HomeMy WebLinkAboutCS 14-17 C:wy o Report to
PiCKERiNG Council
Report Number: CS 14-17
Date: June 12, 2017
From: Marisa Carpino
Director, Community Services
Subject: Tender for Construction of the New Operations Centre
- Tender No. T-8-2017
- File: A-1440
Recommendation:
1. That Tender No. T-8-2017 submitted by Aquicon Construction Company Ltd. in
the amount of$26,865,750 (HST included) be accepted;
2. That the total gross project cost of$28,786,750 (HST included), including the
amount of the tender and contingency costs, and the total net project cost of
$25,923,360 (net of HST rebate), be approved;
3. That Council authorize the Director, Finance & Treasurer to finance the net
project cost of$25,923,360 as follows:
a) the sum of $16,014,700 be funded from the Operations Centre Reserve
Fund;
b) the sum of$9,907,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed twenty years
to address the funding shortfall of the Development Charges-Operations
Services Reserve Fund ("DC-Operations Services RE"), and this amount
be repaid from future development charge collections, as the first source
of repayment;
c) the sum of$1,660 be funded from property taxes;
d) the annual repayment charges in the amount of approximately $729,000
be included in the annual Current Budget for the City of Pickering
commencing 2017, 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 2017 Development Charges Background Study;
e) 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;
4. That the draft by-law attached to this report be enacted; and
Report CS 14-17 June 12, 2017
Subject: Tender for Construction of the New Operations Centre Page 2
5. That the appropriate City of Pickering (the "City") officials be authorized to take
the necessary actions as indicated in this report.
Executive Summary: The existing Operations Centre, located at 2570 Tillings
Road in Pickering, was constructed in the early 1970's and occupies a site of
approximately 10 acres. The facility is at the end of its economic life and is unable to
meet the operational needs of the Public Works Section.
Design consultants, Roundthwaite Dick & Hadley Architects Inc., were retained to
design a new Operations Centre to be located on the vacant 20 acre site located at
1955 Clements Road, adjacent to the Pickering Soccer Centre. The new facility is
designed to accommodate the current and future operational needs of the Public Works
Section which includes the maintenance of new roads, sidewalks, parks and property
associated with the planned growth of the City.
In order to achieve full occupancy of the New Operations Centre in advance of the
2019/2020 winter season, this construction project must start by July 2017. The New
Operations Centre will be supplemented by a future northern satellite facility for which
the timing and location will be determined based on the actual growth of Seaton.
On January 26, 2017, Request for Proposal RFP-2-2017 was publically released for the
Prequalification of general contractors for Construction of the New Operations Centre
project. A total of 23 proposals were received by the deadline of February 16, 2017.
Based on the results of the evaluation rated criteria, 6 general contractors were
successfully prequalified by the City to submit bids for consideration in this project.
Tender No. T-8-2017 was released to the prequalified general contractors and was also
made available for information to the public on the City's website on April 19, 2017, and
closed on May 30, 2017.
The low bid submitted by Aquicon Construction Company Ltd. in the amount of
$26,865,750 (HST included) is recommended for approval. The total gross project cost
is estimated to be $28,786,750 (HST included) and the total net project cost is
estimated at $25,923,360 (net of HST rebate).
Financial Implications:
1. Tender Amount
Tender No. T-8-2017 $23,775,000
HST (13%) 3,090,750
Total Gross Tender Cost $26,865,750
Report CS 14-17 June 12, 2017
Subject: Tender for Construction of the New Operations Centre Page 3
2. Estimated Project Costing Summary
Tender No. T-8-2017 $23,775,000
Contingency 1,700,000
Total Project Cost $25,475,000
HST (13%) 3,311,750
Total Gross Project Costs $28,786,750
HST Rebate (11.24%) (2,863,390)
Total Net Project Cost $25,923,360
3. Approved Source of Funds
Operations Centre
Approved Code Source of Funds Budget Required
5315.1701.6500 Debt— 20 Years $2,000,000 $0
DC-Operations Services 9,185,000 9,907,000
RF (through debenture
financing)
Operations Centre 12,229,000 16,014,700
Reserve Fund
Rate Stabilization Reserve 186,000 0
Property Taxes 0 1,660
Total Funds $23,600,000 $25,923,360
Project Cost under (over) approved funds by ($2,323,360)
This capital project is the largest capital project undertaken by the City over the last 31
years. This project does not rely upon any property taxpayer funded debt.
The DC-Operations 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 charge funds 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. This report requests approval to issue $9.9 million in debentures for
the development charge portion of the project. The debt repayment will be included in
the City's new development charge rates which will be presented to Council in
December 2017.
