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HomeMy WebLinkAboutOES 07-10 Ciro Report To Council PICKERING Report Number: OES 07-10 129 Date: March 29, 2010 From: Everett Buntsma Director, Operations & Emergency Services Subject: Tender No. T-24-2009 - Tender for Don Beer Arena Accessibility - Upgrades and Environmental Improvements - File: A-1440-001-10 Recommendation: 1. That Report OES 07-10 of the Director, Operations & Emergency Services regarding the Don Beer Arena Accessibility Upgrades and Environmental Improvements be received; 2. That Tender No. T-24-2009 submitted by Deciantis Construction Ltd. for the Don Beer Arena Accessibility Upgrades and Environmental Improvements in the amount of $2,411,850 (PST & GST included) be accepted; 3. That the total gross project cost of $2,838,675 and the net project cost of $2,703,500 including the tender amount and other associated costs be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to finance the project as follows: a) The sum of $320,000 as provided for in the 2009 approved Capital Budget to be financed by the issue of debentures through the Regional Municipality of, Durham, over a period not exceeding ten (10) years, at a rate to be determined; b) The sum of $1,680.,000 as provided for in the 2009 approved Capital Budget, to be funded through Provincial and Federal Recreation Infrastructure Canada (RInC) Program in Ontario Grant Funding; c) The sum of $100,000 as provided for in the 2009 approved Capital Budget to be funded from the Don Beer Arena Reserve; d) The sum of $420,000 as provided for in the 2009 approved Capital Budget to be funded from the Federal Gas Tax Reserve Fund; Report OES 07-10 March 29, 2010 Subject: Don Beer Arena Accessibility Upgrades and Environmental Improvements Page 2 130 e) The.additional sum of $183,500 to cover the project over expenditure will be funded as follows: i). the sum of $91,750 from Federal Gas Tax Reserve Funds; ii) the sum of $90,000 to be financed by the issue of debentures through the Regional Municipality of Durham over a period not exceeding ten (10) years; iii) the sum of $1,750 to be financed from current funds. f) The annual repayment charges in the amount of approximately $53,400 be included in the annual Current Budget for the City of Pickering commencing in 2010, continuing thereafter until the loan is repaid, and any financing cost to be paid out of the Current Budget; g) The Director, Corporate Services & Treasurer has updated the City's 2010 Annual Repayment Limit and certified that this loan and the repayment thereof falls within the City's Annual Repayment Limit for debt and financial obligations, as established by the Province for municipalities in Ontario and would not cause the City to exceed the updated Limit, and therefore, Ontario Municipal Board approval is not required prior to City Council's authorization; h) The Treasurer is authorized to take any actions necessary in order to effect the foregoing; and 5. That the appropriate officials at the City of Pickering be given authority to give effect thereto. Executive Summary: The Don Beer Arena Accessibility Upgrades and Environmental Improvements were approved by Council in the 2009 Capital Budget. Work on this contract includes renovations to the dressing rooms servicing Rinks 1 &,2, new fully accessible public washrooms, a new fully accessible front lobby and entrance, refurbishing of the upstairs banquet facilities including a fully accessible intensive green roof and elevators. The project also includes upgrades to the existing mechanical and electrical systems. Tenders have been received and the total net project cost to complete Don Beer Arena Accessibility Upgrades and Environmental Improvements is estimated to be $2,703,500. The tender prices as received have all come in marginally higher than originally anticipated during the budget process. The main reason for the higher pricing is the CORP0227-07/01 revised Report OES 07-10 March 29, 2010 Subject: Don Beer Arena Accessibility - Upgrades and Environmental Improvements Page 3 131 inclusion of a fire sprinkler suppression system from a health & safety perspective, which was not included in the original scope of work. However, 50% of the additional cost is eligible for funding under the Federal Gas Tax Program. Staff have confirmed that the low bidder Deciantis Construction Ltd. has satisfied the tender requirements and is qualified to undertake this project. Financial Implications: 1. TENDER AMOUNT T-24-2009 $2,292,000 GST 114,600 Sub-Total 2,406,600 Separate Price for Electrical Panel Board Replacement 5,000 GST 250 Grand Total 2,411,850 GST Rebate (114,850) Total $2,297,000 2. SOURCE OF FUNDS Operations & Emergency Services Department Capital Budget Location Project Code Source of Funds Budget Required T-24-2009. 