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Home My WebLink AboutCR 13-15 City :: Report to ro Executive Committee I IMIZIKX Report Number: CR 13-15 Date: December 7, 2015 From: Marisa Carpino Director, Culture & Recreation Subject: Request for Proposal No. RFP-13-2015 - Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex - File: A-1440 . Recommendation: 1. That Proposal No. RFP-13-2015 submitted by Cimco Refrigeration in the amount of$1,549,311.36 (HST included) be accepted; 2. That the total gross project cost of$1,735,761.00 (HST included), including the amount of the proposal and other associated costs, and the tota l net project cost of$1,563,107.00 (net of HST rebate), be approved; 3. That Council authorize the Division Head, Finance & Treasurer to finance the net project cost of$1,563,107.00 as follows: a. The sum of$210,000.00 as provided for in the 2014 Capital Budget Recreation Complex Core — Domestic Hot Water Tank be increased to $256,200.00, to be funded by a transfer from the Federal Gas Tax Reserve Fund; b. The sum of$360,000.00 as provided for in the 2014 Capital Budget Recreation Complex Pool — Dehumidification Units be increased to $439,200.00, to be funded by a transfer from the Federal Gas Tax Reserve Fund; c. The sum of $60,000.00 as provided for in the 2014 Capital Budget Recreation Complex Pool —Axial High Speed Flow Fan, to be funded by a transfer from the Recreation Complex Pool Surcharge Fund; d. The sum of$200,000.00 as provided for in the 2015 Capital Budget Recreation Complex Core — Domestic Hot Water Heat Recovery Units be increased to $243,979.00, to be funded by a transfer from the Federal Gas Tax Reserve Fund; Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 2 e. The sum of$520,000.00 as provided for in the 2015 Capital Budget Recreation Complex Arenas — Refrigeration Integration Upgrade and Ice Controller System, to be funded by a transfer from the Rate Stabilization Reserve; f. The additional sum of$13,200.00 for the Recreation Complex Pool —Axial High Speed Flow Fan be funded from property taxes by re-directing funds from the 2015 Capital Budget Recreation Complex Core — Golf Simulator Project; g. The additional provision of$30,528.00 for contingency to be funded by a transfer from the Reserve for Sustainable Initiatives; and 5. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The Integrated Energy Project (IEP) is a consolidation of six separate capital projects planned for at the Pickering Recreation Complex and approved in the 2014 and 2015 Culture & Recreation Department Capital Budgets. These projects were originally planned as life cycle replacement of aging systems and equipment. However staff examined the age and condition of existing equipment, 9 9 analyzed their energy use, and identified an opportunity to merge these life cycle replacements with improved efficiency and energy recovery. The Integrated Energy Project (IEP) meets the City's Corporate Energy Management Plan's (CEMP) goals & objectives by effectively reducing energy consumption and reducing the City's carbon footprint. It also supports three of our five Corporate Priorities: Financial Management, Sustainable Placemaking and Corporate Best Practices. Consolidation of the six capital projects into a single Request for Proposal provides for economy of scale cost reductions, reduces the risks involved with multiple contractors performing work on the same or interrelated systems, reduces the City's health and safety liability, avoids exposure to extra cost claims, and eliminates repetitive overhead costs. Due to the Building Automation & Controls integration required between the various system components, the full scope of work must be undertaken at one time, as a single integrated project. Accordingly, Request for Proposal No. RFP-13-2015 was prepared and advertised on the City's website. Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 3 The highest ranking proponent, Cimco Refrigeration, in the amount of$1,549,311.36 (HST included) is recommended for approval. The total gross project cost is estimated to be $1,735,761.00 and the total net project cost is estimated at $1,563,107.00 (net of HST rebate). Financial Implications: 1. Proposal Amount Proposal No. RFP-13-2015 $ 1,371,072.00 HST (13%) 178,239.36 Total Gross Proposal Cost $ 1,549,311.36 2. Estimated Project Costing Summary Proposal No. RFP-13-2015 $ 1,371,072.00 Consulting Costs 55,000.00 Construction Administration 10,000.00 Contingency 100,000.00 Total Cost $ 1,536,072.00 HST (13%) 199,689.00 Total Gross Project Costs $ 1,735,761.00 HST Rebate (11.24%) (172,654.00) Total Net Project Costs $ 1,563,107.00 Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 4 3. Approved Source of