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Home My WebLink AboutFIR 03-16 C4 O Report to PiCKERiNG Council Report Number: FIR 03-16 Date: November 21, 2016 From: John Hagg Fire Chief Subject: Fire Hall #2 Outdoor Diesel Generator - Request for Quotation No. Q-26-2016 - File: A-1440 Recommendation: 1. That Quotation No. Q-26-2016 submitted by Standby Generator Services Inc. in the amount of$76,235.45 (HST included) be accepted; 2. That the total gross project cost of$85,275.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of$76,793.00 (net of HST rebate), be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost as follows: a) The sum of $60,000.00, as provided for in the 2016 Capital Budget Fire Services, to be funded by a transfer from the Rate Stabilization Reserve; b) The sum of $16,793.00 to be funded from property taxes; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: Fire Hall #2, located at 553 Kingston Road, currently relies on a portable backup power generator to provide it with electricity in the event of a power failure. This generator must be manually connected to the building during an outage, has limited power generation capability and fuel capacity, and would not meet the operational needs for a long-term power outage. Request for Quotations No. Q-26-2016 was issued on June 28, 2016 to supply and install a new, permanent outdoor diesel generator at Fire Hall #2 and closed on July 19, 2016. The lowest quotation in the amount of$73,521.00 plus HST submitted by Standby Generator Services Inc. exceeded the approved 2016 capital budget. The City engaged this vendor in negotiations and obtained a revised price of$67,465.00 plus HST. This price also exceeds the approved 2016 Capital Budget by 14.4%. As per Financial Control Policy 11.02, capital expenditures that exceed the budget by 10.0% require Council approval. Staff explored additional reductions to the proposed scope of work and determined that the resulting cost savings were negligible, whereas the impact on service reliability at one of the City's key emergency services facilities grew FIR 03-16 November 21, 2016 Subject: Fire Hall #2 Outdoor Diesel Generator Page 2 Quotation No. Q-26-2016 significantly by making any additional cuts. The revised quotation No. Q-26-2016 submitted by Standby Generator Services Inc. in the amount of$76,235.45 (HST included) is recommended for approval. The total gross project cost is estimated to be $85,275.00 and the total net project cost is estimated at $76,793.00 (net of HST rebate), including $8,000.00 in contingency allowance. Financial Implications: 1. Quotation Amount Quotation No. Q-26-2016 $67,465.00 HST (13%) 8,770.45 Total Gross Project Cost $76,235.45 2. Estimated Project Costing Summary • • Quotation No. 0-26-2016 $67,465.00 Contingency 8,000.00 Total Cost $75,465.00 HST (13%) 9,810.00 Total Gross Project Costs $85,275.00 HST Rebate (11.24%) (8,482.00) Total Net Project Costs $76,793.00 3. Approved Source of Funds 2016 Capital Budget— Fire Services Expense Account Source of Funds Budget Required 5340.1607.6178 Rate Stabilization Reserve $60,000.00 $60,000.00 Additional Funds Property Taxes $0.00 $16,793.00 Required . Total Funds $60,000.00 $76,793.00 Project Cost under (over) approved funds by ($16,793.00) The estimated net project cost after factoring a contingency provision has resulted to an over- expenditure of $16,793.00, and exceeded the approved budget by more than 10%. As per Item 11.02 of the Financial Control Policy, Council approval is being sought at this time in order to proceed with the project. C0RP0227-07/01 revised FIR 03-16 November 21, 2016 Subject: Fire Hall #2 Outdoor Diesel Generator Page 3 Quotation No. Q-26-2016 The additional funds required will be funded from property taxes through savings realized from the Fire Services Department operating costs. Discussion: Fire Hall #2 is one of four fire stations operated by the City of Pickering Fire Services, and is the only location not currently equipped with a permanent backup power generator. In the event of a disruption of electrical service at Fire Hall #2, Fire Services staff must manually connect a small portable generator with limited generation capacity and service duration due to limited fuel capacity and supply on site. In case of an extended power outage or related crisis, operation of this facility would be vulnerable to periodic disruptions for refueling and due to the aging nature of the existing backup generator, which is approaching the end of its serviceable life. Interior installation was dismissed due to additional costs that would be incurred to create a fire rated enclosure and by prolonging the installation as individual components would have to be transported and assembled in the basement. Outdoor installation, surface mounted on a concrete pad, is preferable from a cost perspective and a combined generator set with integrated double- wall fuel tank eliminates the risk of soil contamination that accompany the use of underground tanks, while also simplifying refueling operations. The 2014 approved capital budget included project 5340.1401 for $35,000.00 for provision of a permanent backup power generator at this facility. Request for Quotations No. Q-17-2014 and No. Q-30-2014 were issued without success of obtaining acceptable quotations. The project was re-budgeted and approved in the 2016 Capital Budget as project 5340.1607 for $60,000.00. The lowest quotation No. Q-26-2016 submitted by Standby Generator Services Inc. exceeded the 2016 Capital Budget. Staff undertook negotiations with the Standby Services Generator Inc. to obtain cost savings and