The URL can be used to link to this page

Home My WebLink AboutOPS 07-22 Report to Council Report Number: OPS 07-22 Date: February 28, 2022 From: Brian Duffield Director, Operations Subject: Civic Complex Boiler Replacement -File: A-1440 Recommendation: 1.That Tender No. T2021-14 submitted by S.I.G. Mechanical Services Limited in the amount of $395,385.87 (HST included) be accepted; 2.That Council grant pre-2022 Capital Budget approval for project 5700.2202.6500 (Backup Boiler Replacements) and authorize the Director, Finance & Treasurer to fund the sum of $300,000.00 from Federal Gas Tax (FGT) Reserve Fund; 3.That the total gross project cost of $544,546.00 (HST included), including the amount of the tender, contingency, and other associated costs, and the total net project cost of $490,381.00 (net of HST rebate), be approved; 4.That the Director, Finance & Treasurer be authorized to finance the total net project costs of $490,381.00 through a transfer from the Federal Gas Tax Reserve Fund; and, 5.That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. Executive Summary: The existing backup boiler systems serving the Pickering Civic Complex is original to the building, which opened in 1990. It provides heat throughout the building, and is essential to maintaining indoor temperatures throughout the colder half of the year. These boilers, pumps and other equipment have reached end of life and require replacement. Located in the uppermost level of the central tower, access for larger removal of the existing boilers and delivery of the new equipment will require removal of exterior louvres and the use of cranes from the vehicle drop-off loop on the west side of the building. The work must be completed over the summer and be completely commissioned and operational prior to the 2022-23 heating season. Tender T2021-14 was issued on November 21, 2021, and closed on December 22, 2021. Five bids were received. Subject to receipt and approval of all submittals required by the tender documents, the low compliant bid submitted by S.I.G. Mechanical Services Limited in the amount of $395,385.87 (HST included) is recommended for approval. The total gross project cost is estimated to be $544,546.00 and the total net project cost is estimated at $490,381.00 (net of HST rebate). OPS 07-22 February 28, 2022 Subject: Civic Complex Boiler Replacement Page 2 Financial Implications: 1. Tender Amount Tender No. T2021-14 $349,899.00 HST (13%) Total Gross Tender Cost 45,486.87 $395,385.87 2.Estimated Project Costing Summary Tender No. T2021-14 $349,899.00 Consulting, Testing & Inspection 60,000.00 Controls 30,000.00 Construction Contingency (12%) 42,000.00 Total Project Cost $481,899.00 HST (13%) 62,647.00 Total Gross Project Costs $544,546.00 HST Rebate (11.24%) (54,165.00) Total Net Project Cost $490,381.00 3. Approved Source of Funds - Community Centres Capital Budget Approved Code 5700.1702.6500 5700.2109.6500 5700.2202.6500 Total Funds Source of Funds Federal Gas Tax Federal Gas Tax Federal Gas Tax Funds Available $110,000.00 160,000.00 300,000.00 $570,000.00 Funds Required $110,000.00 160,000.00 _ 220,381.00 $490,381.00 Project Cost under (over) approved funds by $79,619.00 Costs shown above include previously committed and separately awarded consulting and related project fees. They are funded from the same accounts and have been included for clarity regarding the total cost of the project. Discussion: Two backup boiler units currently service the Pickering Civic Complex, providing secondary heat throughout the building. Both units are located in the uppermost level of the central tower, which houses the bulk of the building’s heating and ventilation equipment on the three levels above the second floor. The units and their related pumps and other equipment are at end of life and must be replaced ahead of the next heating season. All of the service and equipment floors in the upper levels of the tower are crowded and only accessible from the interior by a stairwell and open central shaft that was used during the original construction of the facility. Both are too tight to allow for removal of the old equipment or delivery OPS 07-22 February 28, 2022 Subject: Civic Complex Boiler Replacement Page 3 of the new, and there is insufficient space to allow for the existing boilers to be abandoned and left in place. Extensive planning was done to determine how best to complete these tasks in a safe and efficient manner, and will require the temporary removal of a large ventilation louvre on the west tower façade. The new boilers must be commissioned, connected to the City’s centralized building automation system, and ready for operation prior to the start of the next heating season. Mechanical equipment costs have experienced a significant increase over the last twelve months due to supply chain issues resulting from the COVID-19 pandemic, contributing to higher project costs than originally allowed for in previously approved budgets. Additional funds were added to the draft 2022 Capital Budget to offset these increases. Given ongoing instability in the market and risks of ongoing cost inflation, it is preferable to proceed with the price in hand than to risk even higher cost by re-tendering the project after the 2022 budget approval. Pre-budget approval is therefore requested to enable the City to proceed with this time-sensitive work. S.I.G. Mechanical Services Limited have provided written confirmation of their agreement to hold their price beyond the irrevocable 60 day tender period to allow for this work to proceed. Tender T2021-14 was issued on November 21, 2021, and closed on December 22, 2021. Five bids were received. Subject to receipt and approval of all submittals required by the tender documents, the low compliant bid submitted by S.I.G. Mechanical Services Limited in the amount of $395,385.87 (HST included) is recommended for approval. The total gross project cost is estimated to be $544,546.00 and the total net project cost is estimated at $490,381.00 (net of HST rebate). Prepared By: Approved/Endorsed By: Vince Plouffe, OAA, RAIC Stan Karwowski, MBA, CPA, CMA Manager, Facilities Capital Projects Director, Finance & Treasurer Brian Duffield Director, Operations Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By: Original Signed By: Original Signed By: Original Signed By: