yarmouth area industrial commission request for...

Yarmouth Area Industrial Commission April 6, 2015 Request for Proposals Consulting Engineering Services of 12

Yarmouth Area Industrial Commission

Request for Proposals

Consulting Engineering & Environmental Services

for the Demolition of the

Dominion Textiles Building Facility, 236 Water Street, Yarmouth, NS

Closing By: Thursday, May 6 2015 at 2:00pm Local Time

Municipality of the District of Yarmouth

932 Highway 1

Hebron, NS B5A 5Z5

Attention: Mr. Greg Shay


Table of Contents

1.0 Introduction……………………………………………………………….....................3

2.0 Project Background…………………………………………………….....................3

3.0 Scope of Consulting Engineering Services…………………......................4

4.0 Project Meetings, Reporting and Principal Deliverables..................6

5.0 Information to Consultants………………………………………......................7

6.0 Proposal Evaluation & Award of Proposal .……………….....................9

Appendices

Appendix A - Capital Reserve Fund Study - Dominion Textiles Building Facility


1.0 Introduction

The Yarmouth Area Industrial Commission (YAIC) is seeking the services of a Consulting Engineering and Environmental Firm (Consultant) licensed to practice in Nova Scotia to provide Consulting Services for the demolition of the Dominion Textiles Building Facility (Domtex) and associated works, located at 236 Water Street, Yarmouth, NS. The scope of services is to principally include but is not limited to the following:

Project Management Data Collection Phase I and II Environmental Site Assessments Potential Phase III Environmental Site Assessment Hazardous Materials Survey Permit Applications & Approvals as Necessary Preparation of Preliminary Design, Detailed Design, and Tender Documents Services during the Tendering Period, and Contract Administration Services

2.0 Project Background

Domtex is owned, managed, and operated by the YAIC. Three municipal authorities that include the Town of Yarmouth, Municipality of the District of Yarmouth, and the Municipality of Argyle each have an equal financial stake in the YAIC and Domtex in terms of the operations, rental, and capital financing required to maintain the building facility.

Michael Williams, P. Eng of BRK Engineering Inc. (BRK) was retained by the Yarmouth Area Industrial Commission (YAIC) in May 2014 to prepare a Capital Reserve Fund Study of the principal building elements at Domtex. A copy of the November 2014 final report is attached. Michael Williams has been retained by the YAIC to serve as the YAIC Owners Engineer during the project and will be the point of contact with the selected Consultant.

The original Domtex plant was founded as the Yarmouth Duck & Canvas Co. in 1883 to make sail canvas and it later switched to other industrial fabrics. The company eventually became Dominion Textile Incorporated. In 1991, after approximately 110 years of operation, the Domtex plant closed. Since 1993 the YAIC have focused on adapting the former Dominion Textile plant to a mixed-use facility to create long-term jobs. Between 1993 and 1996, the federal and provincial governments provided support to complete necessary improvements to the building facilities. It was reported that upgrades were made to the electrical and sprinkler systems, access roads and parking areas. Other recent capital replacement or major cost upgrades include the heating plant and associated piping, and separation from the WarpTech building facility located at the other side of Water Street, sprinkler control systems, and various interior modifications that included a bingo hall.

The Domtex property is zoned as Waterfront Industrial (M2). The total floor space of the building is approximately 150,000 square feet, which includes a basement and three floor levels.

According to the attached property plan prepared by R.V. Potter Surveyors in November 1994 the area of the Domtex facility that is owned by the YAIC is located within the boundary of Lot 2 (indicated by the red arrow). This is the building that is included for demolition.


The building area to the south is owned by Novatec Braids Limited (indicated by the blue arrow at 234 Water Street). The building areas to the north are owned by Germain Mechanical & Electrical Limited (indicated by purple arrow at 240 Water Street), and P. R. Gahan & Sons Limited (indicated by black arrow at 242 Water Street). These three buildings are to remain.

As a point of interest the current tenants at the Domtex facility include the following companies and municipal entities:

Midland Courier Granite Counter Top East Coast Cabinets Electrobraid Fence Limited Lower East Eco Products Yarnsmith Fiber Works Cassa Business Equipment Municipality of Yarmouth Town of Yarmouth Novatec Braids Limited Acadian Seaplants Limited Warptech

The YAIC has a number of hard copy and pdf copies of various property and building drawings that will be made available to the selected Consultant and where necessary will need to be verified and defined by the selected Consultant during the course of the project.

3.0 Scope of Consulting Engineering Services

The Consultant is required to complete investigations and preparation of tender documents for the following principal activities on time and on budget using sound project management and quality assurance principles for the demolition, removals, and associated works for the following:

Demolition of the YAIC owned Domtex building as outlined in Section 4.1 of the Capital Reserve Fund Study in Appendix A;

Demolition of the redundant structural steel frame that spans across Water Street; Associated building envelope repairs, waterproofing, and cladding to the three existing buildings

that remain; Separation of site building services that remain; and Site reinstatements


At the rear elevation of the building there is a 3 storey masonry and timber framed building structure and lean to single storey structure that extend westwards from the main rectangular part of the building that has extensive water related damages at all building levels occasioned by a total failure in the flat roofing assembly, which was reported to have occurred in 2013/2014. Funding has been made available to demolish this section of the building in 2015 with the remainder of the building in 2016. Refer to Section 4.3.2, pages 12 & 13 of the Capital Reserve Fund Study in Appendix A.

In order to achieve the project objectives the following scope of works is required:

Phase I and II Environmental Site Assessments (ESA)

The Consultant is to prepare a Phase I and II ESA in accordance with regulatory standards and determine the need for a Phase III ESA based on the findings. The scope and cost for a Phase III ESA will be negotiated with the Consultant.

Building Hazardous Materials Survey

The Owners Engineer will provide to the Consultant hard copies of all drawings or relevant information in the YAIC possession. The Consultant is to carry out a site survey of the property and Domtex building and associated services. In addition, a hazardous materials survey and assessment is required. A report of the assessment and detailed list of the findings for all samples tested, and quantities of all hazardous materials will be required for the tender document. The Consultant is to carry an allowance for the following in the price:

Asbestos – 25 samples Lead – 15 samples Leachate – 5 samples PCB – 10 samples Mercury – 10 samples

The Consultant is to provide a schedule of unit costs for any additional test or different test samples based on their past experience.

Pre-Design Phase

Undertake site visits to record the existing site servicing and building services (electrical, mechanical, civil, structural/building envelope), current and future servicing for buildings to remain to enable separation from the Domtex facility, and condition of the three building wall and roofing areas that remain following the demolition of the Domtex building.

Meet with the three existing building owners with the Owners Engineer and YAIC representative in Yarmouth to discuss the options and ultimate agreement for the repairs, waterproofing, wall cladding works to the existing masonry walls, building services, and any other associated works that so as to prepare detailed designs for those work elements.

Define the key design parameters including results from the adjacent property and building surveys.

Prepare the drawings for building services. Identify all measures required to mitigate all potential negative environmental impacts Meet, liaise with regulatory bodies, utilities, and where appropriate obtain approvals The Owners Engineer will provide a list of the YAIC equipment that will be removed or sold by

the YAIC prior to demolition. The Owners Engineer will confirm tipping fee arrangements to be included in the tender

document. Prepare a pre-design report.


Meet with Owners Engineer to present and discuss the draft design report Prepare the final pre-design report.

Detailed Design/Tender Phase(s)

Prepare the tender document(s) for 2015 & 2016 works that is to include but is not limited to the following:

1. Instructions to Bidders, Form of Tender including the Schedule of Quantities & lump Sum items as applicable to project, Measurement & Payment, and NMS Specifications for Divisions 1, 2, 3, 4, 5, 7, 15, 16, and any others as a result of final designs or ESA.

2. Supplementary General Conditions of Contract 3. Final engineering design drawings ready for tender that includes cladding works to the

existing building walls that remain, site reinstatements, any alterations to building services for the buildings that remain.

Pretender Class” D” opinion of the probable construction cost. Obtain required regulatory demolition, and building permit approvals prior to tender. Submit the final tender document to the Owners Engineer.

Tendering Phase(s)

The Consultant will prepare the tender call packages and advertisement that will be placed on the Provincial Government Procurement website by the YAIC.

Provide services during the tender period that would include managing the tendering call by chairing the bidders meeting on site in Yarmouth, responding to design or project related inquiries during the tendering phase as required. Prepare any necessary addenda in consultation with the Owners Engineer and distribute to the bidders.

Review the tenders received, prepare and present the tender report and make a recommendation on award of the construction contract to the YAIC.