Funds Recreation Complex Capital Budget— Central Core, Pool and Arenas Approved Code Description Source of Funds Budget Required 5731.1408.6181 Domestic Hot Water Tanks plus Federal Gas Tax $ 210,000.00 $ 256,200.00 heat exchangers replacement 5733.1401.6181 Replacement of Federal Gas Tax 360,000.00 439,200.00 Dehumidification Units 5733.1402.6173 Axial High Speed Flow Fan Rec. Complex Pool 60,000.00 60,000.00 Surcharge 5731.1507.6181 Domestic Hot Water Heat Federal Gas Tax 200,000.00 243,979.00 Recovery 5735.1502.6178 Refrigeration Integration Rate Stabilization 400,000.00 400,000.00 Upgrade Reserve 5735.1504.6178 Ice Controller System Rate Stabilization 120,000.00 120,000.00 Reserve Additional Funds Required 5733.1402.6173 Axial High Speed Flow Fan Property Taxes 0.00 13,200.00 Additional Provision - Reserve for 0.00 30,528.00 Contingency Sustainable Initiatives Total Funds $1,350,000.00 $1,563,107.00 Project Cost under (over) approved funds by $ (213,107.00) The total net project cost has exceeded the approved budget by 15% largely due to the weak Canadian dollar. In accordance with 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. This over- expenditure will be funded as follows: surplus Federal Gas Tax funds from the 2012 Roads Capital Budget—Whitevale Bridge Replacement project, property taxes from excess funds from the 2015 Recreation Complex Core Golf Simulator project, that will not be proceeding and from the Reserve for Sustainable Initiatives. The Reserve for Sustainable Initiatives was created in 2014 to capture any green rebates and revenues associated with the Claremont Solar Roof Rental Project, any incentives from Save On Energy Programs managed by Veridian relating to facilities, and any new incentives that the City can apply for. These funds will be directed by the City for use on any corporate green projects. Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 5 To date almost all funds received has come from incentives obtained from Save On Energy Program. There are sufficient funds to re-direct from this reserve towards additional provision for construction contingency. Discussion: The Green Act requires that municipalities not only report on energy consumption and GHG emissions, but that municipalities plan and demonstrate a commitment to energy and GHG reductions. Accordingly, City staff identified the opportunity to consolidate six separate capital budgets in both the 2014 and 2015 Culture & Recreation Department Capital Budgets into a single Integrated Energy Project (IEP). This IEP maximizes energy recovery and embraces the requirements as set out in the City's Corporate Energy Management Plan's (CEMP). The Pickering Recreation Complex is the largest consumer of energy of all City facilities. It consumes approximately 5 million kWh of electricity and 440,000m3 of natural gas annually. As such, this facility represents the single best candidate to reduce energy consumption for the Corporation of the City of Pickering through projects of this nature. IB Storey Inc. were retained by the City of Pickering to complete a study and recommend cost effective methods to incorporate these projects into one integrated project in order to maximize energy efficiencies and ensure eligibility to available incentive programs. IB Storey Inc. issued their Detailed Engineering Study for the Pickering Recreation Complex dated October 28, 2014, forming the technical evaluation upon which this project was based. Currently, waste heat from ice making and air conditioning equipment at the Pickering Recreation Complex is released into the atmosphere via exterior cooling towers. The cooling towers are aging and will require replacement in the near term, but can be removed from regular service if waste heat is used for water and air heating. Since the waste heat reduces the energy requirements to heat water, there is a net reduction in energy use and correspondingly a net reduction in energy costs. The primary chiller at the Pickering Recreation Complex is problematic and its potential failure during cooling months would result in the temporary closure of the facility. The integrated energy project builds in redundancies which would facilitate air cooling even with the complete failure of the chiller. This is an important benefit when considering the importance of the Pickering Recreation Centre as an official cooling centre during summer heat alerts. They key components of this Integrated Energy Project include: • Dehumidification Units (2 small units or one large unit) • DHW tanks (x2) plus heat exchangers Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 6 • Design and engineering to integrate arena refrigeration, air conditioning, heat recovery and domestic hot