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PICKERING Report Number: CR 19-15
Date: October 26, 2015
From: Marisa Carpino
Director, Culture & Recreation
Subject: New Boiler System and Holding Tanks at Don Beer Arena
- Request for Proposal No. RFP-6-2015
- File: A-1440
Recommendation:
1. That Proposal No. RFP-6-2015 submitted by Climate Control in the amount of
$116,253.27(HST included) be accepted;
2. That the total gross project cost of$143,825.00 (HST included), including the
amount of the proposal and other associated costs, and the total net project cost
of$129,519.00 (net of HST rebate), be approved;
3. That Council authorize the Division Head, Finance & Treasurer to finance the net
project cost of$129,519.00 as follows:
a. The sum of$110,000 as provided for in the 2014 Don Beer Arena Capital
Budget to be financed from the Don Beer Arena Reserve;
b. The additional sum of$19,519.00 to be funded from property taxes; and
4. That the appropriate City of Pickering officials be authorized to take the
necessary action to give effect hereto.
Executive Summary: The domestic hot water heating system at Don Beer Arena
has reached the end of its useful life and no longer operates at peak efficiency.
Staff have determined that the most cost-efficient solution is to replace the existing
domestic hot water heating unit with a natural gas-fired condensing boiler system with
improved storage capacity. Installing current technology and higher efficiency systems
will result in lower annual building maintenance costs and lower utility costs.
Request for Proposal No. RFP-6-2015 was prepared and advertised on the City's
website. A mandatory site visit was held on Monday, May 4, 2015 and 4 respondents
attended, of which 3 respondents submitted a proposal for this project, which closed on
Tuesday, June 2, 2015. Climate Control submitted the highest scoring proposal at a
cost of$201,055.25 (HST included), which exceeded the available budget. The Terms
of Reference permitted the City to enter negotiations with the highest ranking
Report CR 19-15 October 26, 2015
Subject: New Boiler System and Holding Tanks at Don Beer Arena Page 2
proponent. A revised proposal dated September 14, 2015 in the amount of
$116,253.27 (HST included) was received by the City.
The highest scoring proponent, Climate Control, in the amount of$116,253.27 (HST
included) is recommended for approval. The total gross project cost is estimated to be
$143,825.00 and the total net project cost is estimated at $129,519.00 (net of HST
rebate).
Financial Implications:
1. Proposal Amount
Proposal No. RFP-6-2015 $102,879.00
HST (13%) 13,374.27
Total Gross Proposal Cost $116,253.27
2. Estimated Project Costing Summary
RFP-6-2015 $102,879.00
Consulting Costs 15,400.00
Contingency 9,000.00
Total Cost $127,279.00
HST (13%) 14,306.00
Total Gross Project Costs $143,825.00
HST Rebate (11.24%) (14,306.00)
Total Net Project Costs $129,519.00
3. Approved Source of Funds
2014 Capital Budget— Don Beer Arena
Approved Code Source of Funds Budget Required
5715.1402.6178 Don Beer Arena Reserve $110,000.00 $110,000.00
Additional Funding Required Property Taxes 0.00 19,519.00
Total Funds $110,000.00 $129,519.00
Project Cost under (over) approved funds by ($19,519.00)
The total net project cost has exceeded the 2014 approved budget by 17% due to
requests for proposal coming in higher than the budget amount. In accordance with
Report CR 19-15 October 26, 2015
Subject: New Boiler System and Holding Tanks at Don Beer Arena Page 3
Section 11 of the City's Financial Control Policy, Council approval is required for over-
expenditure exceeding 10% of the approved budget.
Council approval is being sought at this time for this over-expenditure, and this over-
expenditure will be funded from property taxes from excess funds from the 2015
Recreation Complex— Core Golf Simulator project that will not be proceeding. As per
Report FIN 08-15 Recommendation 19, "That the golf simulator capital budget project
(5731.1501.6178) in the amount of$67,500 be subject to an additional expenditure
approval by Council before the project proceeds and that the project be deemed
cancelled if there is no Council approved expenditure by the end of 2015."
Essentially, funds from property taxes are available to fund this over-expenditure
because the golf simulator project will not proceed in 2015. In early 2015, Pickering
Recreation Complex Racquetball members expressed an interest to work with staff in
an effort to increase racquetball court usage over the course of one year. The results
will be reviewed in Spring 2016 and staff will reassess their recommendation to convert
one of two racquetball courts into a golf simulator studio.
As per Report FIN 08-15 Recommendation 6, "That the Division Head, Finance &
Treasurer be authorized at his discretion to close any prior year's capital expenditure
accounts and to first apply any excess funding from property taxes to any over
expenditure in other accounts and to secondly transfer any remaining excess funding
back to the original sources of funds;". Therefore, the Treasurer will be applying the
excess funding from property taxes to cover over-expenditure in the New Boiler System
and Holding Tanks project.
