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Home My WebLink AboutCS 20-21Report to Council Report Number: CS 20-21 Date: April 26, 2021 From: Brian Duffield (Acting) Director, Community Services Subject: Request for Additional Funding for Consulting Services -CHDRC Generator Replacement -File: A-1440 Recommendation: 1.That the additional fee proposal and project costs as submitted by TS Engineering Inc. in the gross amount of $84,750.00 (HST included), and the net amount of $76,320.00 (net HST rebate) for the increase in scope of work the replacement of the backup power generator at the Chestnut Hill Developments Recreation Complex (CHDRC), and associated costs, be accepted; 2.That the total estimated consulting costs including the amount referenced in recommendation 1 above, in the amount of $124,819.00, as presented in Table 2, be approved; 3.That the Director, Finance & Treasurer be authorized to finance the total net consulting costs of $124,819.00 by undertaking an internal loan for period not exceeding 5 years, and this source be revised up to 100 per cent funding through a transfer from the Federal Gas Tax Reserve Fund if deemed eligible by the Association Municipalities of Ontario; and, 4.That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. Executive Summary: TS Engineering Inc. was retained by the City in December 2020 under PO 700753 to develop design and construction documents for replacement of the existing backup power generator at the Chestnut Hill Developments Recreation Complex (CHDRC). The existing generator was installed in 2002 and has reached the end of its serviceable life. Backup power is essential for sustained operation of the building, including maintaining life safety systems, critical lighting, preserving ice in arenas and for the HVAC systems. It has been determined that greater generator capacity than originally envisioned is required to address growing demand and to improve functionality of CHDRC’s banquet hall as an emergency heating and cooling shelter. This will necessitate an increase in generator size and capacity from 100 kW to 750 kW. Higher equipment capacity also increased its size, requiring that it be mounted outside of the building, incurring additional costs. For this reason, an additional fee proposal and project has been submitted by TS Engineering Inc. and is recommended to be approved by way of this report. CS 20-21 April 26, 2021 Subject: Request for Additional Funding for Consulting Services CHDRC Generator Replacement Page 2 Financial Implications: 1. Estimated Project Costing Summary Original scope of work (PO 700753, Dec 11, 2020) $47,660.00 Additional Funding Request: Construction Contract Admin $25,000.00 Air and Noise Assessment 20,000.00 Electrical Coordination and Arc Flash Study 10,000.00 Cost Sub-Consultant 8,000.00 Contingency 12,000.00 Subtotal (Additional Costs) $75,000.00 Total Cost $122,660.00 HST (13%) 15,946.00 Total Gross Project Costs $138,606.00 HST Rebate (11.24%) (13,787.00) Total Net Project Costs $124,819.00 2. Approved Source of Funds - Community Centres Capital Budget Approved Code 5731.1902.6500 Total Funds Source of Funds Debt - 10-Year Internal Loan 5-Year or Fed Gas Tax Reserve Fund Funds Available $1,100,000.00 Funds Required $0.00 124,819.00 $124,819.00 Project Cost under (over) approved funds by ($975,181.00) Staff recommend the approval of an increase in the total net HST project cost to $76,320.00 ($75,000 plus by net HST) from the amount that was approved by the Chief Administrative Officer in a memo dated November 25, 2020. Due to the increase in scope, the award to TS Engineering Inc. will exceed $50,000 and in accordance with the Purchasing Policy, item 10.03 (c), consulting and professional services above $50,000 is subject to the additional approval of Council. The initiating Director shall submit the Report to Council to obtain approval. CS 20-21 April 26, 2021 Subject: Request for Additional Funding for Consulting Services CHDRC Generator Replacement Page 3 In accordance with the Purchasing Policy item 10.03 (b), the original award of PO 700753 in the amount of $47,660.00 (HST extra) to TS Engineering Inc. was previously approved by the Manager, Supply & Services, (Acting) Director, Community Services, Treasurer and the Chief Administrative Officer. Council approval is being sought at this time for the increase in the total net project cost amount of $76,320.00 in order to address an increase in the scope of work and associated costs. The estimated total consulting costs presented in the report will be financed by an internal loan. Staff will be in contact with the Association Municipalities of Ontario (AMO) to determine if these costs can be either funded 100 per cent or partially by Federal Gas Tax (FGT) funding. The City’s established business process is to seek approval from AMO regarding the use of FGT funding. Discussion: The existing 100kW backup power generator at CHDRC was installed in 2002 and supplies only a small number of life safety systems throughout the recreation complex. The unit has reached the end of its serviceable life. Essential components for its ongoing maintenance are no longer readily available. The City retained TS Engineering Inc. in December 2020 to review existing system capacity and demand, including projecting for current and future needs not covered by the existing generator. A peak demand design load was confirmed and will require a 750 kW generator in order to fully accommodate all identified needs. The most significant source of increase are critical heating and cooling systems that must be on backup power for CHDRC to serve as a viable emergency warming and cooling centre. Provision has been included for the addition of a second generator in the future, in a temporary or permanent capacity, in order to improve overall infrastructure capacity and futureproof the system, including built-in climate resiliency. The larger unit will be too large to fit inside the building, where the current generator is located. It will be located outside, in the back-of-house area where the main electrical and mechanical plant for CHDRC are directly accessible. An air and noise assessment will be needed to ensure that the decibel level of the generator is within thresholds set by applicable standards, and to minimize disruption to neighbouring buildings and properties. These additional services significantly increase the original scope of work, which was based on replacement of the existing interior generator. Upon careful examination of the received proposal and relevant documents received, the Community Services Department recommends approval of the proposed increases in consulting costs for replacement of the backup power generator at CHDRC, in the gross amount of $84,750.00 (HST included), and the net amount of $76,320.00 (net HST rebate). Attachment: None CS 20-21 April 26, 2021 Subject: Request for Additional Funding for Consulting Services CHDRC Generator Replacement Page 4 Prepared By: Approved/Endorsed By: Vince Plouffe, OAA, RAIC Ray Rodrigues, CPPB Manager, Facilities Capital Projects Manager, Supply & Services Brian Duffield Stan Karwowski, MBA, CPA, CMA (Acting) Director, Community Services Director, Finance & Treasurer BD:vp Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By:Original Signed By: Original Signed By:Original Signed By: Original Signed By: