TAMRMS#: B06
9.5
REQUEST FOR DECISION
title
Police Services Building Accommodations Update and Funding Request
Presented by: Miranda Rowda, Manager, Capital Projects Office, Engineering Services
and Chadwick Paddick, Project Manager, Capital Projects Office, Engineering Services
label
RECOMMENDED MOTION(S)
recommendation
That the budget for capital project 422334 Policing Services Building Accommodations (POLI-006) be increased from $5,000,000 to $6,710,000 to be funded from Borrowing Bylaw 28/2022.
body
SUMMARY
This report presents a brief update to the Policing Services Building Accommodations project and a request to increase the budget to deliver the intended primary scope. As the project progressed through its design phase, updated budget and construction estimates indicate the need for additional funding to complete the project as originally planned.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
The Policing Building Accommodation Project supports the Council Priority of Financial Sustainability by continuing to ensure efficiency in City service delivery with a focus on long-term financial sustainability and future growth of St. Albert.
The improvements to both the Maloney Place and Beaudry Place buildings are also related to the following:
• Council Policy, C-PS-02 Policing Services.
• Municipal Police Service Agreement.
• Council Policy, C-FS-05
On July 4, 2023, Council passed the following motion:
BL-23-15
That $3,750,000 of Lifecycle funding be reallocated from PW-031 Municipal Facilities Repairs & Renewals (422807 and 423807) to fund POLI-006 Policing Building Accommodation (422334).
On May 16, 2023, Council passed the following motions:
AR-23-276
That the revised Capital Charter, Policing Services Building Accommodations (POLI-006) Attachment 1, to the May 16th, 2023, Agenda Report titled Policing Building Accommodations (POLI-006) Scope Change be approved.
That $350,000 be funded from the Capital Reserve in lieu of debt funding to address the required renovations at St. Albert Place to accommodate the displacement of staff currently in Beaudry Place and the remaining $4,650,000 of the approved budget be funded by debt as previously approved.
BACKGROUND AND DISCUSSION
Since 2019, the City has recognized the evolving pressures on policing services and has been working towards assessing the need for additional building space to accommodate policing services in the community. This involved the review of both existing buildings, Maloney Place and Beaudry Place for potential expansion/renovation to meet immediate growth needs, while advancing the 2024 feasibility design and potential construction plan of a new detachment facility in the future.
A 2019 feasibility study demonstrated a clear need to provide additional space for policing services due to population/service growth, changes in police equipment standards, as well as updates to safety and security infrastructure.
The intent of this project is to remedy the identified health, safety, and security deficiencies, as well as complete other necessary renovations that will provide tolerable space for policing operations, while longer term policing building accommodation planning is completed.
Maloney Place Scope:
• Improvements to Cell Block
• New Policing Equipment Room
• Renovated Locker Rooms (Men's/Women's)
• Renovated Gym Area
• New Front Lobby/Reception Area
• Policing Storage Improvements
• Improvements to 911 Dispatch Area
• Staff Calming Room
• Various building repairs and improvements throughout the building
Beaudry Place Scope:
• New Locker/Washroom Area
• Bull Pen/Open Office Space
• New Lunchroom
• Courtyard Improvements
• New Lobby Reception Area
• Improvement to Policing Equipment Room
• Various improvements throughout the building
Project Budget:
Project Charter POLI-006 for the Policing Services Building Accommodations was previously approved and currently allows for a total project budget of $5.0M.
The City has retained an architect to complete the design and a Construction Manager (CM) to lead the construction. Work has been ongoing on this project since 2022. In this time the following has been completed:
• design and construction of a parking lot expansion at Maloney Place,
• design of the renovations for both Maloney Place and Beaudry Place buildings to 99%,
• design and construction of St. Albert Place renovations to accommodate the relocation of Family and Community Support Services staff from the first floor of Beaudry Place, and
• the demolition and abatement process on the first floor of Beaudry Place.
A total of $2.3M of the $5.0M budget has been committed to date. The uncommitted budget remaining on this project is $2.7M to complete the rest of the work, which includes:
• finalizing design for both buildings for tender readiness,
• construction management cost,
• the construction/renovations in both buildings,
• office workstation and equipment (Furniture, Fixtures, and Equipment).
The CM has provided a cost estimate of $3.8M for the remaining construction work based on the most current design package and market conditions. With the CM providing a higher-than-expected estimate, the City has engaged with the architect and CM to reduce pricing by:
• confirming areas of risk or confusion by estimator,
• reviewing product used and if an alternate product or solution is possible, as well as sourcing local products in an effort to save costs,
• engaging with stakeholders to ensure industry standards are fully met,
• looking at construction phasing to reduce overhead and mobilization costs, and
• discussing areas of scope that could potentially be removed that would not impact operations required for policing/RCMP growth and safety requirements.
After a thorough review by the project team, it can be generally concluded that the cost of this project has increased beyond previous design estimates due to:
• Pricing related to phasing of work had not been included, specifically the movement of staffing and services from one site to another for continued customer service,
• Additional risks related to dealing with existing building infrastructure were not included, specifically potential unforeseen conditions of electrical and structural components,
• Some specialty items were more costly than expected (e.g. cell doors).
When this estimate was completed, potential tariffs by the US or Canada were not yet in place and have not been included within this cost estimate. A contingency of 10% on the total project cost is recommended to allow for potential unforeseen other costs during construction, as may be typical for a building renovation project. If volatility in the market due to tariffs plays a major role in the construction completion of this project beyond the contingencies allocated, it will be reviewed and brought back to Council for additional decision in the future.