Discussion:
The domestic hot water heating system at the Don Beer Arena has reached the end of
its useful life and no longer operates at peak efficiency. The existing tanks are failing
and annual maintenance has increased in order to maintain operations. The equipment
provides domestic hot water to the dressing rooms, washrooms and water for the ice
resurfacer to flood the rinks.
IB Storey Inc. were retained by the City of Pickering to design the most cost effective
and energy efficient replacement boiler & holding tank system at Don Beer Arena. IB
Storey Inc. issued design drawings, dated March 11, 2015, for staff to review and
approve. As recommended by IB Storey Inc., the most cost-efficient solution is to
replace the existing domestic hot water heating units with a natural gas-fired
condensing boiler system with improved storage capacity. Installing current technology
and higher efficiency systems will result in lower annual building maintenance costs,
lower utility costs.
The highest scoring proponent, Climate Control, has submitted a copy of the Health &
Safety Policy, the current WSIB Workplace Injury Summary Report and Clearance
Report CR 19-15 October 26, 2015
Subject: New Boiler System and Holding Tanks at Don Beer Arena Page 4
Certificate, confirmation of Ministry of Labour Health and Safety Awareness Training for
every worker and supervisor on this project, proof of compliance with amended
Confined Space Entry Regulations (September 30, 2006), along with copies of
certification and all are acceptable to the (Acting) Coordinator, Health & Safety.
Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal Audit.
The project engineers, IB Storey Inc., have reviewed the proposal submitted by Climate
Control and has deemed it acceptable. In conjunction with the foregoing approvals, staff
have reviewed the previous work experience of Climate Control, the references
provided and the bonding available on this project and the proposal is deemed
acceptable.
Upon careful examination of all proposals and relevant documents received, the Culture
& Recreation Department recommends the acceptance of proposal No. RFP-6-2015
submitted by Climate Control, the highest scoring proponent, in the amount of
$116,253.27 (HST included) and that the total net project cost of$129,519.00 be
approved.
Attachments:
1. Supply & Services Memorandum dated October 13, 2015.
Prepared By: Approved/Endorsed By:
9 , 1 )
Brian J. Du ield Marisa Carpino
Manager, Facilities Operations Director, Culture & Recreation
Vince Plouffe Stan Karwowski
Supervi.or, Facilities Operations Division Head, Finance & Treasurer
•
Vera A. Felgem. her
C.P.P., CPPO, PPB, C.P.M., CMM III
Manager, Supply & Services
1
Report CR 19-15 October 26, 2015
Subject: New Boiler System and Holding Tanks at Don Beer Arena Page 5
BD:mc
Recommended for the consideration •
of Pickering Cita ouncil
Tony Prevedel, P.Eng.
Chief Administrative Officer
•
• ATTACHMENT# i TO REPORT#C 6- 15
-. _
Nig MIN I Memo
IOC
To: Marisa Carpino October 13, 2015
Director, Culture & Recreation
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Manager, Facilities Operations
Supervisor, Facilities Operations
Supervisor, Supply & Services
Subject: RFP-6-2015
New Boiler System and Holding Tanks— Don Beer Arena
- File: F-5300-001
Further to the memo dated July 21, 2015, direction was received from Culture & Recreation to
enter into negotiations with the highest ranking proponent. Climate Control was the only
proponent exceeding the minimum point threshold and, therefore, given consideration to enter into
direct contract negotiations. The amount of the proposal was in the amount of$177,925.00 +
HST.
Terms of Reference Item 3.6: At the conclusion of Stage I I I, all scores from Stage I I and Stage III
will be added together and the highest ranked Proponent will be selected for negotiations in
accordance with Part 4 —Terms and Conditions of the RFP Process.
Terms of Reference Item 4.3.1: The top-ranked Proponent, as established under part 3
Evaluation of Proposals, will receive a written invitation to enter into direct contract negotiations
with the City.
A meeting to initiate negotiations with Climate Control was held on Wednesday, August 26,
2015. Climate Control submitted a revised proposal on Monday, September 14, 2015 in the
amount of$102,879.00 + HST.
In accordance with Appendix F — RFP Particulars, Part E — Other Mandatory Requirements,
the following documents were submitted with the proposal and were approved on May 22,
2015:
(a) the City's Health & Safety Policy Regulations form currently dated and signed;
(b) 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);
(c) Copies of Ontario Ministry of Labour, Health and Safety Awareness Training
certificates for every worker and supervisor who will be assigned to this project;
(d) a copy of the current Certificate of Clearance issued by Workplace Safety &
Insurance Board;
ATTACHMENT# I TO REPORT# GR i' -15
(e) valid certificate(s) of qualification (heating, refrigeration and air conditioning) issued
by the Ontario Training Adjustment Board for all personnel who will be working on
this project; and
(f) a certificate of insurance completed by the Company's agent, broker or insurer
Since that time, some documents have expired such as WSIB Clearance Certificate and
Certificate of Insurance, and will need to be requested from Climate Control before the project
commences.
Please advise if we are to proceed with this task.
In accordance with Purchasing Policy Item 06.12, where the compliant quotation or tender
meeting specifications and offering best value to the City is acceptable or where the highest-
scoring proposal is recommended and the estimated total purchase price is over $75,000 and up
to $125,000, the Manager may approve the award, subject to the approval of the Director,
Treasurer and CAO.
An approved on-line requisition will be required to proceed.
Please direct all enquiries to Supply& Services. Respondents will be advised of the outcome when
the ontract has been awarded.
If yo require further information, please contact me or a member of Supply& Services.
VAF/sb
Attachments L
RFP No. RFP-6-2015 Page 2 of 2
New Boiler System and Holding Tanks - Don
Beer Arena
ATTACHMENT _I REPO -I #CA) iq-1 S
— o. _
� = Memo
To: Marisa Carpino July 21, 2015
Director, Culture & Recreation
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Manager, Facilities Operations •
Supervisor, Facilities Operations
Supervisor, Supply & Services
Subject: RFP-6-2015
New Boiler System and Holding Tanks— Don Beer Arena
- File: F-5300-001
•
Further to the memo dated June 15, 2015, four (4) proposals proceeded to Stage II evaluation for
New Boiler System and Holding Tanks— Don Beer Arena.
Reference: Appendix F — RFP Particulars, Section G - Rated Criteria
The following is an overview of the categories for the rated criteria of the RFP. Proponents who
do not meet a minimum,threshold score for a category will,not proceed to Stage III of the
evaluation process.
Rated Criteria Category Weighting (Points)
Executive Summary 5 _
Company and Industry Experience 15
Relevant Experience _ 10
Work Plan and Methodology 35
Documentation and reporting 5
Technical Threshold of 70% Yes/No
Pricing 30
Total Points . 100
Technical Evaluation
The Proponent's submission should consist of the following criteria. The criteria listed in this
section will be evaluated. Proposals not meeting the technical threshold (70% score, less
pricing) will receive no further consideration during the evaluation process. The proposal shall
provide the following information:
•
a. Executive Summary= 5 points
Describe in a concise fashion, the Proponent's understanding of the required scope of work for
the project including the proposed equipment and responsibilities outlined herein. This section
must summarize the Proponent's plan to achieve delivery of the outlined services within the
ATTACHMENT C REPORT#C I9 —IS
required schedule. Confirmation that the Proponent's key personnel will be available for the
duration of the contract will also be required in this section. •
b. Company and Industry Experience = 15 points
Provide:
• A description of the Proponent's company (including a brief history) and services offered
• A short description of the ownership, organization, and management structure of the
firm. Include an organization chart of the branch that will provide services.
• Describe the experience the Proponent's company has in the recreation sector within
the context of recreational refrigeration specifically in the installation of boiler systems
and heat recovery
•
Provide:
• The capabilities, roles, and experience of all members of the team involved with this
project
• The name and contact information of the individual who would be the primary point of
contact for your firm during the tendering process; as well as the names of the proposed
Project Manager & Site Supervisor
• Resumes (maximum of two (2) 8 1/2" x 11" pages, one sided, each) for all members
clearly indicating their experience, educational qualifications, professional affiliations,
number of years with the firm, and outlining relevant experience (i.e. a summary of past
projects and installations)
c. Relevant Experience = 10 points
Provide descriptions for the following in a summary table format:
(a) three (3) boiler installations in the MASH (Municipal, Academic, Schools and Hospitals)
sector; and
(b) ammonia Heat Recovery systems
References may be requested to verify the listed projects. Preference will be given to
Proponents with projects meeting or exceeding the scope of work for this project. This must
include: .
• Equipment Upgrade Description
• Was the project completed within budget (i.e. for the original bid price)? If not, list
reasons why
• Description of any issues which arose and how they were mitigated
• Project duration (scheduled and actual) is to be provided
• Response times for any issues within warranty period
RFP No. RFP-6-2015 Page 2 of 5
New Boiler System and Holding Tanks— Don .
Beer Arena
ATTACHMENT# I TO REPORT# CR ,I (
d. Work Plan and Methodology = 35 points
Provide:
• A sample schedule for providing the scope of this project. Note that a detailed schedule
is required by the Company within 10 business days of contract award.
• Detailed Scope of Work outlining equipment schedules (list of equipment), materials,
and labour to be provided. This Scope of Work shall also detail the specific major tasks
including, but not limited to, pipe connections, demolition/removal of existing equipment,
new support modifications, ammonia recovery tie-ins, equipment installations, etc.
