HomeMy WebLinkAboutCR 12-15 cat/co = Report to Council
u=rn'='. Report Number: CR 12-15
I KERIN Date: February 23, 2015
From: Marisa Carpino
Director, Culture & Recreation
Subject: Pickering Recreation Complex Integrated Energy Project
Consulting and Contract Administration Services
- File: A-1440
Recommendation:
1. That Report CR 12-15 of the Director, Culture & Recreation regarding the Pickering
Recreation Complex Integrated Energy Project Consulting and Contract
Administrative Services be received;
2. That Council approve to engage the services of I.B. Storey Inc. for the consulting and
contract administration services of the Pickering Recreation Complex Integrated
Energy Project in accordance with the City's Purchasing Policy Item 10:05;
3. That the total gross project cost of$67,800.00 (HST included), and a net project cost
of$61,056.00 (net of HST rebate), including the proposed amount and contingency
be approved;
4. That Council authorize the Division Head, Finance & Treasurer to finance the project
as provided for in the 2014 Recreation Complex— Core and Pool Capital Budgets in
the amount of$61,056.00 from the Federal Gas Tax Reserve Fund;
5. That the appropriate City of Pickering officials be authorized to take necessary action
to give effect thereto.
Executive Summary: Consistent with the principles of the City's Corporate Energy
Management Plan, staff seek out energy efficiencies within our operation particularly when
considering the replacement of aging equipment. As such, a detailed engineering study
was completed by I.B. Storey Inc. in 2014 to analyze the condition of existing equipment
and energy consumption at the Pickering Recreation Complex and to identify cost-
effective opportunities for improved efficiencies.
This study identified energy cost saving opportunities surrounding the replacement of
aging mechanical systems in the Recreation Complex core, pool and arena operations by
improving equipment efficiency and recovery of waste heat by integrating systems that
currently operate independently. For this reason, various capital projects have been
identified in the 2014 and 2015 capital budgets, and will be combined into a single
Integrated Energy Project at the Pickering Recreation Complex. This approach will
produce cost savings through economy of scale and consolidated work as part of a single
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Report CR 12-15 February 23, 2015
Subject: Pickering Recreation Complex Integrated Energy Project Page 2
contract, avoiding the inherent risks of coordinating multiple, complex scopes of work by
different parties on the same systems at the same time, and minimizing potential
disruptions to programs and services offered at the Recreation Complex.
At this time, the engagement of an engineering consultant is required to complete
technical documents detailing the scope of work for procurement, and to facilitate supply
and installation of equipment on site in order to achieve the specified system performance
upgrades of the Pickering Recreation Complex Integrated Energy Project. By completing
the original systems analysis and details, I.B. Storey Inc. are uniquely positioned to
complete these technical documents in a fraction of the time and cost compared to other
engineering firms.
The City's Purchasing Policy Item 10.04 states "Where the project or annual cost of a
consulting or professional service assignment is expected to be more than $30,000 the
Manager shall obtain written proposals in accordance with procedures set out in Section
06".
However, the City's Purchasing Policy Item 10.05 states "Where the project or annual cost
of a consulting or professional service assignment is expected to be more than $30,000
and the initiating Director intends to acquire the services without obtaining written
proposals, the Director shall submit a report to Council to obtain approval to engage the
services of a particular consultant."
The proposal of I.B. Storey Inc. is more than $30,000 and intent to acquire the services
without obtaining written proposals requires Council approval. This report is to obtain
Council approval to engage the service of I.B. Storey Inc. to provide consulting and
contract administration services for implementation of the Integrated Energy Project at the
Pickering Recreation Complex.
The technical design work needs to start now in order for the purchasing cycle and
awarding of tender to be completed before the summer maintenance period. This will
allow all of the critical work to be completed during the summer maintenance period
without affecting Fall program use.
