HomeMy WebLinkAboutCAO 01-21
Report to Council
Report Number: CAO 01-21
Date: January 25, 2021
From: Fiaz Jadoon
Director, Economic Development & Strategic Projects
Subject: 2021 Pre-Budget Approval – Study of the Financial, Economic, and Social Impacts
of the Retirement of the Pickering Nuclear Generating Station
- Request for Proposal No. RFP2020-9
- File: 1500-001
Recommendation:
1. That Proposal No. RFP2020-9 submitted by AECOM Canada Ltd., dated October 20, 2020,
to undertake a study on the financial, economic and social impacts on the retirement of the
Pickering Nuclear Generation Station in the amount of $280,148.67 (HST included) be
accepted;
2. That Council authorize the Director, Finance & Treasurer to finance the net project cost of
$252,282.00 as follows:
a) The sum of $84,094.00 to be funded from property taxes;
b) The sum of $84,094.00 to be funded by The Regional Municipality of Durham; and
c) The sum of $84,094.00 to be funded by the Ontario Power Generation’s Centre for
Canadian Nuclear Sustainability;
3. That the appropriate City of Pickering officials be authorized to take the necessary actio ns as
indicated in this report; and
4. The City Clerk forward a copy of Report Number CAO 01-21 to The Regional Municipality of
Durham and Ontario Power Generation.
Executive Summary: Pickering’s Nuclear Generating Station (PNGS) has been operating
safely and reliably in the City of Pickering for almost 50 years. It is one of Canada's largest power
generation stations, producing over 14 percent of the province’s power.
The Canadian Nuclear Safety Commission (CNSC) renewed the operating license for PNGS in
2018, approving its operation until 2024. In 2024, Ontario Power Generation (OPG) will retire
Units 1 and 4 as permitted under the current operating license, followed by a sequential shutdown
of Units 5 to 8 in 2025. After commercial operations cease, the station will first be placed in a safe
storage state (removal of fuel and water) and eventually decommissioned, beginning in 2028.
Accordingly, Request for Proposal No. RFP 2020-9 was issued on September 18, 2020 calling for
proposals to undertake the Study on the Financial, Economic, and Social Impacts of the
CAO 01-21 January 25, 2021
Subject: 2021 Pre-Budget Approval – Study of the Financial, Economic,
and Social Impacts of the Retirement of the Pickering Nuclear Page 2
Generating Station
Retirement of the Pickering Nuclear Generating Station. The closing date for the bid call was
October 20, 2020 with the City receiving and evaluating seven proposals.
An evaluation committee made up of staff from the City of Pickering and The Regional
Municipality of Durham (Region) reviewed all proposals against criteria outlined in the RFP. The
RFP allowed for an interview of which three proponents were invited to participate. The highest
ranking proponent following all the stages of the evaluation is AECOM Canada Ltd.
It is therefore recommended that the proposal submitted by AECOM in the amount of $280,148.67
(HST included) be accepted and that AECOM be retained to undertake the Study of the Financial,
Economic and Social Impacts of the Retirement of the Pickering Nuclear Generati ng Station.
Financial Implications:
1. Proposal Amount
Proposal No. RFP2020-9 $247,919.18
HST (13%)
Total Gross Proposal Cost
$32,229.49
$280,148.67
2. Project Costing Summary
Total Project Cost
RFP2020-9 $247,919.00
HST (13%) 32,229.00
Total Gross Project Cost $280,148.00
HST Rebate (11.24%) (27,866.00)
Total Net Project Cost
$252,282.00
3. Approved Source of Funds
Approved Code
2121.2392.0000
Source of Funds
Property Taxes
Third Party
Contribution-Region
Third Party
Contribution-OPG
Total Funds
2021 Budget
$84,094.00
84,094.00
84,094.00
$252,282.00
Required
$84,094.00
84,094.00
84,094.00
$252,282.00
CAO 01-21 January 25, 2021
Subject: 2021 Pre-Budget Approval – Study of the Financial, Economic,
and Social Impacts of the Retirement of the Pickering Nuclear Page 3
Generating Station
Project Cost under (over) approved funds by $0.00
Pre-budget approval is required to allow awarding of the contract in early 2021 which will allow for
the completion of the study and the presentation of its findings to Council in 2022. Council
decisions or direction from this report can then be implemente d during the remainder of the year.
Discussion: On September 18, 2020 the City issued RFP2020-9 for a Study of the
Financial, Economic and Social Impacts of the Retirement of the Pickering Nuclear Generating
Station. The purpose of this request for consulting services is to undertake a study to increase
City and Regional understanding of closure and decommissioning impacts and opportunities by
providing:
a) research and analysis of nuclear decommissioning strategies, regulatory processes, risks
and experiences in Canada and other comparable jurisdictions including mitigation
strategies;
b) research, analysis, and modelling of the economic, financial and social impacts to the City
and Region from operational stage through shutdown and decommissioning. The baseline
for the impact analysis and modelling should be defined as a year that includes operation of
all 6 reactors such as 2019, so that the trend from full operations through each subsequent
phase of closure and decommissioning is indicated;
c) recommendations for maximizing the opportunities associated with OPG’s newly
announced Centre for Canadian Nuclear Sustainability (CCNS) to stimulate research,
technology development, innovation, and attracting industry and talent. This includes
possible synergies with post-secondary institutions located in Durham Region; and
d) recommendations for a comprehensive communication plan for Council, residents, and
businesses on decommissioning.
An advertisement was placed on the City' s website and on social media platforms. The RFP
closed on October 20, 2020 with seven proposals being received.
