Winnipeg, MB - An administrative report published today requests authority from City Council for additional funds of $17.2 million to complete the Winnipeg Police Service (WPS) Headquarters project.
Current and anticipated needs of the WPS cannot be accommodated in the antiquated Public Safety Building at 151 Princess Street. The relocation project will consolidate core police functions that are currently dispersed at several locations throughout the city, and will increase police presence and improve public safety in the downtown. When complete, the new headquarters will house 14 divisions and approximately 1,250 people. All six floors at 245 Smith Street are being redeveloped to “as new” condition and will have approximately 606,000 square feet of space.
Construction is about 70 per cent complete, with the most complex parts of the project either finished or completely costed-out. The final cost for the new WPS headquarters will be $293 per square foot (including land) compared to the East District police station which cost $379/sq. ft. and the West District station at $479/sq. ft. (both excluding land).
As outlined in the report, the extra costs associated with the conceptual design include changes to the mechanical, fire alarm and electrical systems ($12.1 million), the backup generator system ($4.4 million), small change orders ($220,000) and building code-required pressurization of stairwells ($486,000) for a total of $17.2 million.
A Guaranteed Maximum Price (GMP) contractual arrangement approved by Council in July 2011 was based on conceptual design drawings which were approximately 30 per cent complete. The purpose of proceeding in this way was to avoid waiting up to two years to complete the design, prevent cost increases due to construction inflation during that two-year wait, and prevent manpower and tradesperson shortages during heightened construction project work as the stadium, museum and airport projects were ongoing simultaneously.
As the report identifies, a GMP is not an absolute protection. It only transfers part of the total risk. Even with a GMP, the City was at risk for unforeseen conditions, unanticipated requirements, and changes to design and scope of the project.
The final, 100 per cent design was completed in April 2013, and following this, the contractor established the final costing in late August 2013. The detailed supporting documentation to allow the City’s consultant engineers to evaluate the final pricing was received from the contractor in late September 2013.
The administrative report proposes that the City would use debt financing, resulting in borrowing of $15.2 million financed by $1 million per year in debt payments, which would be accommodated within existing budgets due to lower long-term interest rates and an extended payment period.
The report, which will be considered by the Standing Policy Committee on Downtown Development, Heritage and Riverbank Management at its meeting on November 22, 2013 is available here.