Financial Implications:
1. Consulting Services
Consulting & Contract Administration (I.B. Storey Inc.) $50,000.00
HST (13%) 6,500.00
Total Gross Amount $56,500.00
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Report CR 12-15. February 23, 2015
Subject:. Pickering Recreation Complex Integrated Energy Project Page 3
2. Estimated Project Cost Summary
Consulting & Contract Administration (I.B. Storey Inc.) $50,000.00
Miscellaneous Contingency 10,000.00
Total Cost $60,000.00
HST (13%) 7,800.00
Total Gross Amount $67,800.00
HST Rebate (11.24%) (6,744.00)
Total Net Project Cost $61,056.00
3. Approved Source of Funds — Dehumidification Upgrade & Domestic Hot
Water Tanks
Source of Funds Budget Required
5731.1408.6181 Federal Gas Tax $210,000.00 $30,528.00
5733.1401.6181 Federal Gas Tax 360,000.00 30,528.00
Total Funds . $570,000.00 $61,056.00
Net project costs under (over) approved funds $508,944.00
There are two components involved in the consulting services required for completion of
the Integrated Energy Project: engineering services to complete drawings and
specifications sufficient for the issue of a request for proposal from general or mechanical
contractors; and contract administration services required to monitor compliance of goods
and work supplied and installed by the contractor, including certification of payments.
The requested funding is for both components of the work and will be divided equally
between two projects (noted above) to be funded from the Federal Gas Tax Reserve
Fund.
For reference, the following table shows the individual projects and funding sources
required to undertake the Integrated Energy Project.
Approved 2014 Capital Budget:
Account Description Amount
5731.1408.6181 Domestic Hot Water Tanks & Heat Exchanger $210,000
Replacement
5733.1401.6181 Dehumidification Upgrade $360,000
5733.1402.6173 Axial High Speed Fan Replacement $60,000
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Report CR 12-15 February 23, 2015
Subject: Pickering Recreation Complex Integrated Energy Project Page 4
Proposed 2015 Capital Budget (Pending Council Approval):
Account Description Amount
5731.1507.6181 Domestic Hot Water Heat Recovery $200,000
5735.1502.6178 Refrigeration Integration Upgrades $400,000 —
5735.1504.6178 Ice Controller System $120,000
A separate report will be submitted for Council approval of the supply and installation of
required equipment upon receipt and evaluation of proposals from contractors and in
accordance with the City's Purchasing Policy.
The Detailed Engineering Report completed by I.B. Storey identified there is a possibility
that the City may receive $45,000.00 for implementing the IEP and these dollars will be
applied to future energy efficient projects. The various major system components to be
replaced as part of this work are already at or nearing end of life. Those system elements
providing the greatest energy savings have a payback of 6 years. Including other
equipment in need of life cycle replacement, the overall Integrated Energy Project has an
estimated simple payback of 12 years.
The Division Head, Finance &Treasurer has reviewed the financing of the expenditures
contained in this report and confirms that it is appropriate.
Discussion: In 2014, the City retained I.B. Storey Inc. to provide a detailed
engineering study of existing mechanical equipment at the Pickering Recreation Complex,
including comprehensive evaluation of the age, operating and maintenance costs of major
building systems and identifies opportunities to consolidate life cycle equipment
replacement and upgrades to produce future energy savings with payback periods
sufficient to validate the required capital investments.
Implementation of the recommended upgrades is scheduled to proceed in 2015,
combining six previously independent scopes of work. This Integrated Energy Project
includes:
• replacement of three compressors in the Delaney arena refrigeration plant
• replacement of the Delaney arena ice controller system
• replacement of boilers, water tanks
• replacement of two large dehumidification units serving the pool area
• provision of heat exchangers to recover waste heat from the refrigeration plant for
use in pre-heating domestic.water and pool water.
• reduced demand on equipment by sharing loads, resulting in less wear and
extended service life
Managing long lead time for ordering and delivery of new equipment is key for completion
of the project without impacting programming and facility operations. Several of the
affected systems can only be modified during fixed shut-down periods in parts of the
Recreation Complex, such as replacement of the refrigeration plant compressors for
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Report CR 12-15 February 23, 2015
Subject: Pickering Recreation Complex Integrated Energy Project Page 5
Delaney Arena. Many of the larger pieces of equipment to be replaced have long lead
times for delivery, some of which could exceed 3 to 4 months.
