REPORT RAPPORT

DATE:	20 July 2010
TO/DEST:	Executive Director, Ottawa Police Services Board
FROM/EXP:	Chief of Police, Ottawa Police Service
SUBJECT/OBJET:	19 FAIRMONT AVENUE FACILITY – REQUEST FOR BUDGET INCREASE

RECOMMENDATIONS

That the Ottawa Police Services Board approve an increase in the capital budget for the leased premises located at 19 Fairmont Avenue by $490,000 (excluding taxes) to allow completion of interior renovations.

BACKGROUND

At the Ottawa Police Service Board meeting on 19 January 2009, the Board approved a lease for office space at 19 Fairmont Avenue for ten (10) years commencing 1 November 2009.  Additionally, the Board delegated authority to the Chief to complete all required tenant fit-up, project management, and furniture and equipment acquisition in an amount not to exceed $1,375,000.

As at 30 June 2010, a total of $786,781 had been spent or committed on major items such as design consultants, construction of the 3^rd floor and installation of the IT/ Telecom and security system infrastructure.  These expenditures and commitments, as compared to budget, are identified in Table 1.

Table 1

Summary of Expenditures to 30 June 2010

Budget Category	Approved Budget	Spent / Committed	Balance Remaining
Tenant Fit-Up	$575,000	$395,447	$179,553
IT/Telecom/Security equipment	650,000	308,826	341,174
Office Furniture	150,000	82,508	67,492
Total	$1,375,000	$786,781	$588,219

Table 2 provides a revised budget estimate for work at 19 Fairmont which identifies a need for additional funding in the amount of $490,000 to allow for project completion.

Table 2

Revised Budget

Budget Category	Approved Budget	Revised Budget	Additional Funding Requested
Tenant Fit-Up	$575,000	$1,282,000	$707,000
IT/Telecom/Security equipment	650,000	350,000	(300,000)
Office Furniture	150,000	233,000	83,000
Total	$1,375,000	$1,865,000	$490,000

DISCUSSION

Tenant Fit-Up

The original budget of $575,000 for design and construction of the space has proven to be insufficient.  This amount included both construction costs, as well as design and project administration.

When estimates for the original budget were compiled, decisions as to which sections would move to the Fairmont facility had not been finalized.  Following internal discussions and consultations, the following sections are now identified for relocation to Fairmont:

• Resourcing & Development (including HR)
• Finance
• Legal
• Professional Standards Section (PSS)
• Quality Assurance
• Corporate Planning

Quality Assurance and HR are already operating out of the Fairmont location.  The other sections are scheduled to be relocated there by the end of 2010.

These sections are selected based on a review of numerous factors such as interaction with other OPS sections and functionality if allowed to work independently.  Groups requiring minimal infrastructure relocation, minimal storage of operationally sensitive information and police equipment were also deciding factors.  Based on these and other considerations, the groups noted above were deemed to be the most easily relocated away from 474 Elgin Street when compared to other sections in the OPS.

Design planning to accommodate these identified tenants yielded tenant fit-up work which was not specifically included in the original budget estimates.  The space required the removal of old cooling equipment, the installation of baseboard heaters and the installation of partition walls and doors.  The Professional Standards Section requires interview and video monitoring rooms which are subject to strict sound transmission requirements.

Resourcing & Development requires meeting and conference rooms for conducting interviews and general work meetings.  Additionally, lockers areas are required for sworn members attached to these sections.  A weapon proving chamber is required to ensure the safe storage of firearms.  The parking areas have insufficient lighting and signage which has added to the budget shortfall.

Under the terms of the Lease, the Landlord secured competitive tenders on the majority of the aspects of the preliminary layout in November 2009.  Construction prices received as a result of the tenders increased approximately 10% since the original budget was approved by the Board.  Whereas these original tender results were received in late 2009, current prices indicate further increases of 4% to 10% in virtually all categories.