water • Delaney Arena, mechanical equipment. • Connect Air Conditioning to Refrigeration Plant • Waste Heat Recovery for water heating (pool, domestic hot water supply, and facility space heating) • York Chiller (Air Conditioning) which was installed in the Spring of 2015 Three of the IEP component projects above were approved as part of the 2014 Capital Budget. The remaining projects were approved as part of the 2015 Capital Budget. Installation of a new backup chiller was included in the Detailed Engineering Study, but completed separately in Spring of 2015. IB Storey Inc. were further retained by the City of Pickering to complete the engineering design and project management services for the implementation of the Integrated Energy Project that was subsequently released as a Request for Proposal No. RFP-13- 2015. A mandatory site visit was held on Tuesday, May 19, 2015 and 4 companies attended. Request for Proposal No. RFP-13-2015 for the Design-Build Services Integrated Heat Recovery and Refrigeration System Upgrade Project closed on Wednesday, June 2, 2015, with.two (2) proposals submitted. An evaluation committee, consisting of City staff and a representative of IB Storey Inc., evaluated the proposals using criteria outlined in the Terms of Reference. The highest ranking proponent was Cimco Refrigeration and is recommended by the evaluation committee. The highest scoring proponent, Cimco Refrigeration, has submitted a copy of the Health & Safety Policy, the current WSIB Workplace Injury Summary Report and Clearance 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 Coordinator, Human Resources. Their Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal Audit. The project engineers - IB Storey Inc. - have reviewed the proposal submitted by Cimco Refrigeration Ltd. and has deemed it acceptable. In conjunction with the foregoing approvals, staff have reviewed the previous work experience of Cimco Refrigeration, 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 the Proposal No. RFP-13- 2015 submitted by Cimco Refrigeration in the amount of$1,549,311.36 (HST included) and that the total net project cost of$1,563,.107.00 be approved. Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 6 • Design and engineering to integrate arena refrigeration, air conditioning, heat recovery and domestic hot water • Delaney Arena, mechanical equipment. • Connect Air Conditioning to Refrigeration Plant • Waste Heat Recovery for water heating (pool, domestic hot water supply, and facility space heating) • York Chiller (Air Conditioning) which was installed in the Spring of 2015 Three of the IEP component projects above were approved as part of the 2014 Capital Budget. The remaining projects were approved as part of the 2015 Capital Budget. Installation of a new backup chiller was included in the Detailed Engineering Study, but completed separately in,ring„2015. oP IB Storey Inc. were further retained by the City of Pickering to complete the engineering design and project management services for the implementation of the Integrated Energy Project that was subsequently released as a Request for Proposal No. RFP-13- 2015. A mandatory site visit was held on Tuesday, May 19, 2015 and 4 companies attended. Request for Proposal No. RFP-13-2015 for the Design-Build Services Integrated Heat Recovery and Refrigeration System Upgrade Project closed on Wednesday, June 2, 2015, with two (2) proposals submitted. An evaluation committee, consisting of City staff and a representative of IB Storey Inc., evaluated the proposals using criteria outlined in the Terms of Reference. The highest ranking proponent was Cimco Refrigeration and is recommended by the evaluation committee. The highest scoring proponent, Cimco Refrigeration, has submitted a copy of the Health & Safety Policy, the current WSIB Workplace Injury Summary Report and Clearance 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 Coordinator, Human Resources. Their Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal Audit. The project engineers - IB Storey Inc. - have reviewed the proposal submitted by Cimco Refrigeration Ltd. and has deemed it acceptable. In conjunction with the foregoing approvals, staff have reviewed the previous work experience of Cimco Refrigeration, 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 the Proposal No. RFP-13- 2015 submitted by Cimco Refrigeration in the amount of$1,549,311.36 (HST included) and that the total net project cost of$1,563,107.00 be approved. Report CR 13-15 December 7, 2015 Subject: Request for Proposal No. RFP-13-2015 Integrated Heat Recovery and Refrigeration System Upgrade Project at the Pickering Recreation Complex Page 7 Attachments: 1. Supply & Services Memorandum dated September 18, 2015. 