSULTATION
There has been consultation with all impacted departments within PWS to confirm the strategic requirements for a permanent Area Headquarters facility at Maple Grove.
Planning, Transit and the Environment Department have reviewed the most recent development strategy for the Maple Grove site, and have indicated that a reduced PWS operation visually and acoustically screened is compatible with the planning parameters for the overall KWCP with consideration given to future needs regarding the Transitway.
The Kanata West Owners Group executive committee has been briefed on the City’s strategy regarding the retention of 6.43 ha. for a PWS Works Facility.
There has been consultation with the Ward 6 & 23 Councillors.
There was no public consultation.
FINANCIAL IMPLICATIONS
Funds have been identified in the Public Works and Services, Surface Operations Branches draft 2008 operating and capital budgets relating to the Maple Grove Works Operation within the Kanata West Concept Plan.
Within the 2008 draft-operating estimate, the temporary lease/operating costs for the Parks West Facility totalling $180,580 has been identified.
Within the draft capital estimates, $10,350,000 has been identified for a fire retrofit, site consolidation strategy, service operation growth and the development objectives of the Kanata West Concept Plan. A further $4,500,000 has been included for the relocation of the Maple Grove Snow Disposal Facility, which includes land acquisition, design and construction.
SUPPORTING DOCUMENTATION
Attached as Annex “A” – Maple Grove Facility, Former Operational Land Use
Attached as Annex “B” – Maple Grove Facility, Proposed Reconfiguration
Attached as Annex “C” – Capital Cost Summary for PWS Disengagement
DISPOSITION
Following Council’s approval RPAM staff in concert with PWS and PTE staff will undertake the planning and consolidation of the PWS Works Operation at 1655 Maple Grove Road onto a reduced site of 16 acres.
ANNEX A
ANNEX B
ANNEX C
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Financial
ImplicationS (POST
FIRE INCIDENT) |
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Activity
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Expense
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Comment
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Option 1. DISENGAGEMENT – Relocate PWS
Facility on a 16 Acre
Operational Site
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Decommission
of Site
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Budgets includes allowance to deal with environmental risks. |
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Demolition Existing Building |
$615,000 |
Cost for existing of building, plus $350,000 to disassemble the tower. |
Land
Acquisition for a New Location
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$800,000 |
No compatible City owned sites. Search criteria-within 7-8 km. to control “deadhead” costs. Estimate of $40,000 per acre for +/-20 unserviced acres. |
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Soft Costs Land Purchase |
$150,000 |
Legal, surveys, real estate commissions, etc. |
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Replacement Building (Consolidation) |
$12,500,000 |
Based on 35,000 sq. ft. structure with 12,000 sq.ft. storage. Costs include moving, fit-up, security etc. |
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Relocation of 91m Tower |
$350,000 |
Location limited to 1km zone. |
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Replace Salt Domes |
$500,000 |
Required by Public Works (Excludes demolition). |
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Operational Costs -Annualized PWS Summer |
$550,000 |
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Operational Costs -Annualized - Winter |
$900,000 |
The KPMG deadhead cost for Fleet is estimated at$100,000 to $150,000 (Pg.75). NPV mid point of $125,000 @ 7% for 10 year term. |
Option 1
Total Relocation Costs
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Site Cost to
accommodate Kanata West Concept Plan |
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Municipal Services, Planning and Design |
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Building addition to 1655 Maple Grove
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Potential land sale of 16 acre site |
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Option 2. Total Redevelopment |
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Net
Differential |
$5,200,000 |
Estimated financial impact to relocating Works Yard Campus beyond 5km radius of current site. |