The detailed engineering study provided by I.B. Storey Inc. in 2014 includes preliminary
design drawings and specifications for the recommended upgrades. Because of familiarity
developed during completion of the study, I.B. Storey are uniquely positioned to complete
these technical documents in a fraction of the time and cost compared to other
engineering firms. A separate procurement process for consulting services would delay
finalization of tender documents, require duplication of work already completed by I.B.
Storey, and result in delays impacting the overall project schedule.
The cost for the proposed consulting services represents a fee of approximately 4.5% of
the overall cost of the Integrated Energy Project, which is very competitive and will result
in a well managed project. Therefore, it is requested that the firm of I.B. Storey Inc. be
engaged to provide engineering consulting and contract administrative services to
facilitate implementation of the Integrated Energy Project.
Attachment:
1. Proposal for Project Facilitation (Version 2.0), The Pickering Recreation Complex,
January 21, 2015, I.B. Storey Inc.
Prepared By: Approved/Endorsed By:
(i.) 4
r _
Brian I 1-Id Marisa arpino
Manager, Facilities Operations Director, Culture & Recreation
Stan Karwowski
Division Head, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
6-gtioda r 45, 206
Tony Prevedel, P.Eng.
Chief Administrative Officer.
MC:vp
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„4„..,,AcHEN.,,, L,FO REPORT# C-r— 12-—IS
PROPOSAL
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Prof ess ional Thew Solutions
PROPOSAL FOR PROJECT FACILITATION
PICKERING RECREATION COMPLEX
CITY OF PICKERING, ONTARIO
JANUARY 21, 2015
Version 2.0
_ : I
Prepared by:
I.B. Storey Inc.
, . Ontario Office:
400 Applewood Cres., Suite 100
= Vaughn, ON L4K 0C3
Phone: 416-800-1482
Fax: 647-438-5707
Email: info(&,ibstorey.ca
. ,
CONFIDENTIAL&PROPRIETARY
CITY OF PICKERING _
PROPOSAL FOR PROJECT FACILITATION I n. O Ern
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SOLUTION OVERVIEW
This proposal is in response to a request by the City of Pickering for Project Facilitation services. This
service offering is in reference to the scope of work pertaining to the upgrades for the Pickering
Recreation Complex. These upgrades will include the following scopes of work as presented in I.B.
Storey Inc.'s Detailed Engineering Study:
Item 1: Refrigeration Integrated Upgrades
Item 2:Dectron(Pool Dehumidifier Upgrades)
Item 3: Domestic Hot Water Heat Recovery
Item 4:Water Tanks and Boiler Upgrades
Please note that I.B Storey Inc. will prepare specifications and utilize within a Design Build RFP
Framework-in accordance with CCDC-14 2013.
PROJECT FACILITATION
The engineering and project facilitation services offered by I.B. Storey Inc. highlight innovative and
practical analysis as well as advice. This will result in operational and equipment improvements. This
value added approach is essential to successful and efficient project performance. I.B. Storey Inc. is
familiar with the needs and priorities of the Pickering Recreation Complex and is keenly interested in
working with the City of Pickering on the implementation of this project.The City of Pickering is eligible
to receive funding for this project through the Ontario Power Authority (OPA). The project will
encompass energy efficiency measures, as well as other infrastructure improvements areas that will
have additional benefits.
The need to manage through project challenges highlights the importance of integrated results. I.B.
Storey Inc. understands that the integration of energy upgrades within an existing facility are necessary,
therefore the services proposed will ensure maximum efficiency throughout the project.
The project facilitation will be managed by a team of professionals with extensive and comprehensive
energy experience. I.B.Storey Inc. has provided advice to all levels of government and a wide variety of
clients on the development,design, program materials and implementation of energy management and
efficiency projects. This will result in a high quality end result, expert advice, on time, to support the
Client's objectives and funding program timelines.