Construction Phase(s)

Prepare the CCDC 2-2008 Stipulated Price Form of Agreement Contract administration in accordance with the roles & duties of the Consultant as listed in the

CCDC 2-2008 General Conditions of the Stipulated Price Contract. Consultant is to prepare scope and price based 8 hours per week as an average for a senior engineer as the administrator and allow for a site visit by the same every two weeks. Refer to Section 5.4. Allow for site duration of 12 weeks for 2015 Works and 34 weeks for 2016 Works. If the construction duration(s) is prolonged beyond the above then the costs will be prorated as needed, and as agreed between the Owners Engineer and the Consultant.

4.0 Project Meetings, Reporting and Principal Deliverables

Meetings

The Consultant is to allow for the following meetings that would be separate from meetings that would occur with the Owners Engineer in Halifax during the course of the project, and when the Consultant’s Contract Administrator is on site during that project phase:

Project initiation meeting with the Owners Engineer and YAIC in Yarmouth. Project meeting with the Owners Engineer in Halifax to present the draft pre-design report. Project meeting with the Owners Engineer and YAIC in Yarmouth to present the tender

document.


Present the tender report to the Owners Engineer and YAIC in Yarmouth. Final completion review/project wrap-up meeting with the Owners Engineer and YAIC in

Yarmouth. Reporting

The Consultant is to update the Owners Engineer by Email and telephone on the progress of the works on a bi-weekly basis or more often as the need dictates.

Principal Consultant Deliverables

Three (3) hard copies and a digital copy to the Owners Engineer for review and comment as applicable for each of the following:

Phase I ESA Phase II ESA Phase III ESA (If required) Building Hazardous Materials Survey Draft and final pre-design reports that shall include preliminary level drawings and a

design/tender/construction schedule for implementation. Meet with the Owners Engineer to discuss the draft design report and finalize the solutions. Provide three hard copies of the final design report and a digital copy.

Final tender document(s) to the Owners Engineer. Each copy of the tender document(s) is to be sealed by a Professional Engineer licensed to Practice in NS.

5.0 Information to Consultants

5.1 Proposal Submission

Proposals will be received up to 2:00 pm local time on May 6, 2015 at the Municipality of the District of Yarmouth, 932 Highway 1, Hebron, NS B5A 5Z5

The proposal shall be submitted to the attention of Mr. Greg Shay. The Consultant shall submit their proposal in original plus three (3) copies, and a digital copy on a USB flash drive and be duly signed by an authorized signatory of the Consultant. The proposal shall be sealed in an envelope and shall be labeled:

Consulting Engineering Services Proposal Yarmouth Area Industrial Commission

Dominion Textiles Building Facility Demolition Project

Late proposals will not be accepted and will be returned unopened. Faxed or digitally sent proposals will not be accepted. Proposals not completed may be rejected.

The YAIC will proceed with private openings. Consultants will be advised of the results after the Contract has been awarded.

5.1 Proposal Validity

Proposals shall be valid for acceptance for a period of sixty (60) days from the closing date or such additional time as may be mutually agreed upon in writing between the Consultant and the Owners Engineer.


5.2 Proposal Submission Requirements

A proposal of no more than 10 pages (excluding attachments) should be sufficient for this RFP. The Consultant should set out the proposal in keeping with the Proposal Evaluation in Section 6.0.

The Consultants proposal shall clearly and concisely outline the scope of work to be provided and shall include a description of the project objectives, project scope, project risks, and the approach and methodology that will be used to perform the work.

The Consultant shall provide the experience of the firm relating to the requested services and indicate whether they are the sole undertakers of the work or whether sub consultants will be used. An overview of the Consultants Quality Assurance & Quality Program shall be provided.

The Consultant shall indicate the project manager/senior engineer and the key project team members. A table of the project team members, qualifications, years of experience, key relevant experience, and outline specifically what their primary responsibility applicable to this project will be. A one page CV is required as an Appendix for key professional staff only.

A list of three client references and contact details that maybe contacted shall be provided.

A schedule of lump sum fees and all lump sum expenses in Canadian Dollars for each project phase plus HST as outlined in Section 3.0 of the RFP as set out below.

Item # Project Phase Net Cost (Fees & Expenses)

1 Phase I and II Environmental Site Assessments

2 Potential Phase III Environmental Site Assessment To be Determined

3 Building Hazardous Materials Survey

4 Preliminary Design

5 Detailed Design/Tender 2015 Works

6 Contract Administration 2015 Works

7 Detailed Design/Tender 2016 Works

8 Contract Administration 2016 Works

9 Sub Total Amount

10 HST

11 Total Amount

The cost for reproduction of tender documents is to be included by the Consultant. A schedule of the Consultants net hourly rates for professional and technical support staff is also to be provided in a table format. It may occur that the YAIC may negotiate a final offer with the selected Consultant.

A detailed project schedule either in a table or bar chart format.

A table of representative projects undertaken by the Consultant and key project team members in the past 5 years that are applicable to all aspects of this project. Five to ten projects are sufficient.


5.3 Inquiries

All requests for additional information or clarifications regarding this RFP shall be in writing by letter, Email, or facsimile only, to the attention of the YAIC Owner’s Engineer:

Mr. Michael Williams, P. Eng YAIC Owner’s Engineer 6649 Quinpool Road Halifax, NS B3L 1B7 Tel: (902) 222-2213 Email: [email protected] The Owners Engineer in consultation with the YAIC will determine whether inquiries received warrant an addendum. 5.4 Preliminary Principal Project Schedule

Principal Project Milestone Date

Based on project award to the Consultant by By Mid May 2015

ESA (I, II & Potentially III), Preliminary & Detailed Design Phases Complete by

End of August 2015 (Applies to both the 2015 & 2016 Works)

Issuance of 2015 Construction Tender by (Note ESA to be completed, Pre-design & Detailed/Tender for 2015 demolition works)

Mid July 2015

Receipt of 2015 Construction Tenders by Mid August 2015

Award of 2015 Construction Contract by Beginning of September 2015

Construction Start 2015 Works September 2015

Construction Completion 2015 Works by Mid December 2015

Issuance of 2016 Construction Tender by November 2015

Receipt of Construction Tenders by End of December 2015

Award of Construction Contract on or before End of February 2016

Construction Start Mid March 2016

Construction Completion by Mid December 2016

Note – If the ESA and Building Hazardous Materials Survey can be completed prior to the mid July 2015 then the tender document for the 2015 and 2016 works could be combined into a single tender document. 5.5 Insurance

The Consultant shall, without limiting its obligations or liabilities maintain both Errors and Omissions and Commercial General Liability insurance appropriate for the work and shall furnish proof of coverage with the proposal for a limit of $2,000,000.00.

5.6 Regulations

The Consultant shall comply with all existing Federal, Provincial and Municipal regulations and other authorities having jurisdiction.


5.7 Taxes

The Consultant shall pay all Federal and Provincial Taxes as required by the appropriate enactments.

The Consultant shall indicate on each payment application, as a separate amount the Harmonized Sales Taxes that the YAIC is obligated to pay. This amount will be included in payments to the Consultant.

5.8 Payments

Payments shall be based on monthly invoices of prorated milestone payments submitted by the Consultant in accordance with the payment schedule approved by the Owners Engineer.

Payment will be made within thirty (30) days from receipt of the invoice provided that the Owners Engineer has approved the work that is being billed. No payment made by the YAIC under this Contract shall constitute acceptance of work or products that are not in the requirements of the Contract.

5.9 Contract Agreement

The Association of Consulting Engineers of Canada (ACEC) Document 31 shall form the Contract Agreement between the Consultant and the YAIC.

6.0 Proposal Evaluation & Award of Proposal

The evaluation process will be carried out by an evaluating committee who will establish the ranking of the Consultants proposals. The proposal evaluation will be based on the following:

Proposal Document Criteria (Consideration may include but are not limited to the following)

Consultant Score

Understanding of YAIC Needs

Understanding of the scope of work requirements, objectives, and YAIC organizational structure

Attention to relevant challenges

/10

Technical Work Plan

Approach & methodology to work requirements & objectives

/20

Project Management

Management structure with consultant’s project team

Proposed communication methods between Consultant and YAIC Owners Engineer

Project Schedule

Quality Assurance standards and practices

/5

Team Composition & Experience

Sector specific experience of consultant firm(s)

Experience of individual team members with projects of similar scope and size on recent projects within the past 3 to 5 years.