obtained a further cost reduction of $6,056.00 (plus HST). Any further reductions in scope will produce marginal savings, but risks compromising the required level of service. A contingency allowance of$8,000.00 has been added to this funding request to avoid the need for further council approvals in case of small scale unforeseen conditions, that may be required to complete the work. The Health & Safety Regulations form, current WSIB Clearance Certificate, as submitted by Standby Generator Services Inc., have been reviewed by the Coordinator, Human Resources and are deemed acceptable. The Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal Audit. In conjunction with the foregoing approvals, staff have reviewed the Waste Management Plan, the previous work experience of Standby Generator Services Inc. and the references provided and all are deemed acceptable. Upon careful examination of all quotations and relevant documents received, Fire Services recommends the acceptance of Quotation No. Q-26-2016 submitted by Standby Generator Services Inc. in the amount of $76,235.45 (HST included) and that the total net project cost of $76,793.00 be approved. CORP0227-07/01 revised FIR 03-16 November 21, 2016 Subject: Fire Hall #2 Outdoor Diesel Generator Page 4 Quotation No. Q-26-2016 Attachments: 1. Supply & Services Memorandum dated July 19, 2016. 2. Supply & Services Memorandum dated November 3, 2016 Prepared By: Approved/Endorsed By: i (RJ Vince Plouffe John Hagg Supervisor, Facilities Operations Fire Chief Bn. . • _ d Marisa ino Division ead, Operations Director, Community Services Vera A. Felg: acher Stan Karwowski, CPA, CMA, MBA C.P.P., CPPO, CPPB, C.P.M., CMM III Director, Finance & Treasurer Manager, Supply & Services Caryn Kong, CPA, CGA Senior Financial Analyst Capital & Debt Management BD:mc Recommended for the consideration of Pickering City Council / ,„l// Woo-- . /o, Zoi Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised • ATTACHMENT#„ TO REPORT#�0 3-l4 city . m NNE410 Memo To: Marisa Carpino July 19, 2016 Director, Culture'& Recreation • From: Vera A. Felgemacher Manager, Supply& Services • Copy: Manager, Culture & Recreation Supervisor, Culture & Recreation Supervisor, Supply& Services • • Subject: Quotation No. Q-26-2016 Fire Hall #2 Outdoor Diesel Generator File: F-5300-001 • Quotation Q-26-2016 was sent to seven (7) potential bidders via email and three (3) submissions were received by the official closing date and time of Tuesday, July 19, 2016 at 12:00 Noon. There are 2 stages in the evaluation process which are outlined in Part 2—Evaluation of Quotations of the quotation document. Stage I determines which submissions satisfy all the mandatory submission requirements and provides Respondents the opportunity to rectify deficiencies. Three (3) quotations proceeded'to Stage II evaluation. A summary of the Stage II evaluation results for each quotation is attached. Price Quoted Total Points 'Amount Points • Vendor Name • Awarded (excluding Awarded HST) Standby Generator Services 100 $73,521.00 100 Inc. Northern Generators Company 82.15 $89.495.00 82.15 Ltd. Genrep Ltd. 64.10 $114,700.00 64.10 Standby Generator Services Inc. is the highest-scoring respondent. •A budget of$60,000 was provided to Supply& Services for this procurement. in accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. • ATTACHMENT# —TO REPORT# 1 R'd 3—R6 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: . . (a) Over$30,000 and up to$75,000, the Manager may approve the award, subject to consultation with the appropriate Director and confirmation of financing by the Treasurer. Once this approval is received, an approved "on-line" requisition will be required to proceed. Please direct all enquiries to Supply& Services. Respondents will be advised in due • course. If you require further information or assistance, do not hesitate to contact me or a member of Supply &Services. • • VAFIgb • Attachments (3) • • • • • • • • • • • • • • Page 2 of 2 ATTACHMENT# 2- TO REPORT#_-EL C3- 1 • cm, 00 NONCIONIIi2C Memo To: Marisa Carpino November 3, 2016 Director, Community Services From: Vera A. Felgemacher Manager, Supply& Services Copy: Manager, Facilities Operations Supervisor, Facilities Operations Supervisor, Supply & Services Subject: Quotation No. Q-26-2016 Fire Hall #2 Outdoor Diesel Generator File: F-5300-001 Further to memo dated July 19, 2016 and direction given to Supply & Services to contact the highest scoring respondent- Standby Generator Services Inc. to review the lowest cost quotation for negotiation, as pricing received was over-budget. Standby Generator Services Inc. was able to provide revised pricing in the amount of$67,465.00 plus HST. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. 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: (a) Over$30,000 and up to$75,000, the Manager may approve the award, subject to consultation with the appropriate Director and confirmation of financing by the Treasurer. A budget of$60,000 was provided to Supply & Services for this procurement. The revised price remains over-budget. In accordance with the Financial Control Policy Item 11.04, Current and Capital Budget expenditures in excess of the limits established in Item 11.01, 11.02 and 11.04 shall require the approval of the Treasurer, the Chief Administrative Officer and Council. Once this approval is received, an approved "on-line" requisition will be required to proceed. Plea-e direct all enquiries to Supply & Services. Respondents will be advised in due course. 'If yo require further information, do not hesitate to contact me or a member of Supply& Services. VAF Attachments