Report CS 14-17 June 12, 2017
Subject: Tender for Construction of the New Operations Centre Page 4
When the 2017 Budget was approved, the need to finance the DC-Operations Centre
RF shortfall by issuing debentures had been identified. Many municipalities such as
Ottawa, Oakville and Milton have been employing this financing strategy. The City will
be employing this financing strategy for the New Operations Centre.
The 2017 Operations Centre financing strategy as presented to Council initially required
the City to borrow $2.0 million (taxpayer funded). However, due to the successful land
sales on Brock Road, the City does not have to borrow funds to cover the project's
construction costs and reduces the financial impact on the 2018 budget.
Discussion: The New Operations Centre will be located at 1955 Clements Road, east
of Squires Beach Road in Pickering. The approximately 10ha (25 acre) site was
purchased by the City of Pickering in 2012. In partnership with the Pickering Soccer
Club, the City developed the northeast part of the site for the new Pickering Soccer
Centre which opened to the public in late 2014. The remaining site measuring 8ha (20
acres) is dedicated to the construction of the New Operations Centre with the proposed
gross floor area of the main building at approximately 4,925m2 (53,000 ft2).
The New Operations Centre will replace the existing facility located at 2570 Tillings
Road, which is over 40 years old. The existing facility is insufficiently sized for planned
growth in Pickering, including the new communities of Duffin Heights, Seaton and the
City's Downtown Intensification. The New Operations Centre will be built to
accommodate the existing Public Works Section with capacity for planned growth, and
will consist of the following components:
• Administration Area
• Vehicle and Equipment Storage
• Garage Bays (vehicle and equipment repair)
• Sand and Salt Structure
• Outdoor Materials Storage
• Workshops and Wash Bay
The New Operations Centre will be supplemented by a future northern satellite facility
for which the timing and location will be determined based on actual growth of Seaton.
The City prequalified 6 general contractors with experience in this type of project
through the prequalification process under Request for Proposal No. RFP-2-2017.
Roundthwaite Dick and Hadley Architects Inc. (RDH) prepared drawings and
specifications for Tender No. T-8-2017 Construction of the New Operations Centre
project tendering document. A mandatory site visit was held on Tuesday, April 25, 2017
and the 6 bidders attended, of which 5 bidders submitted a tender for Construction of
the New Operations Centre project at 1955 Clements Road, which closed on Tuesday,
May 30, 2017.
•
Report CS 14-17 June 12, 2017
Subject: Tender for Construction of the New Operations Centre Page 5
As part of the prequalification process in RFP-2-2017, the health and safety documents
provided by Aquicon Construction Company Ltd. were deemed acceptable to the
Coordinator, Human Resources and the previous work experience, references and
bonding available were deemed acceptable to the Community Services Department.
The Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal
Audit. The submitted Waste Management Plan and proposed list of sub-trades is
deemed acceptable to the Community Services Department. In conjunction with the
foregoing approvals, the bid is deemed acceptable.
Upon careful examination of all tenders and relevant documents received, the
Community Services Department recommends the acceptance of the low bid submitted
by Aquicon Construction Company Ltd. for Tender No. T-8-2017 in the amount of
$26,865,750 (HST included) and that the total net project cost of$25,923,360 be
approved.
Attachments:
1. Location Map
2. Supply & Services Memorandum dated May 30, 2017
3. Being a by-law to authorize the Construction of the New Operations Centre project
in the City of Pickering and the issuance of debentures in the amount of
$9,907,000 for the Development Charges-Operations Services Reserve Fund
funding of the New Operations Centre project, and that the first source of
repayment for this debt is future development charge collections
Report CS 14-17 June 12, 2017
Subject: Tender for Construction of the New Operations Centre Page 6
Prepared By: Approved/Endorsed By:
01W
Brian Duffield Marisa Carpino, MA
Division Head, Operations Director, Community Services
Caryn Kong, CPA, CGA Stan Karwowski
Senior Financial Analyst-Capital and CPA, CMA, MBA
Debt Management Director, Finance & Treasurer
S-1
Vera Felgemacher
C.P.P., CPPO, CPPB, C.P.M., CMM Ill
Manager, Supply & Services
MC:bd
Recommended for the consideration
of Pickering Cit ouncil
Ar, /, / jimte frs. zai7
Tony Prevedel, P.Eng.
Chief Administrative Officer
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ENGINEERING SERVICES Attachment for Community Services 64 oti
Department Report CS 14-17 PICKERING
DATE: 1955 Clements Road - New Operations Centre
N.T.S June 1/2017
ATTACHMENT# TO REPORT# i-1.4
PICKERING
Memo
To: Marisa Carpino May 30, 2017
Director, Community.Services
From: Vera A. Felgemacher
Manager, Supply& Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services
Subject: Tender No. T-8-2017
Tender for Construction of the New Operations Centre
Closing: Tuesday, May 30, 2017— 2:00pm
File: F-5400-001
In accordance with Request for Proposal No. RFP-2-2017 Prequalification of General Contractors
for Construction of a New Operations Centre, the following companies were approved by the Chief
Administrative Officer as prequalified contractors on March 24, 2017:
• Aquicon Construction Company Ltd.
