HomeMy WebLinkAboutCS 48-12 City nO s Report to
Executive Committee
PICKERING Report Number: CS 48-12
Date: October 9, 2012
From: Everett Buntsma
Director, Community Services
Subject: Hiring of a Project Manager for the Design and Construction of the New
Operations Centre
- File: A-1440
Recommendation:
1. That Report CS 48-12 from the Director, Community Services be received;
2. That Council approve to engage the services of Independent Project Managers (IPM)
for project management services for the design and construction of the New
Operations Centre in accordance with the City's Purchasing Policy Item 10:05;
3. That the total gross project cost of$395,640.00 (HST included), and a net project
cost of$356,286.00 (net of HST rebate), including the proposed amount and
associated costs be approved;
4. That the (Acting) Division Head, Finance & Treasurer be authorized to finance the
project as follows:
a) the sum of$355,000.00 be debt financed, or through an internal loan, or from
the proceeds of the sale of City owned land;
b) the sum of$1,286.00 be funded from Development Charges Reserve Funds;
c) the (Acting) Division Head, Finance & Treasurer be authorized to make any
changes, adjustments, and revisions to amounts, terms and conditions, or take
any actions necessary in order to effect the foregoing; and
d) That the appropriate City of Pickering officials be authorized to take necessary
action to give effect thereto.
Executive Summary: The City has embarked on a process to design a new Operations
Centre as per Council direction on the 2012 Capital budget. City staff do not have the
expertise, resources or available time to properly manage a project of this magnitude. The
engagement of a project manager is recommended to ensure that this project is effectively
managed, and that the new facility is completed on time, and within budget.
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Report CS 48-12 October 9, 2012
Subject: Hiring of a Project Manager for the Design and Construction Page 2
of the New Operations Centre
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."
This report is to obtain Council approval to engage the service of Independent Project
Managers (IPM) as project managers for the new Operations Centre.
Financial Implications:
1. Project Management Services
Stage 1 Design $55,240.00
Stage 2 Contractor Selection 22,532.00
Stage 3 Construction 267,352.00
Total Project Management Cost $345,124.00
Miscellaneous Contingency 5,000.00
Total Cost $350,124.00
HST (13%) • 45,516.00
Total Gross Amount $395,640.00
HST Rebate (11.24%) (39,354.00)
Total Net Project Cost $356,286.00
2. Estimated Project Cost Summary
Project Management Services (IPM) $ 350,124.00
Architectural & Engineering Services RFP-1-2012 &Associated Costs 1,123,933.00
Total Project Cost $1,474,057.00
HST (13%) 191,627.00
Total Gross Project Cost $1,665,684.00
HST Rebate (11.24%) (165.684.00)
Total Net Project Cost $1,500,000.00
CORP0227-07/01 revised
74
Report CS 48-12 October 9, 2012
Subject: Hiring of a Project Manager for the Design and Construction Page 3
of the New Operations Centre
3. Source of Funds
Operations Centre Capital Budget 5315.1201.6181
Source of Budget Committed to Balance Total Funds
Funds RFP-1-2012 Required for Required
IPM
Debt-20 Year $1,475,000.00 $1,120,000.00 $355,000.00 $1,475,000.00
Property Taxes 0.00 839.72 0.00 839.72
Development 25,000.00 22,874.28 1,286.00 24,160.28
Charges
Reserve Fund
Total $1,500,000.00 $1,143,714.00 $356,286.00 $1,500,000.00
Net project costs under (over) approved funds 0.00
There are two components involved in this 2012 budget project for the Operations Centre:
the architectural and engineering services; and the project management services required
from the design through to the construction phase.
RFP-1-2012 pertaining to the architecture and engineering services was approved by the
CAO during Council summer recess (Attachment 1), and ratified by Council in Report CST
26-12 Tender/Contract Approval — Council's Summer Recess. This component was
approved for the amount of$1,143,714.00. This report is required in order to award the
second component of this project, being project management services. This component
will utilize the balance of the unspent funds in the amount of $356,286.00. The total cost
of the project as a whole is $1,500,000.00. Table 2 under Financial Implications provides
the estimated total project cost for the architectural and engineering services and project
management services combined. The total project cost is in line with the 2012 approved
budget.