An evaluation committee including City of Pickering and Region of Durham staff reviewed the
proposals against the criteria outlined in the RFP (see Attachment No.1). The proposal submitted
by AECOM Canada Ltd. was the highest scoring proposal.
City Council will be updated on the progress of the study program as it is undertaken and at the
conclusion of the study, the final study report will be forwarded to Council for consideration.
It is therefore recommended that Council authorize pre-budget approval for consulting services for
a study of the financial economic and social impacts of the retirement of the Pickering Nuclear
Generating Station for an amount of $252,282.00 to be financed by the City of Pickering, the
CAO 01-21 January 25, 2021
Subject: 2021 Pre-Budget Approval – Study of the Financial, Economic,
and Social Impacts of the Retirement of the Pickering Nuclear Page 4
Generating Station
Region and OPG, and that the proposal submitted by AECOM, dated October 20, 2020, be
accepted.
Attachments:
1. Supply & Services Evaluation Memorandum, October 26, 2020
2. Supply & Services Summary Memorandum, January 12, 2021
Prepared By: Approved/Endorsed By:
Aneesa Haniff Fiaz Jadoon, Director, Economic
Senior Economic Development Officer Development & Strategic Projects
Ray Rodrigues, CPPB
Manager, Supply & Services
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
AH:ah
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Interim Chief Administrative Officer
Attachment No. 1 to Report CAO 01-21
To: Marisa Carpino
Interim Chief Administrator Officer,
October 26, 2020
From: Ray Rodrigues
Manager, Supply & Services
Copy: Economic Development Assistant
Director, Economic Development & Strategic Projects
Senior Economic Development Officer
Director, Economic Development & Strategic Projects, Durham Region
Subject: Proposal No. RFP2020-9
Study of the Financial, Economic, and Social Impacts of the Retirement of the
Pickering Nuclear Generating Station
Closing Date: October 20, 2020
- File: F-5300-001
Terms of Reference for RFP2020-9 were advertised on the City’s website on September 18, 2020.
7 companies have submitted a proposal.
Stage I – Mandatory Submission Requirements – determines which submissions satisfy all the
mandatory submission requirements and provides Proponents the opportunity to rectify
deficiencies, which was not required for this RFP. 5 proposals proceed to Stage II – Evaluation.
Proposals are attached for evaluation along with the evaluation criteria included in the RFP
document. Each member of the evaluation committee shall independently review and score
the submissions on the basis of the rated criteria outlined in Terms of Reference, Part 2,
Item D – Rated Criteria and sign the evaluation form.
Attachments:
1. Stage I – Evaluation of Submission Requirements
2. Evaluation Form
3. Copy of the Terms of Reference
4. Pricing Evaluation
5. Copy of the proposals received
Evaluation committee members shall complete their review independently and forward the completed
evaluation forms to Ray Rodrigues. In accordance with Purchasing Procedures 14.02 Item 17,
committee members’ scores for each Respondent will be totaled to establish an average score. A
summary of average scores will be prepared by Supply & Services for review and discussion at a
meeting set up for the evaluation committee, if required.
Please direct all enquiries to Supply & Services. Respondents will be advised of the outcome when the
contract has been awarded.
If you require further information, please contact me, or a member of Supply & Services.
Memo
Request for Proposal No. RFP-9-2020 Page 2 of 2
RR
Attachments (9)
Attachment No. 2 to Report CAO 01-21
To: Marisa Carpino
Interim Chief Administrator Officer
January 12, 2021
From: Ray Rodrigues
Manager, Supply & Services
Copy: Director, Finance & Treasurer
Administrative Assistant, Office of the CAO
Director, Economic Development & Strategic Projects
Senior Economic Development Officer
Subject: Proposal No. RFP2020-9
Study of the Financial, Economic, and Social Impacts of the Retirement of the
Pickering Nuclear Generating Station
Closing Date: October 20, 2020
- File: F-5300-001
Further to memo dated October 26, 2020, 7 proposals proceeded to Stage II evaluation.
The Evaluation Committee, consisting of City Staff from the Office of the CAO and the Region of
Durham, conducted independent evaluations of the proposals. A consensus of the scores is
completed and a copy is attached.
In accordance with Item 2.5 Stage IV – Ranking and Contract Negotiations, all scores from Stage
II and Stage III have been added together, the proponents have been ranked based on their total
scores.
Aecom Canada Ltd. is the highest ranking proponent in the amount of $247,919.18 plus HST.
A budget of $140,000 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 Part B. Material Disclosures, Item 1, as a pre-condition of award, the
selected proponent, Aecom Canada Ltd will be required to provide the following documents
for review:
(a) A copy of the City’s Health and Safety Policy form currently dated and signed;
(b) The City’s certificate of insurance or approved alternative form shall be completed by
the Proponent’s agent, broker or insurer.
Please advise if we are to proceed with this task.
Memo
RFP2020-9
Page 2 of 2
In accordance with Purchasing Policy Item 10.04, where written proposals are obtained by the
Manager in accordance with procedures set out in Section 06 and funds are a vailable in the
approved budget:
(c) An award over $50,000 is subject to the additional approval of Council.
Please include the following items in your Report to Council:
1. if Item (a) noted above is acceptable to the Co-ordinator, Health & Safety or designate, if
required;
2. if Item (b) is acceptable to the Manager, Budgets & Internal Audit;
3. any past work experience with the highest ranking proponent Aecom Canada Ltd
including work location;
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.
Upon receiving Council’s approval, an approved requisition will be required to proceed.
Do not disclose any information to enquiries during this time. The Proponent s will be
advised of the outcome in due course.
If you require further information, please feel free to contact me or a member of Supply &
Services.
RR
Attachment 1