Team members appropriate skills and qualifications

Adequate back up resources

References

/40

Completeness & Presentation

Clarity and degree to which the proposal addresses the submission requirements

/5


Proposal Document Criteria (Consideration may include but are not limited to the following)

Consultant Score

Sub Total /80

Cost /20

Total /100

The cost proposal evaluation will be evaluated out of 20 points. The proposal with the lowest cost will receive the maximum points allowed. All other proposals shall receive a percentage of the points available based on their cost relationship to the lowest. This is determined by applying the following formula:

Lowest Cost x maximum points available = awarded points

The lowest price and all prices within 5% of the lowest price will be awarded 20 points. The next lowest price (beyond 5%) and all prices within 5% of the next lowest price will receive 10 points. Points for other submissions will be assigned with 2 fewer price points for each successively higher priced proposal. But again, each time the same score will be awarded if successive prices are within 5% of the last highest price.

The Consultant with the highest proposal ranked points total will be awarded the project. In the event of a tie between the overall scores of 2 or more proposals, the work will be awarded to the Consultant with the lowest price.

The YAIC reserves the right to modify the terms, or cancel, or reissue the RFP at any time at its sole discretion.

This RFP should not be construed as a contract to purchase goods or services. Although proposals will be assessed in light of the evaluation criteria, the YAIC is not bound to accept the lowest priced or highest scoring proposal or any proposal. The YAIC reserves the right to reject any or all proposals and to award the contract in its entirety, or in part, whichever, in its opinion, best serves the interests of the YAIC.


APPENDIX A

Yarmouth Area Industrial Commission Dominion Textiles Building Facility Page i of ii 236 Water Street, Yarmouth, NS Final Capital Reserve Fund Study November 2014

BRK Engineering Inc.

EXECUTIVE SUMMARY

BRK Engineering Inc. (BRK) was retained by the Yarmouth Area Industrial Commission (YAIC) in May

2014 to prepare a Capital Reserve Fund Study of the principal building elements at the Dominion Textiles

Facility (Domtex), located at 236 Water Street, Yarmouth, NS.

Domtex is owned, managed, and operated by the YAIC. Three local government municipal authorities

that include the Town of Yarmouth, Municipality of the District of Yarmouth, and the Municipality of Argyle

each have an equal financial stake in the YAIC and Domtex in terms of the operations, rental, and capital

financing required to maintain and operate the building facility.

The primary objectives of the assignment was to assess the current principal building element conditions

and prepare a resulting opinion of the capital costs required to maintain the building to a reasonable

standard over various time horizons. Also, where appropriate the scope of work included the

development of a resulting options analysis for the Domtex facility based on the reported and observed

findings during the condition review.

The original Domtex plant was founded as the Yarmouth Duck & Canvas Co. in 1883 to make sail canvas

and it later switched to other industrial fabrics to stay in business. The company eventually became

Dominion Textile Incorporated. In 1991, after approximately 110 years of operation, the Domtex plant

closed.

The building is predominantly 3 storeys high with single storey building areas located at the front and to a

greater extent at the rear elevation. At the front elevation at the main administration entrance the single

storey addition is not of original construction and houses the administration offices that for the most part

are currently unused. At the rear west facing elevation the building reduces in height to single storey and

the loading docks are all of single storey height.

The principle building wall envelope has a stucco waterproofing coating, which is applied at the majority

of the exterior the mass clay brick load bearing walls. The smaller buildings that include the rear

elevation loading docks, garage, and heating plant have vertical ribbed metal siding, brick, or concrete

block walls. At the front elevation administration addition there is a brick cavity wall.

The majority of the roofing assemblies consist of built-up tar and gravel roofing with a smaller area of SBS

modified bituminous assembly, and sloped asphalt shingles located at the rear elevation at levels 1 and 3.

A rear loading dock area has corrugated metal roofing. The rainware consists of metal and PVC gutters,

scuppers, and downspouts.

The principal building systems include the underground and above ground drainage and plumbing

conveyance piping and pumping; materials conveyance elevator; main electrical supply, panels, and

secondary distribution; lighting; emergency lighting, domestic and fire water supplies; above ground fuel

oil storage tanks; heating plant and distribution; hot water heating, storage & distribution; ventilation;

sprinkler system, and fire alarm control panel.

The building envelope has had little major maintenance or major capital renewals investment in recent

years. As such, the aging and poor performance level of the envelope is starting to have a negative

impact on parts of the building interiors and some structural elements that are sustaining damages

particularly at the rear parts of the building areas. Significant capital expenditure is warranted in the

Yarmouth Area Industrial Commission Dominion Textiles Building Facility Page ii of ii 236 Water Street, Yarmouth, NS Final Capital Reserve Fund Study November 2014


immediate to short term to maintain the building to a reasonable standard. The major expenditure items in

the short term include the building walls, structural timber repairs, roofing, and the rear elevation 3 storey

damaged structure and adjacent garage.

Taking into consideration the age of the building and original building wall envelope elements, we do not

consider that the scope of works required is unwarranted or should be construed as largely unexpected.

An options analysis for three potential work implementation scenarios is included for the demolition and

vacation of the building, partial demolition and repairs, and total rehabilitation repairs.

We recommend that a workshop meeting take place with YAIC to discuss the contents of this study,

options presented, potential other options, and to agree on the appropriate way forward taking into

consideration any economic impacts, and the real estate value of the Domtex facility.

Yarmouth Area Industrial Commission Dominion Textiles Building Facility November 2014 236 Water Street, Yarmouth, NS Final Capital Reserve Fund Study


TABLE OF CONTENTS

EXECUTIVE SUMMARY..............………………………………………………………….……..…..i

1.0 INTRODUCTION………………. .......................................................................................... .…..1

2.0 SCOPE OF WORK.................................................................................................……….. .…..1

3.0 BACKGROUND............................................................................................………………. .…..2

3.1 Overview of Past History………………………………………...................................…................2

3.2 Property Classification & Building Occupancy… ……………...................................…................2

4.0 BUILDING ELEMENT ASSET SUMMARY FINDINGS...………………………………................3

4.1 General Layout............................………………………………………...................................…...3

4.2 Building Elements...................................................................................................................... 4

4.3 Structural Frame & Building Envelope.............................. …………………………………………5

4.4 Building Interior Finishes ......................................................................................................... 17

4.5 Mechanical......... ..................................................................................................................... 19

4.6 Electrical............... ................................................................................................................... 22

5.0 SHORT TERM FINANCIAL CAPITAL WORKS OPTIONS REVIEW .................................…. 23

6.0 SUMMARY......... ................................................................................................................ .....25

7.0 CONSULTANT QUALIFICATIONS…. ........................................................................... ........ 25

8.0 LIMITING CONDITIONS…. ............................................................................................... .... 26

Yarmouth Area Industrial Commission Dominion Textiles Building Facility Page 1 of 27 236 Water Street, Yarmouth, NS Final Capital Reserve Fund Study November 2014


1.0 Introduction

BRK Engineering Inc. (BRK) was retained by the Yarmouth Area Industrial Commission (YAIC) in May

2014 to prepare a Capital Reserve Fund Study of the principal building elements at the Dominion

Textiles Facility (Domtex), located at 236 Water Street, Yarmouth, NS.

Domtex is owned, managed, and operated by the YAIC. Three local government municipal authorities

that include the Town of Yarmouth, Municipality of the District of Yarmouth, and the Municipality of

Argyle each have an equal financial stake in the YAIC and Domtex in terms of the operations, rental,

and capital financing required to maintain the building facility.

The primary objectives of the assignment was to assess the current conditions of the principal building

elements and prepare a resulting opinion of the capital costs required to maintain the building to a

reasonable standard over various time horizons. Also, where appropriate the scope of work included

the development of a resulting options analysis for the Domtex facility based on the reported and

observed findings during the condition review.

The options analysis was required so that the stakeholders could understand the capital building costs

required to maintain Domtex facility to a reasonable standard, which could then be compared with the

current income that is generated, and potential for future rentable income in the local market place.

This report summarizes the findings of the top surface visual reviews undertaken by Michael Williams,

P. Eng of BRK in May and June, 2014. The scope of work carried out is presented in Section 2.0;

background in Section 3.0; findings in Section 4.0; options analysis and capital budget costs in Section

5.0; summary in Section 6.0; and limitations associated with the assignment in Section 7.0. Sample

photographs to highlight the current conditions at the principal building elements are included in Section

4.0.

2.0 Scope of Work

The scope of work included the following:

1. Project initiation meeting with Mr. John Sullivan of the Municipality of Argyle to discuss the

project objectives, work plan options development, and expected reporting outcomes;

2. Data collection and review of drawings, and past consulting studies undertaken at the Domtex

Facility;

3. Review of past capital or the more major maintenance works undertaken in the past 10 years or

so;

4. Carry out a top surface and non destructive visual review of the principal building elements with

representatives of the YAIC staff and Mr. John Sullivan;

5. Prepare a capital reserve fund study report and capital budget costs for the replacement and

major repair building elements in the immediate term and short term, medium term, and longer

term horizons with a focus on the initial 5 years; and

6. Develop the following budgetary option scenarios:

Maintaining the building facility in its current form

Full or partial demolition of the building parts that are owned by the YAIC and

associated making good works to the structure or structures that remain in place.



