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Home My WebLink AboutCS 09-25Report to Council Report Number: CS 09-25 Date: April 29, 2025 From: Laura Gibbs Director, Community Services Subject: New Vehicle Storage Shed at the Operations Centre Tender No. T2025-1 File: A-1440 Recommendation: 1. That the bid submitted by Gerr Construction Limited in response to Request for Tender No. T2025-1 for the construction of the New Vehicle Storage Shed at the Pickering Operations Centre, in the amount of $3,124,032.00 (net HST) or $3,469,100.00 (HST included) be accepted; 2. That the total gross project cost of $4,011,500.00 (HST included), including the amount of the tender, construction contingency, and other associated costs, and the total net project cost of $3,612,480.00 (net HST) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the net project cost of $3,612,480.00 to be funded from the Operations Centre Reserve Fund as approved in the 2023 and 2024 Capital Budgets: 4. That the Director, Operations be authorized to execute the CCDC-2, 2020 Stipulated Price Contract with the above-mentioned contractor pursuant to Request for Tender No. T2025-1; and, 5. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in the report. Executive Summary: The purpose of this report is to award a construction contract and related work for the construction of the new Vehicle Storage Shed at the Pickering Operations Centre located at 1955 Clements Road. The purpose of this new shed is to provide all materials, labour and equipment required for the construction of an approximately 1,180 m2 single storey storage shed with six heated bays and seven unheated bays for a total of 13 vehicle and equipment storage bays as tendered through Request for Tender No. T2025-1. This shed is required to provide additional vehicle storage and maintenance capacity at the Operations Centre at Clements Road, addressing increasing demand as growth continues in the community, until a separate Public Works Depot can be constructed in the north. Request for Tender No. T2025-1 was advertised to the Contractors pre-qualified under RFSQ2024-7 on the City’s Bids & Tenders portal on January 24, 2025, and closed on March CS 09-25 April 29, 2025 Subject: New Vehicle Storage Shed at the Operations Centre Page 2 27, 2025. Bid submissions were received from all pre-qualified contractors. Subject to receipt and approval of all pre-conditions of award required in accordance with the bid document, the lowest compliant bid submitted by Gerr Construction Limited in the amount of $3,124,032.00 (net HST) or $3,469,100.00 (HST included), is recommended for approval. The total gross project cost is estimated to be $4,011,500.00 (HST included), and the total net project cost is estimated at $3,612,480.00 (net of HST rebate). Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan of Advocate for an Inclusive, Welcoming, Safe & Healthy Community. Financial Implications: 1. Tender Amount Tender T2025-1 $3,070,000.00 HST (13%) 399,100.00 Total Gross Tender Cost $3,469,100.00 2. Estimated Project Costing Summary Tender T2025-1 $3,070,000.00 FF&E 100,000.00 Contingency (12%) 380,000.00 Total Project Cost 3,550,000.00 HST (13%) 461,500.00 Total Gross Project Costs $4,011,500.00 HST Rebate (11.24%) (399,020.00) Total Net Project Cost $3,612,480.00 3. Approved Source of Funds – Operations Capital Budget Approved Code Source of Funds Funds Available Funds Required C10300.2307 Ops Centre Reserve Fund $4,266,567.00 $3,612,480.00 Finance Department staff have had conversations with the vendor regarding the possible financial impacts of the tariff war. This project will have some U.S. made components such as steel, overhead doors, mechanical materials/equipment and electrical materials/equipment. At this current time, it is unknown the percentage of U.S. made goods/products relative to the bid Project Cost under (over) approved funds by $654,087 CS 09-25 April 29, 2025 Subject: New Vehicle Storage Shed at the Operations Centre Page 3 price. The bid price supplied by the vender includes all known tariffs/duties as of March 27, 2025. The contractor is committed to making best efforts basis to initiate cost savings proposals, including substitutions for Canadian made products versus U.S. made goods; however, it is our understanding that any substitutions on this project would have to follow the CCDC2 Change Order process and involve the City and its consultants (architect and applicable engineering). Gerr Construction Limited acknowledges its responsibility to keep the City informed in a timely manner regarding possible supply chain interruptions and price increases due to tariff related events. Discussion: The purpose of this report is to award a construction contract and related work for the construction of the new Vehicle Storage Shed at the Pickering Operations Centre located at 1955 Clements Road with 13 fully enclosed vehicle and equipment storage bays. Since the opening of the Operations Centre, the City has grown significantly, adding two new snowplow routes and two new sidewalk routes as well as several new parks proportionally increasing the required level of service. The existing 16 bay vehicle storage shed at the Pickering Operations Centre is at capacity and unable to accommodate additional equipment needed to maintain required levels of service as the City continues to grow. The proposed 13 bay vehicle storage shed is required to provide additional capacity, including 6 separately enclosed heated bays to house all the new equipment associated with the City’s increased maintenance responsibilities. It will be constructed on an open portion of the Operations Centre property, located immediately to the south and behind the Pickering Soccer Centre, entirely within the secure fence line. The heated storage bays will be used to store equipment that requires water such as street sweepers, steamer trailers, water trailers, paint trailers, etc. The unheated storage will be used to store seasonal equipment for winter control as well as summer operations. If approved, the project is expected to be completed by the end of November 2025 in time for use during the 2025-2026 winter control season. Request for Tender No. T2025-1 was advertised to the contractors pre-qualified under RFSQ2024-7 on the City’s Bids & Tenders portal on January 24, 2025, and closed on March 27, 2025. Bid submissions were received from all pre-qualified contractors. Subject to receipt and approval of all pre-conditions of award required in accordance with the bid document, the lowest compliant bid submitted by Gerr Construction Limited in the amount of $3,124,032.00 (net HST) or $3,469,100.00 (HST included), is recommended for approval. The total gross project cost is estimated to be $4,011,500.00 (HST included), and the total net project cost is estimated at $3,612,480.00 (net of HST rebate). Attachment: None. CS 09-25 April 29, 2025 Subject: New Vehicle Storage Shed at the Operations Centre Page 4 Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Vince Plouffe, OAA, MRAIC Cathy Bazinet, CPPB, NIGP-CPP Division Head, Facilities Manager, Procurement & Construction Original Signed By: Laura Gibbs, MBA, MSc. Director, Community Services Original Signed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer BD:vp Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer