City staff find just $71,323 of fat to trim from plaza budget

Ordered last month to find ways to significantly reduce cost overruns on the downtown plaza project, City of Sault Ste. Marie staff are recommending just $71,323 in cuts to the project's way-over-budget $11.6-million price tag.

"At this stage of the project, there are limited options for significant cost reduction," says Tom Vair, the city's deputy chief administrative officer for community development and enterprise services.

"Following the Jan. 30, 2023 city council meeting, staff began discussions with the consulting team from Brook McIlroy and the general contractor, Avery Construction," Vair says in a report prepared for a budget meeting of city council on Monday.

"In those discussions, the general contractor clarified that orders were placed shortly after tender award for long lead time items to avoid cost escalation."

"Many components and equipment have been delivered or contracts signed and engineering/design work undertaken."

Vair found just $71,323 worth of fat to trim from the project, as follows:

• $10,499 can be saved by removing miscellaneous curbs on the north end of the plaza site
• up to $18,324 in savings by removing unit pavers from exterior rink banding
• $10,000 can be saved by having city public works staff install a play structure themselves
• $5,000 by eliminating a reed lighting feature
• $22,500 by removing stair lighting
• $5,000 by dropping a metal guide rail intended to prevent damage to an Indigenous screen and wood fence from an adjacent private parking lot

In materials released by the city late Friday afternoon, Vair said another $150,000 could be saved by removing the plaza stage, but he says that would be a bad idea.

The stage foundation has already been poured and its digital screen and speakers have already been received, he said.

"This is the focal piece of the lower room and a key component to activation (musical/ theatre/dance performances, movie screenings, sports event viewing, etc.)."

Sponsorship for the stage has already been secured, Vair said.

"It should be noted that two value-management exercises were conducted on the project previously."

"The first was completed by staff prior to seeking council approval on a final project budget. The second was completed after the tender submissions came in over budget."

"The features that were selected to remain in the plaza were felt to be critical components to the overall success of the project from a programming, activation and aesthetic perspective."

"Many of these features also had received the benefit of community sponsorship," Vair said.

The plaza's rink, delayed until spring by supply-chain problems, is not recommended for elimination because of work completed to date and the builder's contract, he added.

Although Vair is recommending removing unit pavers from the exterior rink banding, he nonetheless had reservations about that.

"From a design perspective, this is not recommended," he said.

"The plaza consists of concrete and asphalt on the site, and this strip of unit paving provides a colour differential and breaks up the upper room, which is entirely concrete."

"The asphalt alternative may look as if the area was infilled as a cheaper alternative (patch work) and the concrete will blend in with the rest of the space."

"Though there is a cost savings, the alternative will not provide a high-degree design aesthetic," Vair cautioned.

Yesterday, SooToday exclusively reported that a blue-chip committee of business people is being assembled to encourage additional investment in the downtown plaza's neighbourhood. 

Monday's city council meeting will be live-streamed on SooToday starting at 4:30 p.m.