This project was approved to be funded in the ratio of 98% debt financing and 2%
Development Charges Reserve Fund. Projects requiring debt financing or internal loans
have to be reported to Council in order to formalize the borrowing. This formal request was
undertaken by Report to Council CST 21-12 dated July 9, 2012, under Recommendation 2
c), and Debenture By-Law 7233/12 for the maximum debt amount of$1,475,000 based on
the 2012 approved Capital Budget.
The (Acting) Division Head, Finance & Treasurer has reviewed the financing of the
expenditures contained in this report and confirms that it is appropriate.
Discussion: Independent Project Managers (IPM) is located in Durham Region. The
City has used their services for the Don Beer Renovation and Accessibility Project, and
was very pleased with the performance, and end result. City staff believes that a project of
this magnitude ($21 M) requires the assistance of IPM to ensure proper oversight, cost
control, and assurance that timelines are adhered to through the process.
CORP0227-07/01 revised
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Report CS 48-12 October 9, 2012
Subject: Hiring of a Project Manager for the Design and Construction Page 4
of the New Operations Centre
The closure and decommissioning of the existing Operations Centre is imperative to
ensure timely construction of the Duffin Heights neighbourhood plan.
Without the assistance of IPM, City staff will be unable to ensure the appropriate controls
and timely oversight of this project. IPM have been engaged in project management for
local area municipalities for a number of years, having been involved with the Town of
Ajax new Operations Centre, and the Oshawa City Hall demolition and reconstruction, as
well as a number of CNR projects.
The Certificate of Clearance issued by the Workplace Safety & Insurance Board (WSIB),
the WSIB Cost and Frequency Record, and Health & Safety regulations acknowledgement
form as submitted by Independent Project Managers have been reviewed by the
Coordinator, Health & Safety and are deemed acceptable. The Certificate of Insurance
has been reviewed by the (Acting) Division Head, Finance & Treasurer and is deemed
acceptable.
The gross cost for project management services represents a fee of approximately 2% of
the overall project cost which is very competitive, and will result in a well managed project,
as well as ensuring that the project meets Council's expectations for cost and timing.
Therefore, it is requested that the firm of IPM be engaged for project management
services.
Attachment:
1. Memorandum dated July 26, 2012 for Proposal No. RFP-1-2012 Architectural &
Engineering Design Services
Prepared By: Prepared/Approved/Endorsed By:
I I
Caryn Kong, CGA Eve '-° B aa
Senior Financial Analyst— Capital & Director, Community Services
Debt Management
Stan Karwowski
(Acting) Division Head, Finance & Treasurer
CORP0227-07/01 revised
76
Report CS 48-12 October 9, 2012
Subject: Hiring of a Project Manager for the Design and Construction Page 5
of the New Operations Centre
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng. Li
Chief Administrative Officer
EB:Ir
CORP0227-07/01 revised
77
,71 ,CHMENT _...TO REPORTtt.a142r 1
Lay c
Memo
PICKER"
•
To: Tony Prevedel July 26, 2012
Chief Administrative Officer
From: Everett Buntsma
Director, Community Services
Copy: Director, Corporate Services & Treasurer
Division Head, Engineering Services
Manager, Operations & Fleet Services
Manager, Supply & Services
Senior Financial Analyst Capital & Debt Management
Subject: Proposal No. RFP-1-2012 Architectural& Engineering Design Services
New Operations Centre
Selection of Architect
- File: A-1440
Recommendation:
1. That this memo of the Director, Community Services, regarding the hiring of an
architectural firm for the design, site planning and tender document preparation for the new
Operations Centre be received;