3.0 Background

3.1 Overview of Past History

The original Domtex plant was founded as the Yarmouth Duck & Canvas Co. in 1883 to make sail

canvas and it later switched to other industrial fabrics to stay in business. The company eventually

became Dominion Textile Incorporated. In 1991, after approximately 110 years of operation, the

Domtex plant closed that left a facility that would prove difficult to sell.

Efforts since 1993 by the YAIC have focused on adapting the former Dominion Textile plant to a mixed-

use facility to create long-term jobs. Between 1993 and 1996, the federal and provincial governments

provided support to complete necessary improvements to improve the building facilities. It was

reported that upgrades were made to the electrical and sprinkler systems, access roads and parking

areas were improved, and unstable sections of the property were removed. Other more recent capital

replacement or more major cost upgrades include the heating plant and associated piping, and

separation from the WarpTech building facility located at the other side of Water Street, sprinkler control

systems, and various interior fit ups that included a bingo hall.

3.2 Property Classification & Building Occupancy

According to the property plan prepared by R.V. Potter Surveyors in November 1994 (outlined below)

the area of the Domtex facility that is owned by the YAIC is located within the boundary of Lot 2

(indicated by the red arrow).

The building area to the south is owned by Novatec Braids Limited (indicated by the blue arrow at 234

Water Street). The building areas to the north are owned by Germain Mechanical & Electrical Limited

(indicated by purple arrow at 240 Water Street), and P. R. Gahan & Sons Limited (indicated by black

arrow at 242 Water Street).

The Domtex property is zoned as Waterfront Industrial (M2). The total floor space of the building is

approximately 150,000 square feet.

The current tenants at the Domtex facility are reported to include the following companies and municipal entities:

Midland Courier Granite Counter Top East Coast Cabinets Electrobraid Fence Limited Lower East Eco Products Yarnsmith Fiber Works Cassa Business Equipment Municipality of Yarmouth Town of Yarmouth Novatec Braids Limited



Acadian Seaplants Limited

Warptech The Domtex facility is not fully occupied and fairly large potential rentable areas of the building are

vacant. It is reported that the YAIC operates with a negative cashflow.

4.0 Building Element Asset Summary Findings

This section of the report provides an overview of the principal top surface building element conditions.

For reference, the front elevation facing Water Street is designated as the building east elevation.

4.1 General Layout

The plan of the Domtex facility is illustrated below. The areas outlined in red form part of the Domtex

building that is owned by the YAIC.

The building is predominantly 3 storeys high with single storey high building areas located at the front

and to a greater extent at the rear elevation. At the front elevation at the main administration entrance

the single storey addition is not of original construction and houses the administration offices that for the

most part are currently unused (indicated by the red arrow).

Front East Elevation (facing Water Street)

At the rear west facing elevation the building reduces in height to single storey (area occupied by East

Coast Cabinets indicated by the red arrow) and the loading docks are all single storey.



Rear West Elevation (facing Yarmouth Harbour)

The interior building areas principally include the following:

Partial basement at the rear elevation that houses some building facilities equipment.

Level 1 administration offices; corridors; stairwells; vacant and partially occupied room spaces

by some smaller tenants; washrooms; vacant former bingo area; kitchen, office & washroom for

YAIC staff; YAIC carpenters shop, Midland Courier offices and kitchen area; heating plant

room; and warehouse used by Granite Counter Top.

Level 2 corridor; stairwells; large open spaces partially occupied by Electrobraid Fence Limited,

and washrooms.

Level 3 corridor; stairwells; large open spaces that are partially used by Novatec Braids Limited

as overflow storage; vacant finished commercial or office spaces with a kitchenette and

washrooms.

4.2 Building Elements

The configuration of the structural load bearing elements varies at differing parts of the building but

principally consists of concrete and masonry foundation walls; exterior mass brickwork walls; interior

timber columns of various shapes; steel, timber and flitch beams some of which have metal tie-rods;

intermediate timber plank flooring and roof decking; and timber framed and brick masonry partition

walls. The rear elevation basement is slab on grade or gravel that at the main level has timber joists

with stud framing or metal jack posts at the underside.

The principle building wall envelope has a stucco waterproofing coating, which is applied at the majority

of the mass clay brick load bearing walls. The smaller buildings that include the rear elevation loading

docks, garage, and heating plant have vertical ribbed metal siding, brick, or concrete block walls. At the

front elevation administration addition there is a brick cavity wall. The window units consist of original

glass block walls and vinyl framed punched window units that are located as inserts in the glass block

wall areas, and wood framed windows with aluminum storm window coverings are located at the front

administration building. There is a combination of wood framed and vinyl framed window units in the

mass brick walls. All of the window units have concrete sills that are set in the mass brick walls. The

two leaf main stairwell doors at the left side of the front elevation are anodized aluminum framed

sections with full double glazed lites. The secondary doors and loading dock doors are painted metal

slab units set in a metal frame.

The majority of the roofing assemblies consist of built-up tar and gravel roofing with a smaller area of

SBS modified bituminous assembly, and sloped asphalt shingles located at the rear elevation at levels

1 and 3. A rear loading dock area has corrugated metal roofing. The rainware consists of metal and

PVC gutters, scuppers, and downspouts.

The principal building systems include the underground and above ground drainage and plumbing

conveyance piping and pumping; materials conveyance elevator; main electrical supply, panels, and

secondary distribution; lighting; emergency lighting, domestic and fire water supplies; above ground fuel



oil storage tanks; heating plant and distribution; hot water heating, storage & distribution; ventilation;

sprinkler system, and fire alarm control panel with reported off site monitoring.

4.3 Structural Frame & Building Envelope

4.3.1 Structural Frame

The concrete and masonry foundation walls are for the most part concealed. There were no signs of

uniform or differential settlement and any significant corresponding cracking associated to the

foundations at the exterior building walls above grade. No major expense is anticipated for this part of

the structure in the short term (0 to 5 years). There are some concrete repairs required at the rear

elevation YAIC office/kitchenette area where the reinforced concrete beam has delaminated and

spalled, and the reinforcing steel is exposed and corroded. This is not a major repair expense. This

general condition also applies to the rear loading dock concrete and metal structures, and walls that are

in an aging and generally weathered condition.

The general arrangement of the timber columns and beams varies at differing parts of the building. At

the central finished or rentable core of the building the columns are in two rows with a further row at the

rear corridor that are of varying shape at each of the three floor levels. The typical structural geometry

is shown below.

Within the structure the columns, column caps, beams, and tie-rods appeared to be in reasonable

condition with no notable deflection of the beams or buckling of the columns. However, there are a high

number of timber beams that have end bearings into the mass brickwork load bearing walls that are

rotting at the ends at levels 1, 2 & 3 within the three storey part of the building, and at the single storey

rear elevation structures. This is due to water migration and transfer through the brick walls that now

have an inadequate saturation matrix, roof leakages, and localized saturation of the walls due to the

condition of the gutters or absence of gutters. Some of these areas are highlighted in Section 4.3.2.

The extent of the rot and effect on the structural members cannot all be assessed visually without some

form of intrusive brick unit removals and a detailed assessment of every single timber and decking

element from staging. It was reported by YAIC staff that the same elements had repairs undertaken at

the rear elevation workshop.



Where noted there are longitudinal splits that considerably reduce the strength of the timber members,

which are now a structural concern and these need to be addressed in the short term. Sample areas

are presented below.

Based on the areas reviewed we are of the opinion that repairs will potentially be in the order of

$400,000.00 that are tied into the repairs required at the building wall envelope, roofing and rainware,

which is presented in Sections 4.3.2 and 4.3.3.

($400k within 5 years)

At the front left elevation stairwell the roof framing is painted timber with wood plank decking as shown

below.

From the top landing the structural timber framing elements appeared to be in good material condition

with no signs of water related damages.

At the front elevation spanning across Water Street is a structural steel frame that is reported to be

redundant and housed utility connections to the WarpTech facility. The structural metals are corroding

and it is considered probable that asbestos lagging surround the service piping. Removal of the

structure is now warranted. The budgeted cost for the hazardous materials assessment, road closure,

traffic controls, staging, removals, disposal, and making good works is circa $25,000.00.

($25k within 3 years)

4.3.2 Building Wall Envelope

The mass clay brick walls are original and are approximately 110 years old and are considered a

stacked barrier wall assembly. This type of wall system was common place at commercial and

industrial buildings of this structural layout and size at the time of building construction at the industrial

and urban areas of Europe and North America.



