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Report to
Council
Report Number: CS 12-18
Date: May 14, 2018
From: Marisa Carpino
Director, Community Services
Subject: Tender for O'Brien Refrigeration Plant Rebuild at the Pickering Recreation Complex
- Tender No. T-18-2018
- File: A-1440
Recommendation:
1. That Tender No. T-18-2018 submitted by Black & McDonald Limited in the amount of
$658,677.00 (HST included) be accepted;
That the total gross project cost of $715,177.00 (HST included), including the amount of the
tender, contingency and other associated costs, and the total net project cost of
$644,039.00 (net of HST rebate), be approved;
3. That the Director, Finance & Treasurer be authorized to finance the net project cost of
$644,039.00 as follows:
a) the sum of $500,000.00, as provided for in the 2018 Rec. Complex - Arenas Capital
Budget by a transfer from the Federal Gas Tax Reserve Fund;
b) The additional sum of $144,039.00 to be funded by a transfer from Federal Gas Tax
Reserve Fund;
c) 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
4. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The O'Brien Arena addition at the Pickering Recreation Complex
opened in 1993 and is now 25 years old. A dedicated refrigeration plant serves this arena and is
approaching the end of its serviceable life. The existing refrigeration plant is to be removed and
replaced with a new, upgraded plant designed to increase energy efficiency and address
additional cooling loads associated with upward global temperature trends. The tender combines
the replacement of the refrigeration plant with the existing rooftop condenser for improved cost
efficiency. The bid price also includes a review of the existing roof structure.
Work must commence immediately following award to be completed within the summer shutdown
season and resume normal ice operations in September 2018. A provision has been included in
the scope of work, requiring that the contractor provide a temporary refrigeration plant at the site,
Report CS 12-18 May 14, 2018
Subject: Tender for O'Brien Refrigeration Plant Rebuild
at the Pickering Recreation Complex
should the system not be operational by this deadline. All costs associated with this temporary
plant are included in the bid price.
This project was originally tendered as T-10-2018, which closed on March 7, 2018. A single bid
was received with a price of $660,524.16 (excluding HST), exceeding available budget. Tender
No. T-10-2018 was cancelled, the scope of work was reduced and re -issued promptly as Tender
No. T-18-2018.
Tender No. T-18-2018 was released and made available for information to the public on the City's
website on April 9, 2018. An optional site visit was held on April 19, 2018. The tender closed on
May 2, 2018. Three companies submitted bids for this project.
The low bid submitted by Black & McDonald Limited in the amount of $658,677.00 (HST included)
is recommended for approval. The total gross project cost is estimated to be $715,177.00 (HST
included) and the total net project cost is estimated at $644,039.00 (net of HST rebate).
Financial Implications:
1. Tender Amount
Tender No. T-18-2018
HST (13%)
Total Gross Project Cost
$582,900.00
75,777.00
$658,677.00
2.
Estimated Project Costing Summary
Tender No. T-18-2018
Contingency
Total Cost
HST (13%)
Total Gross Project Costs
HST Rebate (11.24%)
Total Net Project Costs
$582,900.00
50,000.00
$632,900.00
82,277.00
$715,177.00
(71,138.00)
$644,039.00
3. Approved Source of Funds
2018 Capital Budget — Rec. Complex — Arenas
Account Code
5735.1801.6500
Source of Funds
Federal Gas Tax $500,000.00
Federal Gas Tax
Total Funds $500,000.00
Budget
Required
$500,000.00
144,039.00
$644,039.00
Report CS 12-18
Subject: Tender for O'Brien Refrigeration Plant Rebuild
at the Pickering Recreation Complex
May 14, 2018
Project Cost under (over) approved funds by ($144,039.00)
The additional cost will be funded from Federal Gas Tax Reserve Fund therefore no property tax
dollars will be required to fund the additional cost.
Contingency funds of approximately 7.5% of the construction cost have been included to address
unforeseen/concealed conditions or related deficiencies which may be encountered while
completing the work. The refrigeration system must meet all regulatory requirements prior to
operation. If the contingency is not required, the funds will be returned to source.
Discussion: The existing O'Brien Arena refrigeration plant at the Pickering Recreation
Complex was installed in 1993. It is now 25 years old and has reached the end of its serviceable
life. Several components, including the shell and tube heat exchanger, have severe corrosion and
cannot be returned to service for another ice season.
The existing rooftop condenser connected to this system is of the same vintage and is also at end
of life. Although it was budgeted for replacement in the 2017 capital budget (5735.1701.6500),
both projects were combined in the 2018 tender in order to realize cost savings. As a result of
this project, redundant equipment will be removed and replaced with new equipment strategically
located to reclaim much needed storage space.
The refrigeration plant must be operational by August 31, 2018 in order to produce ice in time for
the 2018-2019 ice season. The contractor will be required to provide a temporary refrigeration
plant, should the deadline not be met, to maintain operations until the work is completed.