2. Supply & Services Memorandum dated June 15, 2015. Prepared By: Approved/Endorsed By: Marcos Moreira Marisa Carpino Supervisor, Facilities Operations Director, Culture & Recreation a Brian J. Duffiel. Stan Karwowski Manag r, Facilities Operations Division Head, Finance & Treasurer Vera A. Fel macher C.P.P., CPPO, CPPB, C.P.M., CMM Ill Manager, Supply & Services Caryn Kong, CPA, CGA Senior Financial Analyst-Capital & Debt Management BD:mc Recommended for the consideration of Pickering ly Council "zajeea (q, '1°6 Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT# I TO REPORT# . -I 3 1s city 0 }��.�t_. . � ��. � Memo 001 , - ,1 0 _ To: Marisa Carpino September 18, 2015 Director, Culture & Recreation From: Vera A. Felgemacher Manager, Supply & Services Copy: Supervisor, Supply & Services Manager, Facilities Operations Supervisor, Facilities Operations Subject: Request for Proposal No. RFP-13-2015 Design-Build Services Integrated Heat Recovery and Refrigeration System • Upgrade Project - File: F-5300-001 Further to the memorandum dated June 15, 2015, following is an update of the evaluation process: On June 23, 2015 we received approval to invite Cimco, a Division of Toromont Industries, to enter into negotiations with the City. On June 26, 2015 a written invitation to enter into direct contract negotiations with the City was extended to Cimco. Information was received from Cimco in a timely manner and reviewed as requested by the City's consultant on this project, I.B. Storey Inc. Negotiated items and related pricing are attached for consideration. If you require further information, feel free to contact me or a member of Supply & ervices. RE''REATION DIV! ION VAF Lw�o * • fin attach ents &T“ ;. ;� P SERVICES HUMAN RESOURCES- E QPS CEN T RF - LEGAL -^ . CHERATIONS OFFICE SUSTAIN SUPERVIS"RS PLAN&DEV 111 ATTACHMENT# 2- TO REPORT# City CULTURE&RECREATION DIV SION -C RECEIVED FILE NO. NOINNANIK - ASEY Tr) y+---_ Memo MAYOR` �----�- UC.ATE C: _ ' OUNCIL - LtRK CUL& REr CORP SERVICES To: Marisa Carpino "IPE HUMAN RESOURCES June 15, 2015 Director, Culture & Recreation RAPE OPS CENTRE LEGAL FAC OPERATIONS OFFICE SUSTAIN C&R SUPERVISORS . PLAN&DEV From: Vera A. Felgemacher Manager, Supply & Services Copy: Supervisor, Supply & Services Manager, Facilities Operations Supervisor, Facilities Operations Subject: Request for Proposal No. RFP-13-2015 Design-Build Services Integrated Heat Recovery and Refrigeration System Upgrade Project - File: F-5300-001 Further to memorandum dated June 15, 2015, please be advised of the following: Reference: Item 3.4 Stage II — Evaluation of Rated Criteria. Stage II evaluation of rated criteria of the two proposals as outlined in Appendix E - RFP Particulars, Part D — Rating Criteria has been completed. Reference: Item 3.5 Stage III — Evaluation of Pricing. Evaluation of pricing has been completed. Reference: Item 3.6 Cumulative Score and Selection of Highest Scoring Proponent At the conclusion of Stage III, all scores from Stage II and Stage III will be added together and the highest ranking proponent will be selected for negotiations in accordance with Part 4—Terms and Conditions of the RFP process. This has been completed. The highest ranking proponent is Cimco Refrigeration, a Division of Toromont Industries Inc. Confirm if you wish us to proceed to negotiations with Cimco Refrigeration set out in the Terms of Reference, as follows: Reference: Item 4.3.1 Selection of Top-Ranked Proponent 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. Reference: Item 4.3.2 Timeframe for Negotiations The City intends to conclude negotiations within thirty (30) days commencing from the date the City invites the top-ranked proponent to enter negotiations. A proponent invited to enter into direct contract negotiations should, therefore, be prepared to provide requested information in a timely fashion and to conduct its negotiations expeditiously. ATTACHMENT# 10 REPORT# _ « — (S Reference: Item 4.3.3 Process Rules for Negotiations Any negotiations will be subject to the process rules contained in this Part 4—Terms and Conditions of RFP Process and the Submission Form (Appendix B) and will not constitute a legally binding offer to enter into a contract on the part of the City or the proponent. Negotiations may include requests by the City for supplementary information from the proponent to verify, cl.rify or supplement the information provided in its proposal or to confirm the conclusions re.•ched in the evaluation, and may include requests by the City for improved pricing from the pre s onent. VAF attachments Request for Proposal RFP-13-2015 Page 2 of 2 Design-Build Services Integrated Heat Recovery and Refrigeration System Upgrade Project