To: From: Resource Staff: City of Kingston Report to Council Report Number 18-173 Mayor and Members of Council Denis Leger, Commissioner, Corporate and Emergency Services Construction Services Date of Meeting: Subject: Executive Summary: Speros Kanellos, Director, Facilities Maintenance & Kingston Frontenac Public Library - Central Branch Renovation Extension of Temporary Accommodation Leases In July 2016, Council provided consent to the Kingston Frontenac Public Library Board to lease temporary facilities in the downtown area, as well as office space for staff and collection storage, during the renovations of the Central Library Branch for a term of up to 21 months (Council Report 16-251) Central Library Renovations Project Relocation Requirements and Budget Amendments. Under Section 19 of the Public Libraries Act, the Library Board must have the consent of the majority of Councils for which the Library Board was established to enter into a lease agreement. In April 2018, Council provided consent for a one (1) month extension of both leases in response to a number of unanticipated construction-related delays (Council Report 18-078). As a result of further unanticipated delays in the project, City and Library staff are recommending that the temporary leases at both 209 Wellington Street East and 18 St. Remy Place be further extended for up to an additional two (2) months. The primary reason for this request for a second lease extension is to allow the Leadership in Energy and Environmental Design ( LEED ) Commissioning to take place in a complete, well-cleaned and flushed building environment and for the leased premises to be returned to the landlords in a repaired and adequately clean condition. Council Meeting 16 94
Page 2 of 5 In addition, City staff is recommending that Council grant delegated authority to extend beyond that timeframe in the event of further unforeseen circumstances and the possibility of lame duck provisions applying to City Council. The total cost to extend the leases is approximately $12,000 per month. Sufficient budget exists within the Central Library project budget to fund the lease extensions. Recommendation: That Council consent to the extension of leases by the Kingston Frontenac Public Library Board for temporary facilities at both 209 Wellington Street East and 18 St. Remy Place locations as necessary for up to two months, as required by Section 19.1 (a) of the Public Libraries Act, subject to Library Board approval; and That Council grant delegated authority to the Commissioner of Corporate & Emergency Services to approve the extension of these lease agreements up to December 31, 2018 in the event of further unforeseen circumstances and the possibility of lame duck provisions applying to City Council. Council Meeting 16 95
Page 3 of 5 Authorizing Signatures: Denis Leger, Commissioner, Corporate & Emergency Services Gerard Hunt, Chief Administrative Officer Consultation with the following Members of the Corporate Management Team: Lanie Hurdle, Commissioner, Community Services Jim Keech, President & CEO, Utilities Kingston Desirée Kennedy, Chief Financial Officer & City Treasurer Not required Not required Council Meeting 16 96
Options/Discussion: Page 4 of 5 In July 2016, Council provided consent to the Kingston Frontenac Public Library Board to lease temporary facilities in the downtown area, as well as office space for staff and collection storage, during the renovations of the Central Library Branch for a term of up to 21 months (Council Report 16-251) Central Library Renovations Project Relocation Requirements and Budget Amendments). Under Section 19 of the Public Libraries Act, the Library Board must have the consent of the majority of Councils for which the Library Board was established to enter into a lease agreement. In April 2018, Council provided consent for a one month extension of both leases in response to a number of unanticipated construction-related delays (Council Report 18-078). As a result of further unanticipated delays in the project, City and Library staff are recommending that temporary leases at both 209 Wellington Street East and 18 St. Remy Place be extended to see the construction project to its successful completion, to accommodate an uncompromised commissioning process and to allow the repair and cleaning of the leased premises before fully vacating them. Originally, the renovated building was anticipated to be completed and commissioned on a floor by floor basis to save construction time. Further detailed analysis of the process has determined staged commissioning will complicate and compromise the success of this important compliance process and the need to comply with the enhanced commissioning requirements of LEED version 4. The total cost to extend the leases is approximately $12,000 per month. The project budget can accommodate the additional costs and remain within the total budget. The leases were originally anticipated to end April 30 with a three (3) month contingency to July 31. The extension approved by Council April 2018 provided a one (1) month extension to August 31 to account for unanticipated delays experienced during the project. The additional extension being proposed by the Library Board is for 1 month, to September 30, 2018 and if required, possibly to October 31, 2018. An extension of the lease for up to two months to October 31, 2018 with a 30-day notification clause to terminate would accomplish this and is being recommended by City staff. In addition, in the event of further unforeseen complications in constructing or commissioning the Central Library Branch, and the possibility of the lame duck provisions applying in this election year, staff is also recommending that Council grant delegated authority to staff to further approve the extension of the leases beyond October 31, 2018 to the end of 2018 to see the project to its successful completion and commissioning. Staff presented a recommendation for extension of the leases to the KFPL Central Branch Renovation Committee on May 18, 2018 and received approval. The same recommendation was presented, discussed and approved at the Library Board meeting held May 23, 2018 recommendation (Exhibit A). Council Meeting 16 97
Page 5 of 5 As a result, City and Library staff are recommending that the temporary leases at both 209 Wellington Street East and 18 St. Remy Place be extended by one (1) to two (2) months as needed to allow the project to be properly concluded. One (1) month is expected to be sufficient but having the flexibility of two (2) months provides contingency time for unforeseen circumstances. Both temporary landlords have expressed willingness to accept flexible holdover lease extensions. In addition, City staff is recommending that Council grant delegated authority to staff to approve the extension of these lease agreements up to December 31, 2018 in the event of further unforeseen circumstances and the possibility of lame duck provisions applying to City Council. Existing Policy/By Law: N/A Notice Provisions: There are no notice requirements for this report. Accessibility Considerations: N/A Financial Considerations: The Central Library Renovations project budget has sufficient funds to accommodate the further extension of the leases being proposed. Contacts: Speros Kanellos, Director, Facilities Management & Construction Services ext. 3133 Robert Crothers, Project Manager, Facilities Management & Construction Services ext.3162 Other City of Kingston Staff Consulted: Desiree Kennedy, CFO and City Treasurer ext. 2220 Susan Nicholson, Director, Legal Services & City Solicitor ext.1293 Kathy Gray, Property Specialist, Real Estate & Environment Initiatives, ext.2429 Applicable City Departments Exhibits Attached: Exhibit A: Kingston Frontenac Public Library Board Motion Council Meeting 16 98
Report 18-173 Exhibit A Page 1 of 1 Motion KFPL Board Meeting May 23, 2018 2018-32 Nossal Aitken That the Library Board give approval to extend the leases for the two temporary locations, 18 St. Remy Place and 209 Wellington Street from August 31, 2018 to September 30, 2018; with additional approval to further extend the leases for these locations from September 30, 2018 to October 31, 2018 if necessary. Carried Council Meeting 16 99