A barrier wall assembly for this type of wall is a term used for a wall system that relies on the quality

and mass of the walls to manage and negate water migration through the cross section of the wall.

Hence, the wall section and building wall openings have no internal water management control

features.

The walls are principally covered with a stucco or parged waterproofing coating. The age of the coating

application is unknown, but is not original and would only have been applied to mitigate water transfer

through the cross section of the wall assembly in lieu of brick unit replacements and re-pointing. The

typical life expectancy of a well adhered and applied coating system in this application given the

environmental exposure is circa 25 to 30 years.

The top surface condition of the coating varies from very poor to fair. There are substantial areas

where the coating has cracked, delaminated, and become detached from the clay brick substrate

particularly at the majority of the rear elevation walls. The coating is no longer effective at a high

percentage of the overall wall surface areas and is beyond its service life.

There are significant areas of the mass brick walls and a number of concrete sills that are in an aging

and deteriorating condition and substantial repairs are now warranted in the immediate to short term

(within 5 years). The deteriorated conditions principally include the erosion of the mortar joints, brick

unit spalling that has delaminated the coating, and cracking particularly at a number of column and

arched brick wall sections. The latter is not uncommon based on the age of the building and condition

of the mortar matrix and can be fixed by structural wall pinning and partial reconstruction. These

material related degradation conditions are a primary consequence of age, environmental conditions,

and in particular the cyclic freezing and thawing that regularly occurs in the region. A sample of the

deteriorated conditions at the rear elevation and to a lesser extent at the front elevation walls is

presented and highlighted below.

Rear Elevation

Rear Elevation



Rear Elevation

Rear Elevation Levels 2 & 3

Rear Elevation Level 3

Front Elevation Levels 1, 2 & 3

Front Elevation Level 1

As highlighted in Section 4.3.1 there are a high number of areas where there is water migration through

the brick walls into the interior of the building. This condition occurs to varying degrees at all 3 levels of



the building. In addition there are a number of water entries associated with the roofing and rainware.

This is presented in Section 4.3.3.

Examples of where the wall saturation occurs are evidenced by the efflorescence, peeling paint

(caused by damp walls) and surface contaminants on adjacent paper faced drywall that is a catalyst for

mould growth. The latter is confined to the right front viewing level 3 egress stairwell that needs to be

remediated in the immediate term in accordance with NSEL regulations and procedures.

Front Elevation Right Stairwell Walls Level 3

Front Elevation Left Stairwell Walls Levels 1, 2 & 3

Front & Rear Elevation Walls Level 3

Rear Elevation Walls Level 3 (South & Central)



Rear Elevation Walls Level 3 (North)

Midland Courier Office Space & Level 1

At the rear elevation the semi solid concrete block walls below the 4 bay wide loading dock area are in

poor condition and warrant reconstruction, waterproofing coating, and new bumpers applied as

indicated below.

The concrete block walls that bound the rear elevation heating plant room are in fair surface condition.

There is some horizontal, vertical, and stepped diagonal cracking where no vertical control joints were

installed. The waterproofing coating is wearing and wall repairs and coating is warranted within 5 years.

At the front elevation offices there is a brick cavity wall whereby the brickwork is laid in a traditional

stretcher course as indicated below. The brickwork, mortar joints, and concrete sills are in fair top

surface condition. The wall assembly was not constructed to industry or masonry code standards due

to the usage of non galvanized lintels, no through wall flashings and weepholes, but given its lower

exposure level and wall elevation it is sometimes possible for these defects to not result in water

infiltrations.



Building Wall Openings

The doors and windows at the building are in various states of condition. The original glass block walls

have a number of cracked units at a high number of glass block window wall locations and if maintained

need to be reworked and the cracked units replaced or be replaced as a whole. The wood framed

windows are aging and the frames are beginning to rot at the rear single level buildings. The vinyl

framed insert windows set at the top level of the glass block walls could not be assessed due to the

location. It was reported that the vinyl window units in these locations are circa 20 years old and are

nearing the end of the typical 25 to 30 year life expectancy. The wood framed windows located at the

front elevation administration offices are covered with storm windows and are in average condition.

The rear elevation garage and loading docks doors are in various states of condition and it was

reported that the age of the units vary. Not all of the door units are used. The painted metal slab and

glass lite service and unit space doors located at the front and rear elevations generally exhibit an older

appearance, and at a high number of units there is corrosion of the metal frames and parts of the door

slabs.

At the stairwell doors located at the front elevation the door units are in an aging condition. The

weather stripping is in poor condition. The single swing door unit at the front elevation to the

administration offices is in a fair condition but the weather-stripping all needs replacing.

The window and door units with the exception of the garage and loading dock areas where this

comment does not apply have a poor energy performance level and have limited resistance with

respect to air and water.

The entry doors to the stairwells and tenant unit locations and the majority of the windows will warrant

repairs and replacement within the next 5 years or so.



Taking into consideration the current deteriorated conditions at many areas of the building wall

envelope, reasonably good access, and scaffold requirements we recommend that a global budget of

$3,500,000.00 be set aside within the next 5 years for rehabilitation and replacements at the building

wall envelope for which the rear elevation walls are the highest priority. A number of options exist that

extend from coating removals, partial brick replacements, mortar repairs, and recoating, to repairs and

cladding over the existing facades in places with metal siding once structural wall pinning works are

undertaken to tie the masonry wall together.

(Major Repairs & Renewals - $3.5 Million)

Rear Elevation 3 Storey Building Area & Adjacent Garage

At the rear elevation of the building there is a 3 storey building structure that extends westwards from

the main rectangular part of the building that has extensive water related damages at all levels

occasioned by a failure in the roofing assembly, which was reported to have occurred in 2013/2014. A

sample of photographs is presented below that show the current exterior roofing and interior structural

and finishing conditions. All of the interior finishes and timber structural elements at the top level are

extensively damaged. Of most concern is the deflection at the timber beams at the underside of the

timber plank roof decking.

The single storey garage to the south side of the structure is also in a deteriorating condition and it was

reported by YAIC staff that this space is surplus to current operations. The roof decking is rotten,

underlying insulation is wet and exposed, and the asphalt shingle roofing requires replacement.

Sample photographs are provided below that show the structures location and current conditions.

The budgeted cost for the clean-up, removals, disposal, and replacement of the damaged structural

timber beam elements, roofing, and interior finishes so as to restore the building area to create a usable

space is estimated at $1.1 million.



An estimate provided by a demolition and removals contractor to YAIC in June 2014 excluding

environmental hazardous materials removals (environmental survey and sampling would be required to

quantify the extent of any hazardous materials) and tipping fees was $260,000.00.

It is recommended that YAIC consider due to the surplus amount of building area that is vacant at the

building facility that the structure be demolished and allowing for making good and new wall assembly

works required around the elevator shaft and adjacent walls that a global budget of $600,000.00 be set

aside for the immediate term.

In the interim it is recommended that the area be boarded off to negate entry for persons into what is

now considered a potentially dangerous and hazardous structure due to the damages to the structural

timber beams in particular that are deflecting at level 3.

(Demolition & Associated Works - $600k in 2014/2015)

4.3.3 Roofing

There are three principal types of roofing assemblies at the Domtex facility. In general terms the

majority of the built up low slope and flat roofing, asphalt shingle roofing, and Styrene Butadiene

Styrene (SBS) modified bituminous roofing are in an aging and poor condition and are either at or

beyond the typical service life of 25 years.

Top Level Flat Roofing The top level low slope roofing assembly area is rectangular and extends at the front elevation to

include the front elevation right stairwell, and at the rear elevation to include the area of roofing above

the former vacant finished commercial or office space. The roofing has adequate sloping in two

directions from the centrally raised ridge points to the perimeter metal gutters, scuppers, and

downspouts (some replaced with ill fitting PVC sections) located at the front and rear elevations. At the

juncture with the Novatec Braids building there is a raised firewall that is counter flashed with aluminum.

The approximate area of the roofing is 41,000sqft, which excludes the area of the entire detached and

peeled back SBS modified bituminous roofing area presented in Section 4.3.2.

The built up low slope roofing assembly is in poor condition and despite small partial replacement areas

at past and current water infiltration areas the roofing is in immediate need of replacement. There are

many areas particularly at the south side of the roof where the roof has blistered, cracked, and

bellowed. Water has penetrated the underlying roofing felts and insulation and is entering the building

interior causing some significant damages to the building finishes and structure.