2. That proposal No. RFP-1-2012 submitted by Rounthwaite Dick and Hadley Architects Inc.
(RDH) in the amount of$1,084,125.00 (plus HST) be accepted and a net proposal cost of
1,103,205.60 (net of HST rebate) be approved;
3. That the total gross project cost of$1,270,044.00 (HST included) and a net project cost of
$1,143,714.00 (net of HST rebate), including the proposed amount and other associated
costs be approved;
4. That the Director, Corporate Services & Treasurer finance the project as follows:
a) the sum of $1,120,000.00 be debt financed, or through an internal loan, or from the
proceeds of the sale of City owned land;
28 be funded from Development Charges Reserve Funds and;
b) the sum of$22,874. p
c) the balance of$839.72 be funded from property taxes;
78
d) the Treasurer be authorized to make any changes, adjustments, and revisions to
amounts, terms, conditions, or take any actions necessary in order to effect the
foregoing; and
5. That the appropriate City of Pickering officials be authorized to take necessary action to
give effect thereto.
Executive Summary: The existing Operations Centre is located on Tillings Road in the Duffin
Heights neighbourhood, and is in part, affecting the ability to construct and occupy a new
residential development. The need for relocation to a new site was identified in 2007, and a
Feasibility Study was undertaken in 2009. AECOM substantially completed the Feasibility Study
and Environmental Assessment in 2010/11, and it was determined that the only viable site was a
10.18ha (25.15 acre) parcel at 1955 Clements Road. Council approved the acquisition of this
parcel which was acquired in early 2012, and we now must move forward with the design and
construction to promote the development of the Duffin Heights plan.
Further, the existing Operations Centre has reached its useful life cycle as it is over 35 years old
and does not meet all of the requirements associated with current advanced technologies and
regulations for noise abatement, soil protection, winter control operations and methodology, and
energy management under regulation 397/11.
In accordance with Purchasing Policy Item 07.01, the Chief Administrative Officer is authorized to
act on behalf of Council during Council recess in approving an award of a project, and the
Treasurer is authorized to approve financing for same.
Financial Implications:
1. Request for Proposal Amount
Request for Proposal No. RFP-1-2012 — Rounthwaite Dick & Hadley $1,084,125.00
HST (13%) 140,936.25
Gross Estimated Amount $1,225,061.25
HST Rebate (11.24%) (121,855.65)
Net Cost $1,103,205.60
July 26, 2012 Page 2
Proposal No. RFP-1-2012 Architectural &
Engineering Design Services
New Operations Centre
Selection of Architect
79
2. Approved Source of Funds
Operations Centre — Municipal Garage Capital Budget
Project Code Source of Funds Budget Required
5315.1201.6181 Debt— 20 year $1,475,000.00 $1,120,000.00
5315.1201.6181 Property Taxes 0.00 839.72
5315.1201.6181 Development Charges Reserve 25,000.00 22,874.28
Fund
Total $1,500,000.00 $1,143,714.00
3. Estimated Project Cost Summary
Request for Proposal RFP-1-2012 $1,084,125.00
Miscellaneous Tender Costs 2,000.00
Contingency Architectural Services 32,808.00
Total $1,123,933.00
HST (13%) 146,111.00
Gross Project Cost 1,270,044.00
HST Rebate 11.24% (126,330.00)
( $1.143,714.
Net Project Cost 00.
Net Project Costs under (over) Approved Funds $356,286.00
It is necessary to report to Council on projects requiring debt financing or internal loans in order to
formalize the borrowing. RFP-1-2012 will be awarded in the summer after Council has recessed,
and as a result reporting to Council to include debt financing was not possible.
In order to formalize this debt before the Council recess, Recommendation 2 c) of Report to
Council CST 21-12 dated July 9, 2012 approved the maximum debt financing in the amount of
$1,475,000 based on the 2012 approved Capital Budget. The debt financing together with
$25,000 to be funded from the Development Charges Reserve Fund provides for a maximum
funding of$1 .5 million for this project which includes consulting and design of a new Operations
Centre.