Additional design costs have been incurred in ensuring optimal use of the space.  Under the Lease, the Landlord provides Project Management services calculated at 15% of the cost of the subcontracted work as well as a 5% administration fee.  The OPS engaged Trefoil Inc. to coordinate the additional aspect of the project for items such as move management, environmental reviews, coordinating security and lighting requirements for the parking areas as well as coordinating the installation of the OPS telecom and the OPS security infrastructure.  Both of these design and project management items applied upward pressure on the overall project costs.

IT/Telecom/Security Equipment

Revised budget estimates for such equipment as VoIP telephones, data switches and routers, computer workstations, and ISMS security systems are $300,000 lower than the original estimate.  The primary reason for this difference is that existing computers from Elgin were relocated to Fairmont rather than acquiring new computers.  There was also existing security infrastructure made available by the Landlord to the OPS which has reduced the security infrastructure costs.

Office furniture

In order to facilitate the required tenant fit-up, all of the existing furniture had to be removed and cleaned.  The furniture will be reconfigured as necessary to reflect the OPS standards as much as possible.  An increase to the budget of $83,000 is due to additional furniture required to accommodate the higher number of staff moving to Fairmont than originally estimated.  As well, specific furniture requirements for interview and meeting rooms were not originally included in the estimates.

Evaluation of Alternative Options

In efforts to keep the costs within the original budget estimate, staff considered many factors and evaluated various options. 

• A phased occupancy for the relocation of the remaining sections was considered, with some sections moving in before the end of 2010 as construction is completed.  However, this approach was deemed impractical with ongoing construction traffic and noise, and the higher associated costs.
• The availability of suitable parking spaces near Fairmont is a limiting factor in determining which sections were selected to relocate
• Facilities standards and furniture requirements were reviewed with minor adjustments as deemed necessary to ensure efficiency of the existing space took priority over aesthetics.
• Design of space was kept as generic as possible for possible future re-use of space by other OPS sections.
• The space planning includes growth expectations in staff complement for the affected sections.

CONSULTATION

Public consultation is not required.

FINANCIAL STATEMENT 

The Police Service Board has approved a budget of $1.375 million, in Capital Project 904531, for the refit of the leased premises located at 19 Fairmont.  This budget was based on a Class D estimate in early 2009.  According to industry standards, the range of confidence for this category of estimate is considered to be +/- 25%, equivalent to a budget variance of $343,750.  An increase to the project budget, in the amount of $490,000, is being requested to allow for the completion of the refit project.

Funding for this increase has been identified from within existing Facilities Capital Projects.  Staff recommends that the budget increase be funded by a transfer from existing capital projects, as noted in Table 3.

Table 3

Transfer of Funds from Existing Capital Projects

Project	Budget	Spent / Committed	Balance	This Request	Available
903132 – Accommodation Master Plan	$  1,358,000	$1,318,835	$ 39,165	$  12,000	$27,165
904129 – 2007 Facilities Minor Capital	300,000	263,734	36,266	25,000	11,266
904522 - 2008 Facilities Minor Capital	500,000	383,202	116,798	110,000	6,798
903660 – Facility Strategic Plan	150,000	52,442	97,558	95,000	2,558
903800 – BASC 2006/2007	1,300,000	1,160,108	139,892	125,000	14,892
905089 – 2009 Security Upgrades	240,000	155,738	84,262	84,000	262
904134 - 2010 Security Upgrades	500,000	34,663	465,337	39,000	426,337
Total	$ 4,348,000	$3,368,722	$ 979,278	$ 490,000	$ 489,278

With Board approval of the funding sources listed above, a budget adjustment will be requested to consolidate the funding identified for one time fit-up costs within Capital project 904531 – “Operational Fit-up 2008”.

CONCLUSION

The leased premise at 19 Fairmont Avenue is an integral part of the short and mid-term term space requirements for the OPS.  Ensuring that the space is functional, adequate and secure requires additional funding to successfully complete the project.  The space has been designed to meet functional requirements of the Sections identified for relocation.

(original signed by)

Vern White

Chief of Police