Water within the roofing assembly was widespread and the infrared scan indicated moisture at

approximately 70% of the total roofing area. As there is no ability for adequate drying it is considered

highly probable that there are likely a number of areas where deterioration has occurred to the topside

of the wood plank decking, which in all probability would need to be replaced in part when the roofing is

replaced. The perimeter metals and metal flashings at the juncture with the brick shaft at the rear

elevation are in poor condition and some of the brick units are spalled and bulging. At the north end of

the roof the perimeter metal flashing is missing allowing water to enter at the top of the wall assembly.

The following illustrations highlight the top surface conditions (red areas show example areas of the top

surface roofing defects outlined above).



Top Level Roof Looking North From Left Stairwell/Elevator Shaft

Top Level Roof Examples of Typical & Widespread Defects

A sample of the some notable level 3 interior water infiltrations areas is presented below.

At the top level roofing that extends at the rear elevation to include the area of roofing above the former

vacant finished commercial or office space there is widespread roofing failures as indicated by the

bellows, blisters, and alligator type. All of which are common signs of an aging and failed roofing

assembly.

Top Level Roof Extension @ Rear Elevation

A sample of the more notable level 3 interior water infiltrations areas at the suspended ceiling tile and

drywall walls is presented below that correlate with the above roofing area.



The replacement of the roof with a 2 ply SBS modified bituminous assembly over a fire rated protection

board and vapour barrier, allowance for concealed roof deck repairs, and rainware replacement is

budgeted at $700,000.00 in 2015.

(Renewals - $700k in 2015)

Top Level Roofing above the front left stairwell, and rear elevator shaft & redundant elevator shaft

The redundant structure on the top level roof surface is recommended to be removed. The SBS

modified roofing at the front right stairwell is in good condition and overall occupies a small surface

area. The asphalt shingled hipped roofing at the elevator shaft is in fair condition but replacement is

anticipated within 5 years. The perimeter wood fascia boards at the two roofing areas are weathered

and rotting, and replacement and cladding with aluminum is recommended in the short term.

Due to the location of the roofing and safe working access requirements a budget of $20,000 has been

allocated for removals and repairs in 2015 to take advantage of the site set up for the main roofing area

and demolition of the rear structure.

(Renewals - $20K in 2015)

Top of Level 1 Rear Elevation Roofing above the Carpenters Shop

The roofing assembly above the carpenters shop is an SBS modified bituminous roofing assembly that

was reported to be circa 25 years old and has had patch repairs undertaken since the original

construction. The cap sheets are in fair to poor condition. The roof slopes in one direction to the rear

elevation. The roof tie-ins to the main building walls are in poor condition and there is water infiltrations

occurring at the main building wall line causing damages to the structural timber beams and wood plank

decking. The perimeter metals and rainware at the free edge of the roof are in poor condition and

saturation of the building walls is occurring. The roof location, top surface layout, and an example of the

interior damages are shown below.



The area of the roof is approximately 2,300sqft and replacement is warranted in the immediate term. A

replacement budget of $38,000.00 has been allocated for 2015.


Top of Level 1 Rear Elevation Roofing above Granite Counter Top & Midland Courier The roofing assembly above the Granite Counter Top & Midland Courier interior spaces is of the same

type as the top level roofing assembly. Rainwater from the top level roof discharges onto the top roof

surface above Granite Counter Top. There is quite widespread moss growth at the topside of the pea

gravel that is a sign of poor drainage and is detrimental to the durability of the roofing assembly. The

top surface condition of the roofing assembly is the same as the top level roofing though there was no

significant signs of water entry compared to the other roofing areas at the building interior. A cut test is

recommended in the short term to determine the underlying conditions. The area of the two separate

roofing sections is approximately12,600sq.ft.

Subject to intrusive viewing the replacement of the roof, allowance for roof deck repairs and rainware

modifications is budgeted at $160,000.00 in 2017.

(Renewals - $160k in 2017) Top of Level 1 Heating Plant Roofing The flat roofing assembly above the heating plant room is an inverted roof membrane assembly

whereby the gravel ballast overlies the reported rigid insulation and roofing membrane. There were no

reported water infiltrations. The location and top surface views are presented below.

It was reported that the roofing is circa 5 years old. As such, we have allocated a remaining life

expectancy of 20 years and have budgeted $15,000 for replacement in 2034.

(Renewals - $15k in 2034) Top of Level 1 Roofing above Front Elevation Administration The roofing assembly above the single storey administration addition at the front elevation is an SBS

modified bituminous roofing assembly that was reported to be circa 10 to 15 years old. The cap sheets

appeared to be in good condition though due to access we did not assess the roof tie-in at the brick

walls. There were no reports or noted interior water entries at the interior ceilings.



We have budgeted for replacement in 2025 at $15,000.


4.4 Building Interior Finishes

For the purposes of this study it is assumed that the interior partition walls have an indefinite life

expectancy and any tenant moving repairs or the like, painting of the building interiors and adhoc

interior door unit replacements would be allocated to a general O & M account as the need arises or

would be included as part of a tenant leasehold improvement package.

In general terms the interior face of the mass brick walls, interior partition walls, and structural timber

and metal elements are all painted. The interior flooring is a combination of hardwood, plywood, VCT,

and hard tile. The ceilings are either painted decking or suspended ceiling tile.

A sample of the current conditions in addition to those presented in Section 4.3 is presented below at

various building room or space areas.

Level 3

Level 3 at Rear Elevation Extension



Level 2

Level 1

Midland Courier & Washrooms

Generally, the central core and corridor areas at levels 1 to 3 are in a reasonable condition. The

stairwells are in fair condition. The paint at the interior faces of the mass brick walls is peeling at a

number of places due to the dampness of the exterior walls at a number of wall and some ceiling areas

due to water infiltrations as reported in Section 4.3. The washrooms at the upper levels are generally in

poor condition. The level 3 vacant space at the rear elevation has extensive water damages and the

ceiling tile in the corridor and one room space is extensively damaged. The front elevation level 1 office

spaces are generally in poor condition. The rear elevation tenant spaces are in fair condition. The rear

elevation workshop and utility room spaces are in fair condition, but are appropriate for the room usage.

The rear elevation YAIC room, kitchenette, and washroom with adjacent shower are in fair to poor

condition.

The level of investment to the interior finishes will we assume be a function of tenant leasehold

improvements or be based on the portions of the building that are occupied.

At this time we have assumed that YAIC staff would carry out interior flooring repairs, refinishing,

painting and ceiling tile replacements to the larger vacant, common area stairwells and corridor areas

as needed, which assuming the works are not all carried out at the same time would be below the

report threshold value.

(Maintenance & Renewals – O & M Account/Leasehold Improvements)



4.5 Mechanical

4.5.1 Drainage Systems

The below and above ground storm water, sanitary drainage and vent piping systems are for the most

part concealed elements. Drainage systems include the following:

Sanitary piping and stacks where they connect to their respective conveyance lines and exit the

building to the municipal drainage mains. Sanitary tank and pumping located below the

carpenters workshop as shown below.

The visible exterior and interior storm water rainware and sanitary waste piping is a

combination of PVC plastic, copper, and cast iron stacks and leaders.

The condition of the buried and concealed piping cannot be evaluated visually. We recommend that

drains be flushed and scoped routinely. This maximizes the service life of the piping and also helps

identify repair needs. We assume this will be done as part of ongoing maintenance. The exterior storm

water rainware is covered in Section 4.3.3.

(Maintenance - O & M Account)

The cast iron plumbing piping and reported asbestos cement underground drainage has a typical life

expectancy of 80 to 120 years. There were no recently reported piping material failures though there is

ample evidence of PVC waste piping replacements at the building. We do not envisage any major

scheduled change out works within the initial 5 year study term of the reserve fund. However, drain

repairs are likely to continue to be required during the longer 25 year study term, which should be

allocated to the annual O & M account.

It would be prudent that a CCTV survey at sample runs of the vertical plumbing risers and drainage

systems be carried out in the short term as this will define the current interior piping conditions.

Samples of the existing riser piping should be assessed and if need be a sample section should be cut

out for analysis. The results should then be included in the next study update in 5 years.

(Testing in 2016 – Expense to O & M Account)

(Renewals – Next Study Update in 2019 Based on Survey Results)

4.5.2 Domestic Water Supply & Distribution

Domestic water is distributed through the building through a series of risers. Where seen and not

lagged in the washrooms the distribution piping is copper. We believe that the piping dates are of

varying ages. Based on the reported absence of major problems, full riser replacements are not

expected to be needed within the initial 5 year study term. We assume that any isolated pinhole leaks in

the risers will be addressed as part of ongoing maintenance. Any recirculation piping replacements

should be allocated to an annual O & M account.