5715.0903.1610 Federal Grants - RInC $840,000 $840,000 Don Beer 5715.0903.1623 Provincial Grants- RInC 840,000 840,000 Arena 5715.0903.7505 Federal Gas Tax RF 420,000 420,000 5715.0903.1703 Debt (10 year) 320,000 320,000 5715.0903.7033 Don Beer Arena R 100,000 100,000 Additional Funds Required 183.500 FUNDS AVAILABLE $2,520,000 $2,703,500 CORP0227-07/01 revised j Report OES 07-10 March 29, 2010 Subject: Don Beer Arena Accessibility - Upgrades and Environmental Improvements Page 4 132 Finance staff have provided input and taken into consideration the two exceptions affecting this project; the additional costs in the amount of $183,500 and the implication of new harmonized sales tax (HST). The additional costs identified are due to the inclusion of a fire sprinkler suppression system which was not included in the original scope of work. Based on the restriction on the RInC grant, we can only fund 50% of the total costs from Federal sources. This implies that only 50% ($91,750) of the additional costs will be funded from the Federal Gas Tax Fund. The remaining ($91,750) additional costs will be funded by an increase in debt financing. The revised amount to debt-finance will be $411,750. Effective July 1, 2010, the HST will come into effect. With the new HST, municipalities will be charged 13% on most goods and services and subject to a rebate of 11.24%, resulting in a net cost of 1.76% to the City. It is difficult to determine what percentage of the work will be done prior to July 1, 2010 or after July 1, 2010 or to isolate the built-in PST component in the tender cost. This makes it difficult to estimate. the net impact of this new HST implementation on the City in terms of increase or decrease costs. The current estimated costs are based on the existing rules as we are unable to estimate the implication of the new HST. Finance staff will revisit the financial implication of this project at the completion of the project. The overall net financial impact of the introduction of the HST to the City on all capital projects commencing in 2010 will be analyzed at the end of our 2010 fiscal year. 3. ESTIMATED PROJECT COSTING SUMMARY T-24-2009 Tender (including Electrical Panel Board Replacement) $2,297,000 Consultant and Testing Fees 151,500 Miscellaneous Tender Costs 5,000 Contingency 250,000 Total Project Costs 2,703,500 GST 135,175 Total Gross Project Cost 2,838,675 GST Rebate (135,175) Total Net Project Cost $2.703,500 Project Cost under (over) approved funds by ($183,500) The Director, Corporate Services & Treasurer has reviewed the budgeting implications and the financing of the expenditures contained in this report and concurs. CORP0227-07/01 revised Report OES 07-10 March 29, 2010 Subject: Don Beer Arena Accessibility 133 -Upgrades and Environmental Improvements Page 5 Sustainability Implications: The rehabilitation of the Don Beer Arena, and in particular the accessibility upgrades, will continue to encourage the development of active, healthy lifestyles throughout the community. The replacement of the existing mechanical plant will provide a more energy efficient heating and cooling system, thereby lowering energy costs and reducing greenhouse gas emissions. The intensive green, roof which is proposed over the new roof area will serve to add insulation, improve the carbon balance and assist in storm water management. The addition of an elevator to service the banquet hall will enhance the accessibility of this facility. Background: The Don Beer Arena Accessibility Upgrades and Environmental Improvements was approved by Council in the 2009 Capital Budget. The architectural firm of Jurecka+ Associates Architects Inc. was retained to provide the final design, prepare tender specifications and technical support during construction. . I Tenders have been received which closed on Wednesday, February 17, 2010 for this project. An advertisement was placed in the DCN and.on the City's website. A mandatory site visit was held on Wednesday, January 20, 2010 and twenty five (25) bidders attended of which thirteen (13) bidders responded and submitted a bid for this project. Five (5) addenda were issued during this tender call. The bidding summary is attached. The City's consultant, Jurecka + Associates Architects Inc., has undertaken the necessary reference checks related to the general contractor and the sub contractors and is recommending acceptance of the low bid, being Deciantis Construction Ltd. The tender prices as received have all come in marginally higher than originally anticipated during the budget process. The main reason for the higher pricing is the inclusion