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HomeMy WebLinkAboutCS 11-23 Report to Council Report Number: CS 11-23 Date: April 24, 2023 From: Sarah Douglas-Murray Director, Community Services Subject: Chestnut Hill Developments Recreation Complex Arena Desiccant Dehumidification Unit -File: A-1440-001 Recommendation: 1. That Report CS 11-23, regarding Chestnut Hill Developments Recreation Complex Arena Desiccant Dehumidification Unit, be received; 2. That staff be directed to retain the services of A.C.E. Services to complete the necessary repairs in accordance with Purchasing Policy PUR-010, Section 12, Emergency Purchase; 3. That Council authorize the Director, Finance & Treasurer to finance the total net project cost of $217,000.00, as approved for in the 2023 Capital Budget from the Rate Stabilization Reserve; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions indicated in this report. Executive Summary: In November 2022, the desiccant dehumidification unit failed at the Chestnut Hill Developments Recreation Complex (CHDRC) Arenas and was deemed unsafe for operation. An emergency purchase order was issued to Cimco Refrigeration allowing Cimco to complete an emergency replacement of the CHDRC Arena desiccant dehumidification unit. Cimco Refrigeration had provided costing and timelines to make repairs and to replace the current inoperable piece of equipment. Based on information provided by CIMCO and in consultation with the Finance Department regarding the options, it was determined that replacement of the unit would be the most timely and cost effective way to provide the required dehumidification for the two arenas. In early January 2023, Cimco Refrigeration notified the City that there was a potential mistake made within the quote documents that had been provided in November 2022 for the replacement dehumidification unit. In early February 2023, Cimco determined that the quoted replacement dehumidification unit was not of the proper specifications and the pricing within the quote was for an entirely different dehumidification system that was not compatible with other existing arena systems. New pricing was requested and received from two suppliers; Cimco Refrigeration and A.C.E. Services. Quotations were requested to provide the necessary repairs to ensure the current CS 11-23 April 24, 2023 Subject: Chestnut Hill Developments Complex Arena Page 2 Desiccant Dehumidification Unit desiccant dehumidification unit would be fully operational, and to provide interim solutions to ensure arena operations while repairs could be conducted. A.C.E. Services provided pricing that was substantially lower than Cimco Refrigeration to make the necessary repairs. Financial Implications: At this time, staff have received updated costing for repairs and replacement of the non-functioning unit from A.C.E. Services as follows: 1. Estimated Project Costing Summary Quotation $213,345.00 Total Project Cost $213,345.00 HST (13%) 27,735.00 Total Gross Project Costs $241,080.00 HST Rebate (11.24%) (23,980.00) Total Net Project Costs $217,100.00 2. Approved Source of Funds Approved Code Source of Funds Budget Funds Required C10235.2301 Rate Stabilization Reserve $250,000.00 $217,100.00 Project Cost under (over) approved funds by $32,900.00 Staff have determined that the repair costs and timelines for repairs provided by A.C.E. Services to be the most cost effective and can be completed in the shortest time. The current repair costs are quoted at $65,820 plus HST. A.C.E. Services has also provided a quote for $33,000 to cover unknown repairs that may be required based on potential damage within the desiccant dehumidification unit that are not able to be seen until the unit is fully taken apart and to cover the cost of commissioning of the unit once the repairs have been completed. Work will take place as soon as parts and equipment are available, however, due to supply chain issues, A.C.E. Services may not be able to secure replacement parts in advance of the Fall ice season. A temporary dehumidification solution may also be required in order to maintain safe ice conditions once ice is installed in late summer of 2023. A.C.E. Services has also provided pricing of $22,905 per month to provide and install a temporary dehumidification solution which has been deemed a reasonable cost by staff. Any temporary dehumidification solution would only be employed if the required repairs to the current dehumidification system CS 11-23 April 24, 2023 Subject: Chestnut Hill Developments Complex Arena Desiccant Dehumidification Unit Page 3 could not be completed by August 1, 2023. Rental fees would only be charged for the months the solution is in place. As this issue was discovered during the development of the 2023 Capital Budget, Arena Desiccant Dehumidification Replacement (C10235.2301) was included in the 2023 Capital Budget – Recreation Complex – Arenas in the amount of $250,000. Discussion: Low humidity in arena air is integral to providing appropriate and safe ice for ice users. As the floor temperatures within an ice rink are very low in order to make ice, the cooling effect from the ice sheet requires control of the air temperature and humidity levels to prevent fog and condensation from forming within arenas. The condensation that is associated with, and produced by high humidity levels is of concern as condensation drops can emulate rain inside an arena and cause damage to the ice surface. High humidity can also cause mould growth creating an unsafe environment and cause potentially causing damage to structural components of the building. During the winter months of December, January and February dehumidification is not as necessary due to the generally very cold and dry winter air conditions. Proper dehumidification is a necessity during all other months when exterior temperatures are much warmer than the ice surface and humidity levels can change drastically due to exterior factors such as rain. Summer ice for 2023 has been moved to Don Beer Arena to mitigate costs for a temporary dehumidification solution and to accommodate repairs. The current dehumidification unit has a large desiccant wheel that is made of metal and a material that absorbs moisture. This wheel is heated by a natural gas fueled heat source which is used to dry the moisture and provide dry air into the arena. This desiccant wheel has deteriorated and has now become a fire hazard as pieces of debris are falling off of the wheel and contacting the natural gas flame. In accordance with Section 12 Emergency Purchase of the Purchasing Policy: In an emergency situation the Manager shall, on the approval of the appropriate Director, obtain such goods and services as are necessary to respond to the emergency. If the purchase amount exceeds $5,000, the Director must notify the Treasurer at the earliest possible time. If the purchase exceeds $50,000, the Treasurer and the CAO shall be notified and the Director shall submit a report of the incident to the appropriate Committee and Council at the earliest possible time. Subject to Council’s approval of Report CS 11-23, Community Services Department will retain the services A.C.E. Services to complete the necessary repairs as an Emergency Purchase. It is anticipated that the repairs could take from six to ten months to be completed based on the time required to produce the required custom made parts that are required for the desiccant dehumidification unit model that is used at the CHDRC Arena. CS 11-23 April 24, 2023 Subject: Chestnut Hill Developments Complex Arena Page 4 Desiccant Dehumidification Unit Attachment: 1. ACE Services Quote Prepared By: Approved/Endorsed By: Original Signed By Original Signed By Kevin Hayes Sarah Douglas-Murray Manager, Facilities Maintenance Director, Community Services SDM:kh Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Attachment 1 to Report CS 11-23