HomeMy WebLinkAboutFIR 01-21Report to Council
Report Number: FIR 01-21
Date: March 22, 2021
From: John Hagg
Fire Chief
Subject: Tender for the Construction of a New Fire Station Headquarters at Brock Road and
Zents Drive
-Tender No. T2020-3
-File: A-1440-001-21
Recommendation:
1.That Tender No. T2020-3 submitted by Percon Construction Inc., in the amount of
$9,260,350.00 (HST included), be accepted;
2.That the total gross project cost of $9,972,250.00 (HST included), including the amount of the
tender, and other associated costs, and the total net project cost of $8,980,320.00 (net of
HST rebate), be approved;
3.That the Director, Finance & Treasurer be authorized to finance the total net project cost of
$8,980,320.00 as follows:
a)the sum of $2,765,000.00, be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed 20 years;
b)the sum of $6,213,000.00 be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed 20 years to address the funding
shortfall of the Development Charges-Protection Services Reserve Fund, and this amount
be repaid from future development charge collections;
c)the sum of $2,320.00 be funded from property taxes;
d)the annual repayment charges in the amount of approximately $194,550.00 be included in
the annual Current Budget for the City of Pickering commencing 202 1, or such
subsequent year in which the debentures are issued, and continuing thereafter until the
debenture financing is repaid;
e)the annual repayment charges in the amount of approximately $437,155.00 be included in
the annual Current Budget for the City of Pickering commencing 202 1, or such
subsequent year in which the debentures are issued, and continuing thereafter until the
debenture financing is repaid from future development charge collections as the first
source of repayment, and the cost of the annual repayment charges be included in the
next Development Charges Background Study;
f)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;
FIR 01-21 March 22, 2021
Subject: Construction of New Fire Station and Headquarters on Zents Drive Page 2
4.That the draft debenture by-laws attached to this report be enacted; and,
5.That the appropriate City of Pickering officials be authorized to take the necessary action to
give effect hereto.
Executive Summary: Tender T2020-3 was advertised on the City’s website on Wednesday,
December 23, 2020 for the construction of a new Fire Station and Headquarters facility to be
located at the northwest corner of Brock Road and Zents Drive. The new facility is approximately
1,950 square meters (20,000 square feet) in size, including three tandem pull through bays,
complete fire station amenities on the ground floor and separate facilities for Administrative,
Training and Fire Prevention staff on the second level.
Five bidders were pre-qualified to submit bids for the project, through RFPQ-8-2019. Only bids from
these bidders could be accepted. An optional site meeting was held on Tuesday, January 5, 2021.
The site itself is an open field and was readily available for access to all bidders throughout the
tender process. Three compliant bids were submitted for this project.
The low bid submitted by Percon Construction Inc., in the amount of $9,260,350.00 (HST included),
is recommended for approval. The total gross project cost is estimated to be $9,972,250.00 (HST
included) and the total net project cost is estimated at $8,980,320.00 (net of HST rebate).
Financial Implications:
1.Tender Amount
Tender No. T2020-3 $8,195,000.00
HST (13%)
Total Gross Tender Cost
1,065,350.00
$9,260,350.00
2.Estimated Project Costing Summary
Tender No. T2020-3 $8,195,000.00
Contingency 630,000.00
Total Cost $8,825,000.00
HST (13%) 1,147,250.00
Total Gross Project Costs $9,972,250.00
HST Rebate (11.24%) (991,930.00)
Total Net Project Costs $8,980,320.00
FIR 01-21 March 22, 2021
Subject: Construction of New Fire Station and Headquarters on Zents Drive Page 3
3.Approved Source of Funds – Fire Services Capital Budget
Approved Code
5340.2007.6400
5340.2007.6400
Source of Funds
Debt – 20 Years
DC – Protection
Services RF
Property Taxes
Total Funds
Funds Available
$2,767,180.00
6,214,820.00
0.00
$8,982,000.00
Funds Required
$2,765,000.00
6,213,000.00
2,320.00
$8,980,320.00
Project Cost under (over) approved funds by $1,680.00
Currently the Development Charges-Protection Services Reserve Fund (“DC-Protection Services
RF”) component does not have sufficient funds to meet the financial obligation of this project.
Therefore, it will be necessary to issue debentures to finance the development charge share of the
project. Under the Development Charges Act, 1997, a municipality may borrow when insufficient
development charges are on hand. The debt repayment, including interest costs can be
incorporated into the development charge rate and the debt repayment is funded from future
development charge collections.
Discussion: Design of this new Fire Station commenced in mid-2016, intending to provide a
2-bay single storey facility. In January 2019, the scope of work was expanded to include
administrative areas and an additional vehicle bay to allow for the relocation of Administrative,
Training and Fire Prevention and related support staff from their existing facilities at Fire Station 5
on Bayly Street in South Pickering. Fire Station 5 is at the end of its serviceable life and due for
replacement in the coming years. Geographically, this new station is centrally located within the
municipality. The new 1.77 acre site is also much larger and can better accommodate the additional
amenities than the existing headquarters, such as parking for Fire Services fleet of support vehicles.
Electric vehicle charging stations will also be installed at the new site to accommodate expansion of
the City’s fleet of electric vehicles.
To be designated as Pickering Fire Station No.1 and Headquarters, this new facility will be
constructed on property owned by the City on the northwest corner of Brock Road and Zents Drive.
The site was selected after extensive review of available lands and based on response time
requirements for existing and future developments. The station is needed to ensure that the City
maintains appropriate emergency facilities and coverage as development moves north, especially
with active and ongoing growth in the Seaton lands. As such, the facility has been reflected in the
last two iterations of the City’s Development Charges Study.
FIR 01-21 March 22, 2021
Subject: Construction of New Fire Station and Headquarters on Zents Drive Page 4
Construction is expected to take approximately 18 months, followed by several months of internal
fit-out prior to commencing operations. Related vehicle and major equipment purchases required to
prepare and staff the station for active duty have been addressed through separate procurement
processes. The contract does include provision of a plinth for the future installation of public art to
be located near the property line on Brock Road, slightly north of the new building, where it will be
most visible without obstructing vehicular sight lines.
Tender T2020-3 was advertised on the City’s website on Wednesday, December 23, 2020, for the
construction of a new fire station and headquarters facility. Five bidders were pre-qualified to submit
bids for the project. An optional site meeting was held on Tuesday, January 5, 2021. The site itself
is an open field and was readily available for access to all bidders throughout the tender process.
Three compliant bids were submitted for this project.
The low bidder, Percon Construction Inc., has submitted a signed copy of the City’s Health & Safety
form. The Certificate of Insurance is deemed acceptable to the Manager, Budgets & Internal Audit.
Staff have not previously worked with this vendor, but were satisfied with the references received
through the pre-qualification process. Their submitted waste management plan has been reviewed
and deemed to be acceptable. Community Services’ staff will initiate a requisition upon approval of
requested funding.
Upon careful examination of all bids and relevant documents received, the Community Services
Department recommends the acceptance of Tender No. T2020-3 submitted by Percon Construction
Inc., in the amount of $9,260,350.00 (HST included) and that the total net project cost of
$8,980,320.00 be approved.
Attachments:
1.Supply & Services Memorandum dated February 25, 2021.
2.Draft By-law authorizing the construction of the new Fire Station HQ-DCRF.
3.Draft By-law authorizing the construction of the new Fire Station HQ-Taxes.
FIR 01-21 March 22, 2021
Subject: Construction of New Fire Station and Headquarters on Zents Drive Page 5
Prepared By: Approved/Endorsed By:
Original Signed By Original Signed By
Vince Plouffe, OAA, RAIC Brian Duffield
Manager, Facilities Capital Projects (Acting) Director, Community Services
Original Signed By Original Signed By
John Hagg Ray Rodrigues, CPPB
Fire Chief Manager, Supply & Services
Original Signed By
Caryn Kong, CPA, CGA
Senior Financial Analyst-Capital
& Debt Management
Original Signed By
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
JH:jm
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer
Original Signed By:
To: Brian Duffield
Director, Community Services
February 25, 2021
From: Lisa Chang
Buyer, Supply & Services
Copy: Administrative Assistant, Community Services
Manager, Supply & Services
Manager, Facilities Capital Projects
Fire Chief
Subject: Tender No. T2020-3
Tender for Construction of New Fire Station and Headquarters
On Zents Drive
Closed: Wednesday, February 24, 2021– 2:00pm
File: F-5400-001
Tender No. T2020-3 was advertised on the City’s website on Wednesday, December 23, 2020. An
optional site visit was held on Tuesday, January 5, 2021 at 10:00 a.m. Five companies have
submitted a bid for this project. Chandos Construction Ltd. was rejected in accordance with
Purchasing Policy 23.02.10c. Harbridge & Cross Limited was rejected in accordance with
Purchasing Policy 23.02.1.
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).
Three (3) bids have been retained for review at this time and are attached.
Summary
Harmonized Sales Tax Included
Bidder Total Tendered Amount After Calculation Check
Percon Construction
Inc. $9,260,350.00 $9,260,350.00
J.J. McGuire General
Contractors Inc. $9,315,720.00 $9,315,720.00
Memo
Attachment #1 to Report #FIR 01-21
Tender No. T2020-3 Page 2
JR Certus Construction
Co. Ltd. $9,608,390.00 $9,608,390.00
Chandos Construction
Ltd. $10,329,095.27 $10,329,095.27
Pursuant to Information to Bidders Item 31 Pre-Condition of Award and Item 20 Tendering
Specifications, the following documentation will be requested of Percon Construction Inc. 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 $8,982,000.00 was provided to 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 report:
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 Percon Construction Inc. 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.
