File #: 18-142    Version: 1 Name:
Type: Staff Report Status: Passed
File created: 4/4/2018 In control: Council
On agenda: 4/9/2018 Final action: 4/9/2018
Title: Contract Award - Archie Browning Sports Centre Refrigeration Equipment Replacement

REQUEST FOR DECISION

 

DATE:                       April 4, 2018                     Report No. P&R-18-005

TO:                       Laurie Hurst, Chief Administrative Officer                                           

FROM:                      Scott Hartman, Director of Parks and Recreation Services

SUBJECT:

 

Title

Contract Award - Archie Browning Sports Centre Refrigeration Equipment Replacement

End

 

RECOMMENDATION:

 

Recommendation

That Council:

1. award the contract for the Sports Centre Refrigeration Equipment Replacement project to Fraser Valley Refrigeration Ltd;

2. approve an additional $133,928 from the Capital Project Reserve Fund for the completion of the project; and

3. defer the Memorial Park washroom project for consideration in the 2019 Financial Plan.

Body

 

RELEVANT POLICY:

 

Financial Plan Bylaw

Financial Plan 2018-2022

Bylaw No. 2845 - A Bylaw to delegate authority for Purchasing and Disposal

 

STRATEGIC RELEVANCE:

 

Council’s Operational Strategies 2015-2019 identifies the repair, replacement and upgrades of parks and recreation infrastructure as a strategic priority.

 

BACKGROUND:

 

The refrigeration system at the Archie Browning Sports Centre is scheduled for replacement. The intent of this project is to replace the aged chiller and brine equipment with a new system that offers greater reliability, less ammonia storage, energy efficiency and lower operational costs. The new system needs to be operational before the refrigeration plant start up date of July 30th for the arena and September 7th for the curling rink.

 

Council granted early budget approval of $350,000 on February 5th, 2018 for the replacement of the refrigeration equipment at the Sports Centre. The Township recently conducted a Tender process whereby all three bids received were in excess of the original estimates of the project budget. As a result, additional funds of $133,928 are required to complete the scope of work.

 

 

ISSUES: 

 

1.  Rationale for Selected Option

 

Council granted early budget approval of $350,000 for the replacement of the refrigeration equipment at the Sports Centre. Staff engaged the services of Rocky Point Engineering to design and commission the installation of the new plant equipment. These costs were included in the initial budget request.

 

A Tender procurement process was recently conducted for the supply and installation of the equipment. Three bids were received:

                                                                                                                              Bid Cost

Accent Refrigeration Systems Ltd                                          $456,900

Cimco Refrigeration                                                                                    $499,900

Fraser Valley Refrigeration                     Ltd                                          $420,428

 

The submitted bids exceed the original project budget. In order to complete the work required, an additional $133,928 would be needed. The revised project budget is as follows:

 

Rocky Point Engineering Contract (design & commissioning)                                          $42,500

Refrigeration Plant Contract (deconstruction, supply & installation)                     $420,428

Project Contingency                                                                                                                                                                        $21,000

 

Total revised project budget is $483,928.                     

 

Based on the evaluation criteria identified in the Tender documents, staff recommend that the contract be awarded to Fraser Valley Refrigeration Ltd.

 

2.  Organizational Implications

 

This project has been incorporated into existing staff work plans.

 

3.  Financial Implications

 

This project was identified in the Five Year Financial Plan for replacement in 2018. The anticipated cost for this project (including design, supply, installation and commissioning) is now $483,928 and the total amount of funding would be allocated from the Capital Project Reserve Fund.

 

Currently $150,000 is assigned in the proposed 2018 Capital Budget for the construction of a washroom at Memorial Park. In order to minimize the impact to the current 2018 Financial Plan, Council could defer this project for consideration in the 2019 Financial Plan and re-assign these funds to the refrigeration equipment replacement project.

 

4.  Sustainability & Environmental Implications

 

This new system would reduce the amount of ammonia needed in the plant from 1670 pounds to 600 pounds. In addition, the brine and electrical systems will be upgraded to maximize efficiency and assist with further energy savings.

 

5.  Communication & Engagement 

 

Replacement of this equipment will occur over the summer and will have minimal impact on facility user groups. Staff will coordinate any project communication as needed.

 

ALTERNATIVES:

 

1.                      That Council:

                     1. award the contract for the Sports Centre Refrigeration Equipment Replacement project to Fraser Valley Refrigeration Ltd;

2. approve an additional $133,928 from the Capital Project Reserve Fund for the completion of the project; and

3. defer the Memorial Park washroom project for consideration in the 2019 Financial Plan.

 

2.                     That Council not award the contract and provide alternative direction to staff.