HomeMy WebLinkAboutCS 33-18c/y,,
PJCKERI NG
Report to Council
Report Number: CS 33-18
Date: December 10, 2018
From: Marisa Carpino
Director, Community Services
Subject: Additional Costs for Tender T-18-2018
- O'Brien Refrigeration Plant Rebuild at the Pickering Recreation Complex
- File: A-1440
Recommendation:
1. That additional costs in the amount of $30,528.00 (net of HST rebate) over the original tender
amount for Tender No. T-18-2018 for the Rebuild of the O'Brien Refrigeration Plant at the
Pickering Recreation Complex resulting in a revised net project cost of $674,567.00 (net of
HST rebate) be approved;
2. That the Director, Finance & Treasurer be authorized to finance the additional net project cost
of $30,528.00 by a transfer from Federal Gas Tax Reserve Fund; and,
3. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: Tender No. T-18-2018 was awarded in May 2018 to replace existing
refrigeration equipment required for the operation of O'Brien Arena at the Pickering Recreation
Complex, as per council resolution #443/18. The existing Refrigeration Plant is at end of life and
complete replacement is required as reflected in the 2018 Capital Budget.
During the course of the work, it was discovered that the existing brine charge had become
contaminated with ammonia and had to be replaced. A temporary plant was installed in late
August 2018 to sustain ice operations while the primary plant was being replaced. Re -
pressurizing the system resulted in a partial failure of the brine header which had to be
immediately repaired to avoid loss of service and impact on arena revenues. Additional roof
reinforcement was also required to accommodate the extra weight of a new condenser included in
the tendered scope of work. The resulting costs exceeded the approved project budget of
$644,039.00 as per CS 12-18, by $4,655.61 (net of HST rebate).
The new plant is now operational and final deficiencies are being resolved. At this time, Council
approval is being sought for additional funds in the amount of $30,000.00 (plus HST) to cover the
outstanding costs for the work listed above in the amount of $4,655.61 and to provide minimal
additional contingency for the final portions of the work. Any unspent funds will be returned to
source.
Report CS 33-18
December 10, 2018
Subject: Additional Funds for Tender No.T-18-2018 for
O'Brien Refrigeration Plant Rebuild at the Pickering Recreation Complex
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
Additional Contingency
Total Cost
HST (13%)
Total Gross Project Costs
HST Rebate (11.24%)
Total Net Project Costs
$582,900.00
50, 000.00
30,000.00
$662,900.00
86,177.00
$749,077.00
(74,510.00)
$674,567.00
3. Approved Source of Funds
2018 Capital Budget — Rec. Complex — Arenas
Account Code
5735.1801.6500
Source of Funds
Federal Gas Tax
Additional Federal Gas
Tax Funds Required
Total Funds
Funds Approved
CS 12-18
Required
$644,039.00 $644,039.00
30,528.00
$644,039.00 $674,567.00
Project Cost under (over) approved funds by
($30,528.00)
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.
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.
Tender No.T-18-2018 was awarded in May 2018 and included provision of a temporary
refrigeration plant to sustain arena operations while the new plant was installed. A recently
Report CS 33-18 December 10, 2018
Subject: Additional Funds for Tender No.T-18-2018 for
O'Brien Refrigeration Plant Rebuild at the Pickering Recreation Complex
released report regarding the tragic deaths of three ice arena workers in Fernie, British Columbia,
prompted staff to verify the condition of the existing brine charge in the system prior to activating
the temporary plant. The brine was found to be contaminated with ammonia and the entire
volume had to be replaced due to potential health and safety concerns.
While pressurizing the system for activation of the temporary plant, Teaks developed at the north
end of the supply and return ends of the cold header and had to be repaired. The header is also
25 years old and at end of life, and had already been identified for replacement in 2022. It could
not be inspected in advance of tender as the header is covered with both insulation and a thick
layer of ice while the refrigeration plant is in use. Ten foot sections at the northernmost ends of
both the cold supply and return headers had to be replaced. Without these repairs, the rink could
not operate. Replacement of the balance of the header will be advanced for separate
replacement in 2019.
The resulting total costs of these unplanned extras exceeded the approved project budget
including contingency of CS 12-18, by $4,655.61 (net of HST rebate). The temporary refrigeration
has now been removed and the new O'Brien Arena Refrigeration Plant is now operational. All that
remains to be resolved are final inspections and minor deficiencies typical for the final stage of
any capital project. Therefore, at this time, Council approval is being sought for additional funds in
the amount of $30,000.00 (plus HST) to cover the outstanding costs for the work listed above in
the amount of $4,655.61 and to provide minimal additional contingency for the final portions of the
work. Any unspent funds will be returned to source.
The Community Services Department recommends that additional costs in the amount of
$30,528.00 (net of HST rebate) over the original tender amount for Tender No. T-18-2018 for
Rebuild of the O'Brien Refrigeration Plant at the Pickering Recreation Complex resulting in a
revised Tender amount of $674,567.00 (net HST rebate) be approved.
Report CS 33-18 December 10, 2018
Subject: Additional Funds for Tender No.T-18-2018 for
O'Brien Refrigeration Plant Rebuild at the Pickering Recreation Complex
Prepare• By Approved/Endorsed By:
Vince Plouffe, OAA, RA`TC Marisa Carpino, MA
Manager, Facilities Capital Projects Director, Community Services
Vivt—Brian Du ield Stan Karwowski, CPA, CMA, MBA
Division Head, Operations Director, Finance & Treasurer
Ray R+dri
Manager, S pply & Services
MC:vp
Recommended for the consideration
of Pickering City Council
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Tony Prevedel, P.Eng.
Chief Administrative Officer
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