(Maintenance - O & M Account)



4.5.3 Heating & HW Plant

Fuel Oil Storage Tank

There is a ULC listed above ground double wall fuel oil storage tank located at the south side of the

heating plant room. The tank is date stamped 2008.

The copper fuel lines are encased in plastic tubing as industry standards. The life expectancy of the

tank is typically 25 years though this is governed by the building insurers who should be consulted on

what the policy requirements are. It was reported that the tank was purchased for $20,000.00 and we

have allocated $25,000.00 for tank renewals in 2033 to cover the longer term study period.


Central Heating & Hot Water Plant

The building is heated by two oil fired Hurst boilers that were reported to have been installed 4 years

ago at a cost of $70,000.00. The boilers exhaust to two separate ULC stainless steel chimneys. The

heating system was reported to be working adequately and is serviced on an annual basis. The boilers

should last approximately 30 to 40 years with annual maintenance and we do not anticipate any

significant work required for the heating system over the next 25 years above normal parts

replacements, which are normally expended from an annual O & M budget.

(Maintenance – O & M Account)

(Renewals – Future Study Updates)

Heating Distribution

The distribution system includes the following:

Distribution piping from the boiler plant to the ceiling or wall hung heaters and wall radiators.

Pumps, valves, isolation, tanks, flow control valves, shut-offs etc located throughout the

system.

No operational problems were reported with the heating distribution system other than the LAPD tenant

reporting heating issues this past winter that needs subsequent investigation. The system components

(excluding the piping) have varying expected service lives ranging from 20 to over 50 years. Due to the

size of the systems, the individual components can likely be repaired or replaced as required at a cost

below the major cost item report threshold of $15,000.00. The distribution piping is mostly concealed

behind interior finishes or pipe lagging. In addition, the condition of the internal pipe walls cannot be

determined without destructive cut tests or ultrasonic testing. With diligent regular maintenance and

proper water treatment, these systems can often last 50 to 80 years without total replacement.

However, in some instances they may require major repair if not properly maintained, or if there are



concealed conditions which we cannot evaluate. We have carried a repair 'allowance' to cover the

unknown conditions in a mechanical contingency.

(Mechanical Contingency)

Heaters

The building is heated with ceiling and wall hung heaters and part radiators concealed by covers. The

heaters have shut offs and are controlled by valves with assumed pneumatic activation and

thermostatically controlled. In all probability there will be heaters that will warrant adhoc replacements

within the term of this study. We have assumed that individual heaters can be replaced as needed from

the annual O & M account or mechanical contingency.

(O & M Account or Mechanical Contingency)

4.5.4 Ventilation/Exhaust Systems

The ventilation systems vary by building part. There are motorized exhaust fan units and prepackaged

HRV units that are ducted to various building parts. The performance levels and the age of all the

assembly parts are unknown. At a sample of the washrooms reviewed there is not adequate venting.

This is not a major expense. Maintenance and renewals is allocated to the mechanical contingency.

(Maintenance – Mechanical Contingency)

4.5.5 Fire Protection – Sprinkler System

The fire protection system at the building consists of sprinkler system risers and distribution piping

throughout the building areas with sprinkler heads. The age of the piping and system parts varies.

There was no record of each building area installation. There is fire connection hydrants located on the

property. It was reported that the system is inspected and maintained on an annual basis. Other than

maintenance we do not anticipate the complete change out of the system within the term of this reserve

fund. Maintenance item works will include pipe length replacements, valves and fittings, sprinkler

heads, etc which have a reported life expectancy of circa 40 years and the sprinkler valve and alarm

every 20 to 25 years, which have been included in the mechanical contingency allowance.

(Maintenance – O & M Account)

(Replacement Parts – Mechanical Contingency Allowance)

4.5.6 Generator

It was reported that the standby diesel generator is circa 60 years old and together with the diesel

storage tank are not in service. As such, we have not budgeted for replacements.

4.5.7 Elevator

There is a single industrial truck loading elevator that is rated at 7720 kg, which was manufactured by

Dover. The elevator is not intended for passengers other than the operator.

The elevator is currently licensed for service by NSEL to 2015. The age of the elevator is unknown and

is we assume inspected and maintained under an annual servicing contract from an O & M account.

(Annual Inspection & Maintenance - O & M Account)

4.5.8 Mechanical Contingency Allowance

The mechanical systems are for the most we assume inspected and maintained from an annual O & M

account. There will be instances where pumps, equipment, valves, piping and other mechanical



system components will require replacement ahead or of more frequency than allocated in Section 4.5

or perhaps the annual O & M account. Therefore, due to the current amount of building mechanical

systems present we have allocated a contingency allowance of $50,000.00 beginning in 2015 and

every 10 years thereafter for unforeseen or premature equipment deteriorations.

(Contingency Allowance - $50k in 2015, 2025 & 2035)

4.6 Electrical

4.6.1 Power Supply & Distribution

The primary power service to the building is provided by Nova Scotia Power. The main electrical

equipment and distribution is of varying age dependent on the tenant’s space. The electrical equipment

distribution and accessories should for the most part last the life of this study and only maintenance

items and costs are anticipated. We recommend that a licensed electrician or electrical engineer be

retained to undertake a detailed condition assessment including an infrared scan of all the electrical

panels at the building within the next 5 years.

(Electrical Contingency)

4.6.2 Lighting

At the interior of the building there is a combination of wall and ceiling mounted lighting fixtures, which

for the most part consist of metal halide and fluorescent fixtures.

The change out of the lighting fixtures will vary and would normally occur on a fixture by fixture basis or

part of a leasehold tenant package. Therefore, replacement can either be allocated to the annual O &

M account or the electrical contingency as the need arises.

(O & M Account or Electrical Contingency)

The exterior lighting fixtures at the front elevation warrant replacement or installation as noted below

that is below the report threshold cost.

4.6.3 Emergency Lighting

Wall mounted light fixtures are located in the corridors, stairwells, and some room spaces that provide

emergency lighting. Illuminated exit signs are located above egress door locations. These are normally

inspected and tested on an annual basis. Replacement is not a major cost and is normally allocated to

an annual O & M account as the need arises.

(O & M Account)



4.6.4 Fire Protection

Egress, Fire Detection & Alarm Elements

Two stairwells at the front of the building provide egress from each floor area. The exits are marked by

illuminated exit signs. Emergency lighting is provided in the egress path. The guardrails consist of

painted steel system. No analysis has been carried out to determine the adequacy of the exit facilities

with respect to code requirements. They generally appear to have been maintained as originally

constructed. The system elements consist of ceiling mounted smoke/heat detectors. The fire alarm

control and monitoring panel is located in the main lobby of the front elevation left stairwell. Subsequent

to our site review it was reported that the system is currently being upgraded. As such, we have

assumed that there will be no further significant works required within the study term.

The fire alarm panels and fire safety systems should be inspected and tested on an annual basis, which

is normally covered under the annual O & M account.

(Inspection & Maintenance – O & M Account)

4.6.5 Electrical & Controls Contingency

We recommend that an electrical contingency allowance of $20,000 be included to cover those items of

repair that exceed normal maintenance and any secondary panel replacements and system elements

would be allocated to this allowance starting in 2015.

(Contingency Allowance - $20k in 2015, 2025 & 2035)

5.0 Short Term Financial Capital Works Options Review

Taking into consideration the level of capital investment required to rehabilitate and restore the building

facility to a reasonable standard within the next 5 years we have prepared three potential project

scenarios with associated budget costs. These are presented overleaf in Tables 5-1, 5-2, and 5-3.

The option for selling the facility as is or with some improvements is not within the expertise of the

consultant, and is ideally suited for a real estate company to evaluate the market value of the building

facility.

In addition, we do not consider that vacating the building and hoarding the building off is a viable option

for liabilities remain with YAIC and the structure will continue to deteriorate more rapidly. Furthermore,

responsibilities for works remain if adjacent owners sustain damages to their buildings as a result of

deterioration to the Domtex facility.



Table 5-1: Option 1 – Complete Demolition of Building Facility

Item No Work Element Net Budget Cost Outline Comments

1. Environmental Assessments (EA) Phases 1 & 2 & Potentially Phase 3 & Hazardous Materials Assessment

$60,000.00 Required to quantify hazardous materials that will have an impact on the cost of Item 2, and EA requirements. The need and scope of a Phase 3 assessment would be subject to the findings of Phases 1 & 2 and any information on the past history of the site.

2. Demolition of Structure, disposal to Yarmouth landfill & reuse of brick to infill basement areas and building footprint with Type 1 gravels.

$1,100,000.00 Based on demolition contractors price to YAIC in June 2014 and assumes debris can be tipped at the Yarmouth landfill with no tipping charges.