of a fire sprinkler suppression system from a health & safety perspective, which~was not included in the original scope of work. However, a portion of the additional cost is eligible for funding under the Federal Gas Tax program, thus the over expenditure will only marginally increase the required debt financing. The Health & Safety Policy, WSIB Clearance Certificate and Workplace Injury Summary Report issued by Workplace Safety & Insurance Board submitted by Deciantis Construction Limited has been deemed acceptable by the Coordinator, Health & Safety. CORP0227-07/01 revised Report OES 07-10 March 29, 2010. Subject: Don Beer Arena Accessibility Upgrades and Environmental Improvements Page 6 134 The Certificate of Insurance submitted by Deciantis Construction Limited has been deemed acceptable by the Manager, Taxation. In conjunction with staffs review of the contractor's previous work experience and the bonding available on this project, the tender is deemed acceptable. Upon careful examination of all tenders and relevant documents received, the Operations & Emergency Services Department, Operations & Facilities Division recommends the acceptance of Tender No. T-24-2009, the low bid, submitted by Deciantis Construction Ltd. in the amount of $2,411,850 (GST included) and that the total net project cost of $2,703,500 be approved. This report-has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Supply &Services Memorandum dated February 19, 2010 2. By-law to Authorize the Issuance of Debentures in the amount of $411,750. Prepared By: Approved/Endorsed B Tony Prevedel Everett Bunts a Division Head, Operations & Facilities Director, Operations & Emergency Services Gillis Paterson Director Corporate Services & Treasurer Vera A. Fe emacher C.P.P., CPPO, CPPB, C.P.M., CMM III Manager, Supply & Services TP:mld Copy: Chief Administrative Officer CORP0227-07/01 revised Report OES 07-10 March 29, 2010 Subject: Don Beer Arena Accessibility 135 -Upgrades and Environmental Improvements Page 7 Recommended for the consideration of Pickering City Council of a ri Th s J. Quinn, ~J MR, t-MM III Chief Administrative Officer CORP0227-07/01 revised ATTACHMENT#-J TO REPORT# 0 611/0 ~r of City o~ 136 PICKERING Memo To: Tony Prevedel February 19, 2010 Division Head, Operations & Facilities From: Vera A. Felgemacher Manager, Supply & Services Subject: Tender No. T-24-2009 Tender for Don Beer Arena Accessibility Upgrades and Environmental Improvements Closing Date: February 17, 2010 Tenders have been received for the above project. An advertisement was placed in the Daily Commercial News and on the City's website inviting companies to download the tendering documents and drawings for the above mentioned tender. Five (5) addenda were issued on this project. A mandatory site visit was held on Wednesday January 20, 2010 and twenty five (25) bidders attended of which thirteen (13) bidders responded and submitted a tender for this project. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. All deposits other than the low three bidders may be returned to the applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 10.03(w). Three (3) bids have been retained for review at this time. SUMMARY PST & GST included Bidder Total Tendered After Calculation Amount $ Check $ Deciantis Construction Ltd. $2,399,250.00 $2,406,600.00 MRP Builders - Engineers Inc. $2,671,217.00 $2,671,216.80 A Plus General Contractors Corp. $2,794,575.00 $2,794,575.00 Bemocon Contracting Ltd. $2,798,809.60 $2,799,334.65 Frank Pellegrino General Contracting Ltd. $2,804,445.00 $2,804,445.00 ATTACHMENT# TO REPORT#,67~I 13 7 ` of Snyder Construction $2,818,987.00 $2,818,987.50 OLAR Ltd. $2,853,232.00 $2,995,893.60 Ross Clair (R.O.M.) Contractors Inc. $2,908,500.00 $2,908,500.00 Automatic rejection - Bid Bond submitted not in the amount of 10% Gay Company Ltd. General Contractors of the tendered amount. Reference: Purchasing By-law No. 5900- 01, Procedure No. PUR 010-001, 10.04, Item 9(d), IB Item 16, 17, 18, and Tendering Specification Item 3 Automatic rejection - Addendum not acknowledged. Reference: Maram Building Corp. Purchasing By-law No. 5900-01, Procedure No. PUR 010-001, 10.04, Item 12, IB Item 3 (b),'16, 17, 18, 28; Addendum No. 5 Automatic rejection - Addendum not acknowledged. Reference: Samson Management and Solutions Ltd. Purchasing By-law No. 5900-01, Procedure No. PUR 010-001, 10.04, Item 12, IB Item 3 (b), 16, 17, 18, 28;.Addendum No. 5 John McLellan Contracting Inc Unable to Bid Venture Construction Services Ltd. Unable to Bid In accordance with Specifications Section 1600, the Electrical Supplementary Bid Form has been requested of the three (3) bidders - Decantias Construction Ltd., MRP Builders- Engineers