RFP-1-2012 as reported in this memo pertains to the Architecture & Engineering Services for the
new Operations Centre. Based on the magnitude of this project, it will also require project
management services for managing through to completion. The balance of the unspent funds in
the amount of$356,286 will be retained for funding project management services. Council's
approval is required in order to proceed with the awarding of the project management services,
which will be the subject of a separate report to Council in September. This report will also
summarize the total project cost as a whole.
July 26, 2012 Page 3
Proposal No. RFP-1-2012 Architectural & .
Engineering Design Services
New Operations Centre .
Selection of Architect .
80
Discussion: Council approved the completion of an Environmental Assessment and Feasibility
Study for the new Operations Centre in 2009 in the amount of$100,000. Through 2009 and 2010
this process was conducted by AECOM as per Council approval through Report to Council OES
24-10. This was concluded in late 2010 and a preferred site was selected.
Through the approval of the 2011 budget, Council approved the acquisition of the site in the
amount of $8 million. Subsequently a Report to Council (CAO 15-11) was prepared and approved
by Council to acquire the lands at 1955 Clements Road. The City made an offer to purchase in
2011 , and subsequently conducted some due diligence investigation of the site before closing the
sale in early 2012.
After the site was acquired, an Expression of Interest (RFEI-1-2011) process was undertaken to
determine a short list of suitable Architectural and Engineering firms to undertake design, site
planning and prepare drawings and specifications for the tender and construction of the new
Operations Centre. Eight suitable Architectural and Engineering firms were short listed through
this process.
Request for Proposal No. RFP-1-2012 was released, inviting proposals from eight Architectural
and Engineering firms. The proposals were evaluated by a committee comprised of staff
Supply & Services, Community Services, including a representative from Independent Project
Managers (IPM) for an independent, experienced, objective, and professional opinion. •
Based on prescribed criteria, the proposals were evaluated and the three highest ranking
respondents were short listed and selected for interviews. At the conclusion of the interviews, a
cumulative score of their proposal and a score of their interview was completed. The proponent
with the highest ranking score was the firm of Rounthwaite, Dick and Hadley Architects Inc. (RDH)
who were selected for contract negotiations in accordance with the RFP Terms of Reference Item
3.7 (a), which resulted in a revised fee proposal of$1,084,125 plus HST. The evaluation
committee recommends that the firm of Rounthwaite Dick and Hadley Architects Inc., be
authorized to proceed with the design, site planning and tender document preparation of this
project in 201.2 and 2013 with construction planned to commence in 2013 after budget approval
for construction costs, estimated at $20 million.
This project will be before Council during the 2013 budget deliberations, and again at the
tendering award stage for commencement of construction.
Attachments:
1. Resolution 151/10 (OES 24-10)
2. Resolution 157/11 (CAO 15-11)
3. Memorandum from Supply & Services dated June 14, 2012
4. Memorandum from Supply & Services dated April 17, 2012
July 26, 2012 Page 4
Proposal No. RFP-1-2012 Architectural &
Engineering Design Services
New Operations Centre
Selection of Architect
81
Approved/Endorsed By:
' y
3
Everett Bunts ' NF 'CMM Rich ��
rd Holb• n
. , P. Eng.
Director, Community Services Divi ion Head, Engineering Services
r
Gillis A. Paterson - rant Smith ,
Director, Corporat Services & Treasurer Manager, Operations & Fleet Services
Vera A. Felgemacher, `' Caryn Kong CGA
C.P.P., CPPO, CPPB, C.P.M., CMM III Senior Financial Analyst
Manager, Supply & Services Capital & Debt Management
Approval
/7P,'„tiz,d( Azzz, . /. zei2,
Tony Prevedel, P.Eng.
Chief Administrative Officer
EB:Ir
July 26, 2012 Page 5
Proposal No. RFP-1-2012 Architectural &
Engineering Design Services
New Operations Centre
Selection of Architect
82