Therefore, based on the most recent cost estimates, an additional $1.71M project funding including contingency will be required to complete the planned scope of work. This amounts to a total of $6.71M in the revised project charter included as an attachment.
It should be noted that the CM remains obligated to follow the City’s procurement policies, and that the remaining construction work packages will be competitively tendered to ensure that the final pricing received for this project provides the best value for the City.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPACTS OF RECOMMENDATION(S)
Financial:
If the $1,710,000 budget increase is approved, the total project budget for Policing Building Accommodation will increase from $5,000,000 to $6,710,000 to be funded through the original Borrowing Bylaw 28/2022 which provided borrowing authorization up to $7,500,000.
Compliance & Legal:
Should additional project budget be approved at this time, the City can continue with the planned remediation of the two buildings without needing to remove or defer project scope. Completing upgrades related to growth and safety will bring compliance with the Council Policy C-PS-02 and the Municipal Police Service Agreement that require accommodation to meet the requirements established by the RCMP.
Program or Service:
Approval will enable both buildings to be updated for the current use of items/equipment required for day-to-day policing activities. All RCMP and policing requirements would be up to date, ensuring a greater level of safety for all groups within the facilities. This investment will bridge the gap to meet the current service levels until a permanent policing facility is built and may only yield a short-term return on the benefit.
Organizational:
Approval would allow for a fully completed project that will provide tolerable accommodation and some room for growth while planning continues for a new policing services building.
Risks
With discussion of Canada-US tariffs occurring within the first quarter of 2025, the project team would like to have this request finalized to start working to secure contracts and pricing in place before any additional increase might occur. Approval of the additional funds and advancement of the project quicker would likely mitigate any project cost increase via tariffs and inflation.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
None at this time.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
None at this time.
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the recommended motion, the following could be considered.
ALTERNATIVE 1: Reduced Scope
The project team has further reviewed opportunities to reduce costs by removing items from the remaining scope of the project. The review considered only items that were lower in priority, as the remainder of scope is necessary to meet the objectives of the project. Opportunities to reduce costs include the following:
• Beaudry Place Courtyard Improvements
• Maloney Place Locker Room Improvements,
• Maloney Place: gym flooring, gym wall repair, 911/dispatch room improvements
Total potential savings expected: approximately $0.44M
The above project items could be considered as a possibility for removal as these areas have less of an effect on operational needs with the caveat that these areas do have a connection to staffing needs such as for wellness, morale, and mental health, as well as operational effectiveness of the 911 room.
Reducing the scope of this project by removing the items identified above would require additional budget approval of $1.23M, inclusive of contingency. Therefore, the total project budget will be increased from $5.0M to $6.23M.
Financial:
Similar to the recommended alternative, the budget increase for this option would be funded from Borrowing Bylaw 28/2022.
This recommendation would reduce the scope of work and have the potential for Policing Services to provide future budget requests for work not completed at this time. Pricing is expected to increase due to inflation, additional mobilization costs and possible rework within both buildings.
Compliance & Legal:
Should additional project budget be approved at this time, the City can continue with the renovations of the two buildings within the reduced scope. Completing the reduced upgrades is expected to be in compliance with the Council Policy C-PS-02 and the Municipal Police Service Agreement that require accommodation to meet the minimum requirements established by the RCMP.
Program or Service:
A reduction in areas of scope noted above will result in continued communication challenges between 911 staff (as it relates to the 911 room scope) as well as some negative impacts related to employee health, safety and wellness. Policing would require additional requests to complete these items in the future.
Organizational:
Reduction of scope would follow additional budget requests for future repairs and projects to meet policing growth and items related to health and safety. This investment will partially bridge the gap to meet the current service levels until a permanent policing facility is built and may only yield a short-term return on benefits.
Risks:
No further risks that have not already been identified above.
ALTERNATIVE 2: Do Nothing
This option consists of Council not approving this funding request and would involve administration reducing the scope further to fit the current budget availability as assigned. Scope removed at this time would involve deferring some required improvements to future years, subject to availability of funding approval.
Financial:
This wouldn’t affect the current budget allocated but would require additional funding in future years. Due to inefficiencies and inflation, completing these scopes of work in the future is expected to be more expensive.
Compliance & Legal:
Although the budget allows for many safety and security issues to be completed, there would be many areas not addressed. Not completing the required upgrades will result in non-compliance with Council Policy C-PS-02 and the Municipal Police Service Agreement that require accommodation to meet the requirements established by the RCMP. This could then result in dispute resolution provisions with the Municipal Police Service Agreement to be activated and/or potential for the RCMP to complete any security and safety deficiencies and bill back their costs at 100% in accordance with the agreement.
Program or Service:
With areas not being completed, services related to policing may require changes to ensure the safety of all parties. This could include the potential of the RCMP closing down of cells due to hazards, some RCMP employees being moved to alternative locations or additional procedures and policies put in place for day-to-day work that will decrease operational efficiency and effectiveness.
Organizational:
Reducing the scope would not allow space for growth required for policing services, which will impact the number of staff that can be accommodated within the buildings and would ultimately have an impact on service delivery to the community.
Risks
This option poses the most risk of additional budget costs. It also extends the timelines for finalized workspaces that would benefit the city/staff use for growth. The reduced scope still has locations with security, health and safety concerns that would affect staffing, operations, and RCMP relations.
body
Report Date: April 15, 2025
Author(s): Miranda Rowda, Chadwick Paddick, Aaron Giesbrecht
Department: Engineering Services, Emergency Services
Department Director: Dawny George, Everett Cooke
Managing Director: Adryan Slaght, Diane McMordie
Chief Administrative Officer: William Fletcher