• Bondfield Construction Company Ltd.
• Buttcon Ltd.
• Graham Construction and Engineering LP
• J.J. McGuire General Contractors
• Laurin General Contractors
Tender No. T-8-2017 was advertised on the City's website on April 19, 2017. Durham
Construction Association and Toronto Construction Association were notified of the project
with a copy of the advertisement. The prequalified bidders were invited to download the
tendering document from the City's website. A mandatory site visit was held on Tuesday,
April 25, 2017 at 10:00am. The six prequalified bidders attended the site visit of which five
have submitted a bid.
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.
All deposits other than the low three bidders may be returned to the applicable bidders as provided
for by Purchasing Procedure No. PUR 010-001, Item 13.03(w). The low three bids have been
retained for review at this time and are attached to this memorandum.
Summary
Harmonized Sales Tax Included
Bidder Total Tendered Amount After Calculation Check
Aquicon Construction Company Ltd. $26,865,750.00 $26,865,750.00
J.J. McGuire General Contractors $29,493,000.00 $29,493,000.00
152610 Canada Inc. $30,707,129.63 $30,707,129.63
0/A Laurin & Company
Buttcon Ltd. $33,165,500.00 $33,165,500.00
Automatic Rejection: Form of Tender Page 44 was
not completed and returned with the tendering
Bondfield Construction Company Ltd. document as specified. Reference: Purchasing Policy
No. PUR 010, Item 23.02 — 14, Form of Tender Page
44; Information to Bidders — Item 11, 26, 27, 28.
Schedule of Optional Price -Table 2 is included with each bid for your information. As instructed
by Division Head, Facilities Operations, bidders were advised in Addendum No. 3 the Table 2 —
Schedule of Optional Prices is not a consideration of award.
Pursuant to Information to Bidders Item 29 and Tendering Specifications Item 21 and Item 22,
the following documents will be requested of the low bidder for review during the evaluation
stage of this tender call. Please advise if we are to proceed with collecting the following
document:
(a) The City's certificate of insurance or approved alternative form completed by the Bidder's
agent, broker or insurer;
(b) A Waste Management Plan; and
(c) A completed Sub-contractor list, listing all sub-contractors who may be carrying out any
part of this Contract.
A budget of$23 million 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.
May 30, 2017
Tender No. T-8-2017 Page 2
Construction of the New Operations Centre
As such, in accordance with Purchasing Policy Item 06.12, 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 the Certificate of Insurance is acceptable to the Manager, Budgets & Internal Audit;
2. if the List of Subcontractors is acceptable;
3. if the Waste Management Plan is acceptable;
4. the appropriate account number(s) to which this work is to be charged;
5. the budget amount(s) assigned thereto;
6. Treasurer's confirmation of funding;
7. related departmental approvals; and
8. related comments specific to the project.
After receiving approval from Council, 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.
I''you require further information, please feel free to contact me or a member of Supply &
S rvices.
VAF
Attachments
•
May 30, 2017
Tender No. T-8-2017 Page 3
Construction of the New Operations Centre
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ATTACHMENT# 3 TO REPORT# G 5 1-y
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the Construction
of the New Operations Centre project in the
City of Pickering and the issuance of
debentures in the amount of $9,907,000 for
the Development Charges-Operations
Services Reserve Fund funding of the New
Operations Centre 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 the New Operations Centre project; and
Whereas before authorizing the construction in respect of the Construction of the New
Operations Centre 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, Ontario Municipal Board
approval is not required as per Section 401 of the Municipal Act, 2001, as amended,
and the regulations made thereunder;
BY-LAW NO Page 2
And whereas after determining that Ontario Municipal Board approval is not required,
the Council of the City approved report CS 14-17 on the date hereof and awarded
Tender No. T-8-2017 for the Construction of the New Operations Centre 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 the New
Operations Centre";
2. That the estimated costs of the project in the amount of$25,923,360 be financed as
follows:
a) the sum of$9,907,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed twenty years,
to be repaid from future development charge collections as the first source
of repayment is hereby authorized;
b) the sum of$16,014,700 be funded from the Operations Centre Reserve
Fund;
c) that the sum of$1,660 be funded from property taxes;
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 2017 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.
By-law passed this 12th day of June, 2017
David Ryan, Mayor
Debbie Shields, City Clerk