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HomeMy WebLinkAboutFIR 01-16C� o1 PICKERING Report to. Executive Committee Report Number: FIR 01 -16 Date: January 11, 2016 From: John Hagg Fire Chief Subject: Emergency Generator Work - Fire Hall #6 - File: A -1440 Recommendation: That Report FIR 01 -16 regarding the emergency purchase of the generator at Fire Hall #6 be received by Council. Executive Summary: The generator system at Fire Hall #6 was subject to an order from the Technical Standards and Safety Authority (TSSA) in November of 2015 due to deficiencies in the existing fueling and exhaust systems. The order requires immediate corrective action before additional fuel can be delivered to the facility. The CAO authorized this work to proceed in accordance with the City Purchasing Policy (PUR 010) Section 12 (Emergency Purchases) to prevent any risk of interruption to the operational readiness of an emergency services facility. The work involves replacement of the existing fuel day tank and generator exhaust system, and removal of the existing underground fuel storage tank. Section 12.01 of the City Purchasing Policy reads as follows: "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 amount 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." Financial implications: As a result of the TSSA order and the emergency nature of this work, the original project included in the 2015 Capital Budget of $35;000 to replace the generator day fuel tank has been expanded to include removing the underground fuel tank and repairs required to the generator exhaust system at a gross cost of $84,847.97 and a net cost of $76,408.23 after HST rebate. 29 FIR 01 -16 January 11, 2016 Subject: Emergency Generator Work, Fire Hall 6 Page 2 A purchase order was issued to Genrep Ltd., in accordance with Section 12 — Emergency Purchases of the Purchasing Policy, for this project. With the increased scope of the project, funding has been revised from debt financing to the Contingency account for emergency operational needs. Additional costs may be incurred if testing results indicate that the soil surrounding the exterior underground fuel tank has been contaminated. An additional contingency of $15,000 has been provided and there is sufficient funding available from the emergency operational needs account. Discussion: The City was originally notified of concerns regarding the status of the interior generator day tank at Fire Hall #6 following transition to its current insurance carrier in 2014. The system uses two fuel tanks, the primary exterior tank is located under the parking lot in close proximity to the generator room and it feeds an interior day tank that serves as a pressure relief buffer between the tanks and the generator. The existing day tank is single - walled, and failure of that tank wall would result in a fuel spill throughout the generator room and pose a serious hazard to the facility. Fuel tanks and generator equipment are regulated by the TSSA, which requires a means of spill containment or alternatively, the installation of double - walled fuel storage tanks. There is insufficient space around the existing day tank to accommodate spill containment. Staff obtained quotes for replacement of the day tank only, and received approval for this scope of work at $25,000 as part of debt - funded projects for this fire hall in the 2015 capital budget. The existing underground fuel storage tank supplying the facility's generator system is oversized, with a capacity of approximately 2,300 litres. The underground tank is double - walled, made of fiberglass, and equipped with the system's current fueling port set in a recessed steel compartment in the parking lot. The fuel port cover has been damaged over the years by vehicular traffic and causes frequent problems during refueling. The underground tank is also 23 years old and at the end of its life cycle, which is typically 20 -25 years. The underground tank was also noted by the new insurance carrier as a potential future liability. Rather than risk continued degradation and possible future failure, and incurring additional costs for separate replacement at a later date, the exterior tank will be completely removed as part of this work. This will . allow for the installation of a 455 litre, double - walled fuel tank inside the generator room, eliminating the need for an exterior tank, and it'll also include a new fueling port. It also eliminates the financial and insurance risks associated with potential future soil contamination. Any existing soil contamination must be remediated as part of this work, but will only be necessary if contamination is detected through testing. Remediation would incur unavoidable additional costs. Removal of the tank is necessary as TSSA regulations will not permit abandonment of the underground fuel tank. Staff commissioned a full inspection of the generator and fueling system following receipt of the TSSA order, and prior to recommending and initiating repairs. The CORP0227 -07/01 revised 30 FIR 01 -16 January 11, 2016 Subject: Emergency Generator Work, Fire Hall 6 Page 3 generator exhaust was found to also require replacement and extension above the roof line for compliance with current requirements. It will be corrected as part of this work along with miscellaneous minor parts replacements required to address changes in legislation over the last year. These costs were not included in the approved 2015 budget. Prepared By: Fred Hyland Deputy Fire Chief JH:nrm Approved /Endorsed By: John Hagg Fire Chief Stan Karwowski Division Head, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Z Z3, zo /S CORP0227 -07/01 revised 31