Tender No. T2020-3 Page 3
After receiving Council’s approval, an approved “on-line” requisition will be required to proceed.
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.
lc
The Corporation of the City of Pickering
By-law No. /21
Being a by-law to authorize the Construction
of a New Fire Station Headquarters at Brock
Road and Zents Drive project in the City of
Pickering and the issuance of debentures in
the amount of $6,213,000.00 for Development
Charges-Protection Services Reserve Fund
funding for the Construction of a New Fire
Station Headquarters at Brock Road and
Zents Drive project, and that the first source of
repayment for this debt is future development
charge collections.
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section; and,
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or in
any other way; and,
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the “City”); and,
Whereas the Council of the City wishes to proceed with debenture financing for the
Construction of New Fire Station Headquarters at Brock Road and Zents Drive project;
and,
Whereas before authorizing the construction in respect to the Construction of New Fire
Station Headquarters at Brock Road and Zents Drive project, the Council of the City had
the Treasurer update the City’s Annual Repayment Limit, the Treasurer calculated the
estimated annual amount payable in respect of such project and determined that such
annual amount would not cause the City to exceed the updated limit and therefore,
Local Planning Appeal Tribunal (LPAT) approval is not required as per Section 401 of
the Municipal Act, 2001, as amended, and the regulations made thereunder;
And whereas after determining that Local Planning Appeal Tribunal approval is not
required, the Council of the City approved report FIR 01-21 on the date hereof and
Attachment #2 to Report #FIR 01-21
By-law No. /21 Page 2
approved the Construction of New Fire Station Headquarters at Brock Road and Zents
Drive project in the City of Pickering;
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1.That the City proceed with the project referred to as “Construction of New Fire
Station Headquarters at Brock Road and Zents Drive ”;
2.That the estimated costs of the project in the amount of $8,980,320.00 be financed
as follows:
a). the sum of $2,765,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20 years;
b). the sum of $6,213,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20 years to
address the funding shortfall of the Development Charges-Protection Services
Reserve Fund (“DC-Protection Services RF”), and that this amount be repaid
from future development charge collections as the first source of repayment;
c). the sum of $2,320.00 be funded from property taxes;
and such financing arrangements are hereby authorized;
3.That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2021 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid for 2 a) noted above;
4.That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2021 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid from future development charge as the first source of
repayment for 2 b) noted above.
By-law passed this 22nd day of March, 2021
___________________________________
Dave Ryan, Mayor
___________________________________
Susan Cassel, City Clerk
The Corporation of the City of Pickering
By-law No. /21
Being a by-law to authorize the Construction
of a New Fire Station Headquarters at Brock
Road and Zents Drive project in the City of
Pickering and the issuance of debentures in
the amount of $2,765,000.00.
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section; and,
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or in
any other way; and,
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the “City”); and,
Whereas the Council of the City wishes to proceed with debenture financing for the
Construction of New Fire Station Headquarters at Brock Road and Zents Drive project;
and,
Whereas before authorizing the construction in respect to the Construction of New Fire
Station Headquarters at Brock Road and Zents Drive project, the Council of the City had
the Treasurer update the City’s Annual Repayment Limit, the Treasurer calculated the
estimated annual amount payable in respect of such project and determined that such
annual amount would not cause the City to exceed the updated limit and therefore,
Local Planning Appeal Tribunal (LPAT) approval is not required as per Section 401 of
the Municipal Act, 2001, as amended, and the regulations made thereunder;
And whereas after determining that Local Planning Appeal Tribunal approval is not
required, the Council of the City approved report FIR 01-21 on the date hereof and
approved the Construction of New Fire Station Headquarters at Brock Road and Zents
Drive project in the City of Pickering;
Attachment #3 to Report #FIR 01-21
By-law No. /21 Page 2
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1.That the City proceed with the project referred to as “Construction of New Fire
Station Headquarters at Brock Road and Zents Drive ”;
2.That the estimated costs of the project in the amount of $8,980,320.00 be financed
as follows:
a). the sum of $2,765,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20 years;
b). the sum of $6,213,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed 20 years, to
address the funding shortfall of the Development Charges-Protection Services
Reserve Fund, and that this amount be repaid from future development charge
collections as the first source of repayment;
c). the sum of $2,320.00 be funded from property taxes;
and such financing arrangements are hereby authorize;
3.That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2021 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid, for 2 a) noted above;
4.That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2021 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid from future development charge as the first source of
repayment for 2 b) noted above.
By-law passed this 22nd day of March, 2021
___________________________________
Dave Ryan, Mayor
___________________________________
Susan Cassel, City Clerk