TAMRMS#: B06
11.2
REQUEST FOR DECISION
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Liggett Place Expansion Update and Funding Request
Presented by: Tim Saunders, Director, Public Operations and Karsen Zwiers, Senior Project Manager, Capital Projects Office, Engineering Services
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RECOMMENDED MOTION(S)
recommendation
That the budget for capital project 425803 Transit Garage (Ligget Place) Expansion (TRAN-024) be increased from $10,760,000 to $12,855,000 to be funded from Borrowing Bylaw 2/2025.
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SUMMARY
This report presents a brief update to the project and a request to increase the budget to deliver the intended primary scope. As the project progressed through its design phase into procurement, competitive bid price submissions require additional funding to complete the project as planned.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On April 1, 2025, Council passed the following motion:
BL-25-014
Bylaw 2/2025 Transit Garage Expansion Borrowing Bylaw was given three readings (Original Charter value of $10,760,000 + 25% for a total of $13,450,000)
On December 17, 2024, Council approved the 2025 Municipal and Utility Budget which included PW-031 ($6,000,000) and TRAN-024 ($10,760,000).
BACKGROUND AND DISCUSSION
Originally constructed in 1985, Liggett Place is the City’s sole transit garage facility. Liggett Place has previously undergone expansions and renovations in 2001 and 2010.
A steady upward trend in transit service has increased the size of the transit fleet and higher utilization of this fleet increased maintenance requirements. With an existing fleet size of 67 buses, inclusive of 60 conventional and seven handibuses, the size of the transit fleet exceeds the capacity of the transit garage.
This project is intended to design and construct a 12-lane parking garage extension that will accommodate the existing fleet while providing capacity for transit fleet growth. Also, an additional maintenance bay is included to assist in maintaining the transit bus fleet.
While completing the bus garage expansion, the City plans to complete required facility lifecycle repair work. Much of the mechanical and electrical equipment at Liggett Place have reached the end of serviceable life and will be renewed as part of the overall expansion project.
The City is utilizing the project delivery method Construction Management at Risk (CMAR) due to the complexity of the construction, in particular the means and methods of completing the work while maintaining operation of the facility. The CMAR model uses a Prime Contractor known as the Construction Manager during the design phase to assist in design/construction optimization and assists with navigating the complexities of this project.
Project Budget:
The Transit Garage Expansion (Liggett Place) has an approved construction budget of $10,760,000 funded through Borrowing Bylaw 2/2025.
The lifecycle work will be funded from PW-031 Municipal Facilities - Repairs & Renewal.
The $10,760,000 was assembled during conceptual planning. The design advanced to the 60% level in December 2024 and reached a tender-ready state in February 2025. Through competitive procurement by the Construction Manager, final competitive pricing has been received bringing the total project cost of the expansion to $12,855,000.
A thorough review was completed utilizing a third-party cost consultant and the cost increases have been attributed to:
• Facility operational requirements require phasing of work that was not thoroughly understood at the conceptual stage. To accommodate the construction, the facility will be expanded by one half at a time. Minimal to no impact is expected to the City’s transit system.
• The project budget protects for risks related to existing building infrastructure that had previously not been included within the estimates, specifically potential unforeseen conditions of electrical and structural components.
• The submitted pricing is a product of current market trends and has escalated construction costs since the estimates were created.
• Costs for temporary transit staff to assist with movement of equipment, buses and tools at the facility during construction.
The Construction Manager has developed cash flow projections and is expecting the draw on debt will be $6,000,000 in 2025 and $6,855,000 in 2026.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPACTS OF RECOMMENDATION(S)
Financial:
If the budget increase is approved, the total project budget for Liggett Place Expansion will increase to $12,855,000 to be funded through the original Borrowing Bylaw 2/2025 which provides borrowing authorization up to $13,450,000.
Compliance & Legal:
None at this time.
Program or Service:
City service levels related to Transit will continue and Liggett Place will allow for growth in both the Conventional and Handibus Transit operations.
Organizational:
None at this time.
Risks:
A decision to pass the recommended motion will treat risks that currently exist related to difficult operations within the existing facility. With the existing fleet exceeding the current capacity of Liggett Place, buses are regularly parked outside that in winter months requires elaborate preparation and coordination that includes starting and warming of the fleet outdoors. Similarly, the additional space and maintenance will assist with the logistics of bus movement in and around the facility daily.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
None at this time
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
The Liggett Place Expansion Project supports City of St. Albert Service Levels:
• Program Area E, Movement of Goods and People
o E.1.1 - Conventional Fixed Route Transit Services
o E.1.2 - Handibus Servies
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the recommended motion, the following could be considered.
ALTERNATIVE 1: 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. The commencement of work in 2025 would not occur while the design is updated to reflect scope reductions.
Financial:
Current budget allocated would not be affected; however, future funding to achieve the intended scope of work 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:
None at this time.
Program or Service:
Expansion at Liggett Place will not be completed in 2025, and this will cause future complications with transit fleet storage and possible impacts to maintaining the same level of transit service to the public.
Organizational:
None at this time.
Risks
With the construction pricing in hand for the current defined scope and design, a reduction in scope to accommodate existing funding would require procurement to occur for construction in 2026 or beyond and there is risk that construction pricing escalations would raise construction costs relative to current submissions.
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Report Date: May 6, 2025
Author(s): Karsen Zwiers, Tim Saunders
Department: Engineering Services, Public Operations
Department Director: Dawny George, Tim Saunders
Managing Director: Adryan Slaght & Dinu Alex
Chief Administrative Officer: William Fletcher