Provision of the required connections for a temporary plant is included in the scope of work, and
will build in redundancy should one be required at any future date.
This project was originally tendered as Tender No. T-10-2018, which closed on March 7, 2018. A
single bid was received with a price of $660,524.16 (excluding HST), exceeding available budget.
Tender No. T-10-2018 was cancelled. The scope of work reduced and re -issued promptly as
Tender No. T-18-2018.
Tender No. T-18-2018 was released and made available for information to the public on the City's
website on April 9, 2018. An optional site visit was held on April 19, 2018. The tender closed on
May 2, 2018. Three companies submitted bids for this project.
Award to the low bidder, Black & McDonald Limited, will be conditional upon receiving the City's
Health & Safety form, Certificate of Insurance and Waste Management Plan and requisite
approvals. Previous work experience of Black & McDonald Limited and deemed it to be
acceptable.
Upon careful examination of all bids and relevant documents received, the Community Services
Department recommends the acceptance of Tender No. T-18-2018 submitted by Black &
McDonald Limited in the amount of $658,677.00 (HST included) and that the total net project cost
of $644,039.00 be approved.
Report CS 12-18 May 14, 2018
Subject: Tender for O'Brien Refrigeration Plant Rebuild
at the Pickering Recreation Complex
Attachments:
1. Supply & Services Memorandum dated May 2, 2018
Prepared By: Approved/Endorsed By:
L J 1
Vince PTauffe, OAA, RAIC
Manager, Facilities Capital Projects
toBrian Duffield �)
Division Head, Operations
II
Ray Rodriaes
Manager, Supply & Services
MC:vp
(
Marisa Carpino, MA
Director, Community Services
Stan Karwowski, CPA, CM 5 BA
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
Val 7 2018
cd re
DICKERING
ATTACHMENT #.J,_T+O REPORT #26.5/ 2 - !f
Memo
To: Marisa Carpino May 2, 2018
Director, Community Services
From: Justin MacDonald
Buyer, Supply & Services
Copy: Administrative Assistant, Community Services
Subject: Tender No. T-18-2018
Tender for O'Brien Arena Revised Refrigeration Plant Replacement
Closing: Wednesday, May 2, 2018 -- 2:00pm
File: F-5400-001
Tender No. T-18-2018 was advertised on the City's website on April 9, 2018. Three companies
have submitted a bid 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 13.03 (r) provides checking tendered unit prices
and extensions unit prices shall govern and extensions will be corrected accordingly, which has
been completed below.
The unsuccessful Bidder's tendering deposit, other than a bid bond, shall be returned to the
applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 13.03 (w).
Summary
Harmonized Sales Tax Included
Bidder
Total Tendered Amount
After Calculation Check
Black & McDonald
$ 658,677.00
$ 658,677.00
Berg Chilling Systems
$ 659,318.41
$ 659,318.41
Cimco Refrigeration
$ 734,048.00
$ 734,048.00
Pursuant to Information to Bidders Item 27 and Tendering Specifications Item 20, the following
documentation will be requested of Black & McDonald for your review during the evaluation
stage of this tender call. Please advise if Supply & Services is to proceed with collecting the
following documentation:
(a) A copy of the City's Health and Safety Policy form currently dated and signed;
(b) A copy of the current Clearance Certificate issued by Workplace Safety & Insurance
Board;
(c) The City's certificate of insurance or approved alternative form completed by the Bidder's
agent, broker or insurer; and
(d) Waste Management Plan.
A budget of $500,000 was provided fo Supply & Services for this procurement.
If the recommendation to award exceeds the budgeted amount, refer to Financial Control Policy
Item 11 for additional instructions.
In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out
below excludes HST.
As such, in accordance with Purchasing Policy Item 06.11, 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:
(c) Over $250,000, the Manager may approve the award, subject to the approval of the
Director, Treasurer, CAO and Council.
Please include the following items in your memo:
1. if Items (a) through (b) noted above are acceptable to the Co-ordinator, Health & Safety or
designate, if required;
2. if Item (c) is acceptable to the Manager, Budgets & Internal Audit;
3. if the list of subcontractors is acceptable to Community Services;
4. if Item (d) is acceptable to Community Services;
5. any past work experience with low bidder Community Services including work location;
6. without past work experience, if reference information is acceptable to Community
Services;
7. the appropriate account number(s) to which this work is to be charged;
8. the budget amount(s) assigned thereto;
9. Treasurer's confirmation of funding;
10. related departmental approvals; and
11. related comments specific to the project.
After receiving Council's approval, an approved "on-line" requisition will be required to proceed.
May 2, 2018
Tender No. T-18-2018
O'Brien Arena Revised Refrigeration Plant Replacement
Page 2
Enquiries can be directed to the City's website for the unofficial bid results as read out at the
public tender opening or to Supply & Services. 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.
JM
Attachments
May 2, 2018
Tender No. T-18-2018
O'Brien Arena Revised Refrigeration Plant Replacement
Page 3