• Guarantees, Warranties, and Provisions of Contract
o Warranties to be described in detail
• Description of the firm's local branch or office service strength and capabilities. This
should demonstrate the Proponent's ability,to perform this work
• Response times for emergency calls -weekdays, weekends, and holidays
• Services not included must be listed
• Value added features and services, and proposed upgrades exceeding baseline
requirements
e. Documentation and Reporting = 5 points
Describe the method and documentation of standards of service and comfort for the services
the Proponent provides. All documentation and certificates stated in Appendix E, b eing current
and valid. All documents required throughout this RFP must all be submitted.
Provide copies of the following documents:
• Equipment Submittals for proposed boilers and heat recovery water heaters
• List of Proposed Operating Conditions: Pressures, and Temperatures for the system
• Sequence of Operations for Heat Recovery and Boiler Control
• Insurance, WSIB and health & safety documentation
f. Pricing—Total Points = 30 points
Proponent should review and complete the Rate Bid Form at Appendix C.
Pricing will be scored based on a relative pricing formula using the total amount as set out in
the Rate Bid Form (Appendix C).
Each Proponent will receive a percentage of the total possible points allocated to price for the -
particular category it has bid on by dividing that Proponent's price for that category into the
lowest bid price in that category. For example, if a Proponent bids $120.00 for a particular
category and that is the lowest bid price in that category, that Proponent receives 100% of the
possible points for that category (120/120 = 100%). A Proponent who bids $150.00 receives
•RFP No. RFP-6-2015 Page 3 of 5
New Boiler System and Holding Tanks— Don
Beer Arena
ATTACHMENT# I 10 REPORT#0R /c- I S
80% of the possible points for that category (120/150 = 80%), and a Proponent who bids
. $240.00 receives 50% of the possible points for that category (120/240 = 50%)
Lowest Total Price
X Total available points = Score with second-Second - Lowest
Total Price lowest total price
Lowest Total Price
X Total available points = Score with third- Third - Lowest
Total Price lowest price
And so on, for each proposal.
In the event of a tie score, the selected respondent will be determined in accordance with the
City's Purchasing Procedures.
•
A summary of the Stage II evaluation results for each unit is attached.
Three of the four proposals are eliminated for failing to meet the minimum threshold score of
49 out of 70 possible points.
Climate Control is the only respondent exceeding the minimum point threshold, and provides a
total cost for the project in the amount of$177,925.00 + HST.
A budget of$110,000 was provided to Supply& Services for this procurement
In accordance with Appendix.F — RFP Particulars, Part E — Other Mandatory Requirements,
the following documents were submitted with proposals and will be forwarded for evaluation
and approval:
(a) the City's Health & Safety Policy Regulations form currently dated and signed;
(b) 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);
(c) .Copies of Ontario Ministry of Labour, Health and Safety Awareness Training
certificates for every worker and supervisor who will be assigned to this project;
(d) a copy of the current Certificate of Clearance issued by Workplace Safety&
Insurance Board;
(e) valid certificate(s) of qualification (heating, refrigeration and air conditioning) issued
by the Ontario Training Adjustment Board for all personnel who will be working on
this project; and
(f) a certificate of insurance completed by the Company's agent, broker or insurer
RFP No. RFP-6-2015 Page 4 of 5.
New Boiler System and Holding Tanks— Don
Beer Arena
C� I�i
ATTACHMENT# I_ TO REPORT# — IS
The City's findings shall be used to serve the best interests of the Corporation of the City of
Pickering.
Please advise if we are to proceed with this task.
In accordance with Purchasing Policy Item 06.12, where the compliant quotation or tender
meeting specifications and offering best value to the City is acceptable or where the highest-
scoring proposal is recommended and the estimated total purchase price is over$125,000, the
Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and
Council.
Please include the following items in your Report to Council:
1. if Items (a), (b), (c) and (d) noted above are acceptable to the (Acting) Co-ordinator, Health
& Safety;
2. if Items (e) noted above are acceptable to the Manager, Facilities Operations
3. if the Certificate of Insurance is acceptable to the Manager, Budgets & Internal Audit;
4. any past work experience with Climate Control. including work location;
5. without past work experience, if reference information is acceptable;
6.. . the appropriate account number(s) to which this work is to be charged;
7.. the budget amount(s) assigned thereto;
8. Treasurer's confirmation of funding;
9. related departmental approvals; and
10. related comments specific to the project.
After Council approval, an approved "on-line" requisition will be required to proceed.
Please direct all enquiries to Supply& Services. Respondents will be advised of the outcome when
the contract has been awarded.
If you require further information, please contact me or a member of Supply& Services.
\ • t
VAF/sb a
Attachments 1 '/�
•
RFP No RFP-6-2015 Page 5 of 5
New Boiler System and Holding Tanks— Don
Beer Arena
•