Inc. and A-Plus Construction Corp. - to be submitted within 48 hours of tender closing. Pursuant to Information to Bidders Item 20, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. (a) Proof of compliance with amended Confined Space Entry Regulations (September 30, 2006). Copies of certified Training and Procedures to be used on this project. (b) a list of employees trained in the confined space entry procedure who will be working on this project (c), a copy of the Health and Safety Policy to be used on this project; (d) a copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (e) a copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (f) the City's certificate of insurance shall be completed by the bidder's agent, broker or insurer; (g) list of sub-contractors in accordance with GC Item 32, Form SCL-1 In addition, a request to acknowledge by signature the City's Accessibility Regulations. for Contracted Services and request to provide their Accessibility Training Policy if available. February 19, 2010 Tender No. T-24-2009 Page 2 Tender for Don Beer Arena Accessibility Upgrades and Environmental Improvements ATTACHMENT#~ TO REPORT# 7-10 _of 138 Include the following items in your Report to Council: (a) if items (a) through (e) noted above, are acceptable to the Co-ordinator, Health & Safety (b) any past work experience Deciantis Construction Ltd. including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work is to be charged; (e) the budget amount(s) assigned thereto; (f) Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of Deciantis Construction Ltd.is not acceptable; and (i) related comments specific to the project. Jurecka + Associates Architects Inc. as the consultants on this project will be reviewing submissions and, making recommendations to you. The consultant should also review carefully all submittal information based on tendering instructions. If the consultant notices any infractions or information missing during the evaluation, please contact a member of Supply & Services as soon as possible. Duplicate copies of the bids are attached for the consultant's use. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. Bidders will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services. VAF/jg Attachments February 19, 2010 Tender No. T-24-2009 Page 3 Tender for Don Beer Arena Accessibility Upgrades and Environmental Improvements 7 139 z N n. Q E i .J 0 x W m O E Q p >a~~ Co W w E rJ U ~ Z p. `4 C, O N. 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N E U Q C7 o o~--, o m m o o(j ° ° J o o a Q U ,L U 0 ~E U) (n cr- _ 2 m p J U 4TACHMENT# a TO REP0RT#QES 67 - / D or The Corporation of the City Of Pickering By-law No. Being a by-law to authorize the issuance of debentures in the amount of $410,000 for the Don Beer Arena Accessibility Upgrades and Environmental Improvements in the City of Pickering Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower-tier municipality in a regional municipality does not. have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City wishes construction to proceed in respect of the Don Beer Arena Accessibility' Upgrades and Environmental Improvements project; and, Whereas before authorizing the construction to proceed in respect of the Don Beer Arena Accessibility Upgrades and Environmental Improvements project on the date hereof the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated Limit and therefore, Ontario Municipal Board approval is not required as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And Whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved report OES 07-10 on the date hereof and awarded Tender T-24-2009 for the Don Beer Arena Accessibility Upgrades and Environmental Improvements project. I ATTACHMENT# ~ TOREPORT# Q 67-/ 0 TY4-i~w No. of Page 2 Now therefore the council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the project referred to as "Don Beer Arena Accessibility Upgrades and Environmental Improvements"; 2. That the estimated costs of the project in the amount of $2,703,500 be financed as follows: a) The sum of $410,000 be financed by the issue of debentures by the Regional Municipality of Durham over a period not exceeding ten (10) years; b) The sum of $1,680,000 be funded through 'Provincial and Federal Grant: Recreation Infrastructure Canada (RInC) Program in Ontario; c) The sum of $100,000 be funded from the Don Beer Arena Reserve; , d) The sum of $511,750 be funded from the Federal Gas Tax Reserve Fund; e) The balance sum of $1,750 be funded from Property Taxes; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2010 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 29th day of March, 2010. David Ryan, Mayor Debbie Shields, City Clerk