1.8.Storey Inc. CONFIDENTIAL&PROPRIETARY PAGE 1
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CITY OF PICKERING
PROPOSAL FOR PROJECT FACILITATION Prof missal Oarli Me=
Summary of Scope of Work Items'
• Preparation of Technical Specifications
• Attend and provide technical support and expertise at the pre-submission meeting
• Creation of Tender/RFP Documents and associated schematics as required
• Respond to technical questions during the Tender/RFP process
• Revise technical requirements/specifications for any required addenda
• Evaluation of Proposals and submissions
• Negotiation of contract with successful Contractor to meet budget requirements and scope as
presented in the Detailed Engineering Study
• Coordination of awarded contractors activities, conduct regular site work inspections and lead
site meetings •
• Review and approval of invoicing/written recommendation for payment(payment processing)
• Evaluation and issuance of change orders as required
• Creation and maintenance of project schedule with a Gantt Chart
• Creation and Maintenance of an Open Items Register of all outstanding project issues with
project timelines for corrective action
• Fully coordinate inspections,deficiency lists and corrective measures with project team
• Ensure completion of all deficiencies
• Coordinate the documentation of warranties and guarantees
Detailed Commissioning Requirements included,but not limited to:
o Flow Rates, Operating Conditions and Power Measurements will be a Contractor
Requirement included in Tender Documents'
STATEMENT OF QUALIFICATIONS
I.B. Storey Inc. is a premier energy management firm that specializes in facilitating independent
decision-making information for our recreational, industrial and commercial clients. Our standard
service offerings include three grades of assessment ranging from investigative to investment. Our
boutique service offerings include: energy management and planning strategies; engineering upgrades
and system redesign; specialty engineering and lifecycle services, and; monitoring and performance
verification engineering. I.B. Storey Inc. has experience working with clients across North America with
annual utility expenditures ranging from $30,000 to $10 million. Founded in 2001, I. B. Storey Inc. has
cultivated a specialization in refrigeration systems for the arena industry.
'Incentive Application Support is not provided as part of this scope
2 I.B.Storey Inc.will provide further commissioning analysis only as needed to ensure compliance with the intent of
the contract documents
I.B.Storey Inc. CONFIDENTIAL&PROPRIETARY PAGE 2
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CITY OF PICKERING `
PROPOSAL FOR PROJECT FACILITATION S, ORB
lhMessIUY Mfg MUMS
AFFILIATIONS
It is important to note that I.B. Storey Inc. is an independent energy management firm.While I.B.Storey
Inc. maintains positive working relationships with various suppliers and contracting firms, I.B.Storey Inc.
has no financial interest in the selection of any particular product or service from any organization. It is
this independence that allows for resolute and impartial advice for our clients.
QUALIFICATIONS •
• Certificate of Authorization&Licensing—Professional Engineers Ontario(also Licensing held in
6 other provinces in Canada)
• Ontario Recreational Facility Association (ORFA) Advanced Recreation Facility Energy
Management Instructor—Ian B.Storey,P.Eng.
• Member,International Institute of Ammonia Refrigeration(IIAR)
• Member,American Society of Heating,Refrigerating and Air-Conditioning Engineers
(ASHRAE) .
COMMENCEMENT COSTS C OMMENCEMENT
COSTS
I.B.Storey Inc.is available to commence immediately upon award.
I.B. •
•
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•
CITY OF PICKERING S
O R EY
PROPOSAL FOR PROJECT FACILITATION
?Messina'Faer01 UM=
PRICING SUMMARY
This comprehensive approach will provide consistency throughout the entire project and will provide
•
the City of Pickering with an independent advocate throughout the process.
DETAILED ENGINEERING PRICING MATRIX;
PLEASE Price
SELECT
Q PROJECT FACILITATION $50,000
TOTAL PACKAGE PRICE $50,0004
ACCEPTANCE:
POSITION/TITLE:
PURCHASE ORDER#:
Please return this signed sheet to I.B.Storey via fax at 647-438-5707.
3 All Prices in CAD.Taxes extra.
4 Based on discussions with the City of Pickering,I.B.Storey Inc.will release all invoices before June 30,2015;due
upon receipt.
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