3 Mobilization, scaffold, making good works that would be required to the brick walls that remain, brick wall infilling, waterproofing of walls to the three building structures that remain, allowance for service disconnects and utility alterations.

$800,000.00 Subject to confirmation of underground drainage & utility layouts and final designs for building walls that remain in agreement with owners.

4. Credits for Owners Equipment & Interior Elements

($100,000.00) Global figure and needs to be better quantified but would include machine shop tools, tanks, heating plant, furnishings, fittings, some interior doors, garage/loading dock doors, lighting fixtures etc. There is not a high value of furnishing elements & would be subject to market interest.

5. Sub Total $1,860,000.00

6. Engineering & Contingency @ 20% $372,000.00 Detailed Designs, Tender Documents, Legal Survey, Contract Administration & Project Contingency.

7. Total Budget Net Cost $2,232.000.00

Table 5-2: Option 2 - Partial Demolition of Structures and Principal Short Term Building

Envelope Capital Works

(Demolition areas are covered under Section 4.3.2 of the report and short term works are 0 to 5 years)


1. Hazardous Materials Assessment $5,000.00 Required to quantify hazardous materials that will impact the cost of Item 2.

2. Demolition of rear structures, disposal to Yarmouth landfill & reuse of brick to infill basement areas and cap area with Type 1 gravel. Mobilization, scaffold, making good works that would be required to the brick walls that remain, wall reconstruction.

$600,000.00 Area of structure is outlined in Section 4.3.2 of the report. Assumes debris can be tipped at the Yarmouth landfill cell with no tipping charges.

3. Structural Framing/Decking Repairs & Removals of the Water Street Utility Service Structure

$425,000.00 Allowance

4. Building Wall Envelope Rehabilitations $3,500,000.00 Interior damages assumed can be attended to by YAIC own forces & any future tenants fit up would be covered under the terms of leasehold improvements.

5. Roofing Replacements, Metals & Rainware

$918,000.00 Interior damages assumed can be attended to by YAIC own forces.

6. Sub Total $5,448,000.00

7. Engineering & Contingency @ 20% $1,089,600.00 Detailed Designs, Tender Documents, Contract Administration & project contingency.

8. Total Budget Net Cost $6,537,600.00



Table 5-3: Option 3 – Reconstruction of All Building Structures and Principal Short Term

Building Envelope Capital Works

(Similar to Option 2 but includes for reconstruction of the rear elevation damaged building structures)


1. As Table 5-2 but with Item 2 increased by $500,000.00.

$5,948,000.00 As Table 5-2 with budget increase includes for the reconstruction of the damaged rear structures including roofing replacements, deck replacements, structural repairs, interior restoration and complete interior fit up.

2. Engineering & Contingency @ 20% $1,189,600.00 Detailed Designs, Tender Documents, Contract Administration & project contingency.

3. Total Budget Net Cost $7,137,600.00

6.0 Summary

This capital reserve fund study report has presented an overview of the reported and observed top

surface conditions at the principal building elements above a report threshold value of $15,000.00.

It is clear that the building envelope has had little major maintenance or major capital renewals

investment in recent years. As such, the aging and poor performance level of the envelope is starting

to have a negative impact at parts of the building interiors and some of the timber structural elements.

Significant capital expenditure is warranted in the immediate to short term to maintain the building to a

reasonable standard.

The major expenditure items in the short term include the rehabilitation of the building walls, structural

timber repairs, roofing replacements, and the rear elevation 3 storey damaged structure and adjacent

garage.

Taking into consideration the age of the building and original building wall envelope elements, we do

not consider that the scope of works required is unwarranted or should be construed as unexpected.

We have provided in Section 5.0 an options analysis for three potential work implementation scenarios

for the building facility.

We recommend that a workshop meeting take place with YAIC to discuss the contents of this study,

options presented, potential other options, and to agree on the appropriate way forward taking into

consideration any economic impacts and the real estate value of the Domtex facility.

A capital reserve fund study should be updated every 5 years and the focus of this study has been on

the first 5 year period in recognition that it is not practical or financially prudent to implement all the

required works in the short term horizon. Therefore, future inspections, testing, and reporting will assist

in developing the detailed plan for the subsequent 5 year period if it is decided to invest monies into the

facility.

7.0 Consultant Qualifications

Michael Williams, P Eng is the principal of BRK Engineering Inc. and a senior consultant with 31 years

of experience in the heavy civil, structural, building, municipal, and transportation engineering sectors.

He is a graduate of the University of Greenwich and has had the privilege of serving as a part time

lecturer at Dalhousie University to final year civil engineering students in building design and



construction with a focus on building envelopes, program and project management, asset management,

tendering procedures, and compilation of contract documents.

Michael is most actively involved in the performance review and analysis, restoration, rehabilitation, and

conservation of private and public sector buildings, and provides consulting engineering services to the

public, private, and non for profit sector clients in municipal, transportation, structural engineering,

energy, conservation of heritage structures, and building envelope practice sector service areas.

Michael’s career spans municipal government and private sector consulting in the United Kingdom and

Canada where he has played a prominent role on a variety of single and large multi-disciplinary civil

and building engineering projects as principal in charge, project manager/owner’s engineer, lead senior

engineer, and resident engineer under traditional and turnkey project delivery methods.

Michael has served a three term as a board member with the Consulting Engineers of Nova Scotia and

Joint Services Contract Committee responsible for the continuous improvement and updates to the

Standard Specification for Municipal Services in Nova Scotia.

8.0 Limiting Conditions

The purpose of this report is to provide a general indication of the present physical condition of the

principal building elements for the purposes of preparing a capital reserve fund study with respect to

easily visible portions of the structure; enclosure; mechanical, electrical, and plumbing systems; active

fire safety systems; passive fire safety systems (fire containment and egress provisions), and interior

finishes, furniture, and tenant equipment are specifically excluded from our mandate.

We were to record deficiencies or conditions noted during a visual walk-through review that in our

opinion will likely require capital expenditures by the client above those normally associated with routine

maintenance in the next 25 years. This is not a detailed building condition assessment in every aspect.

Our mandate was to complete a visual walk-through survey of items, components, and systems that are

conspicuous, patent, and that may be observed visually during the walk-through survey without

intrusion, removal of material, exploratory probing, and the use of special equipment or design

calculations. Therefore, concealed physical deficiencies and design inadequacies are specifically

excluded from our mandate.

Our interviews of personnel attempt to uncover known concerns at the property, but we cannot attest to

the integrity or knowledge of the interviewees, nor can this process, or the scope of work in its entirety,

be considered technically exhaustive or be considered to eliminate all risks. Only conditions actually

seen during examination of representative samples can be said to have been appraised, and comments

on the balance of the conditions are assumptions based upon extrapolation.

Our mandate does not include an exhaustive review of visible conditions against all code, property

standards bylaw, or other legislative requirements that existed at the time of construction, or that may

retroactively apply, including Human Rights Code violations.

Our mandate is to provide opinions of probable costs that reflect the repair strategies that we foresee

and should be considered preliminary budgets only. Accurate figures can only be obtained by

establishing a scope of work, detailed designs, and receiving quotes from suitable contractors. We

cannot guarantee the actual age of equipment, apparent maintenance practices, or the service lives

that we have predicted. Time frames given for undertaking work represent our opinion of when to

budget for the work. Failure of the item, or the optimum repair/ replacement process, may vary from our

estimate. There can be no assurance that this forward-looking information will prove to be totally



accurate, as actual results and future events could differ materially from those anticipated. Accordingly,

readers should not place undue reliance on forward-looking information.

Typically further investigation and design will be needed to firm up construction budgets and timing for

any significant projects. In selecting repair strategies, we try to select strategies to match the client's

business strategy for the building, when this is communicated to us. In many circumstances, more or

less conservative repair approaches could be selected. Our opinions of costs apply only to the

strategies described in our report. In this instance, we assumed that the ownership strategy is to

manage the property over the long term, balancing costs with a reasonably high level of service and

performance. Capital renewal programs have been timed to occur prior to degradation progressing to

the point of being overly evident, creating excessive disruption or causing unnecessary inconvenience.

Upgrades are included where mandated by codes or by-laws, and where recommended to provide

levels of performance considered acceptable by modern standards.

The Client expressly agrees that the individuals engaged by the Consultant shall have no personal

liability to the Client in respect of a claim, whether in contract, tort and/or any other cause of action in

law. Accordingly, the Client expressly agrees that it will bring no proceedings and take no action in any

court of law against any of the individuals in their personal capacity.

This report is, and shall remain the property of the Consultant. Copies issued to the Client are for record

purposes only. The Client shall not use or permit use thereof for any other project without the consent

of the Consultant.