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Home My WebLink AboutTR-34-99 ~ \ '" DN: TR.34-99 ,- THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File #f1CZ-rF Res. w:2P/!-33h-:f1, Date: June 21,1999 Report #: TR- 34-99 FILE #: DEV By-law # Subject: TENDER CL99-3, ORONO ARENA ADDITION Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-34-99 be received; 1. THAT Gerr Construction Limited, Bowmanville, Ontario, with a total bid in the amount of $262,899.00, including G.S.T., being the lowest responsible bidder meeting all terms, conditions, and specifications of Tender CL99-3, be awarded the contract for the Orono Arena Addition. 2. THAT the $175,000.00 interest free loan approved pursuant to CS-09-99 be advanced as required based on contract payment certificates to the Orono Athletic Association from the Impact I Escrow Reserve Fund account # 1110- 196-X to be applied to the total contract cost of $270,700.00 ($245,700.00 excluding GST + $25,000.00 consulting) with the balance of the contract costs to be paid by the Orono Athletic Association. 3. THAT the repayment of the interest free loan be deposited back into the Impact 1 Escrow Reserve Fund. 4. THAT the attached By-law marked Schedule "A" authorizing the Mayor and Clerk to execute the agreement be approved. BACKGROUND AND COMMENT Subsequent to report CS-04-99, (Schedule "B" attached) tenders were publicly advertised and issued for the Orono Arena Addition. 807 , , REPORT NO.: TR-34-99 PAGE 2 Tenders were received and tabulated as follows: BIDDER Gerr Construction Limited Bowmanville. Ontario TOTAL BID AMOUNT $258,400.00 NuWood Construction Ajax, Ontario $277,500.00 Baycrest General Contractors' Don Mills, Ontario $358,000.00 As all of the bids submitted exceeded the total budget allocation of $200,000.00 (Total Budget $200,000.00 + $25,000.00 Consulting), a post tender addendum, requesting unit prices for various deletions, and changes, was issued in an effort to reduce the total cost. Only two of the bidders NuWood Construction and Gerr Construction Limited chose to participate in the post tender addendum. Upon review of the revised submissions, and on the advice of the Municipality's solicitor, the revised bid from NuWood was rejected, as it did not comply with the terms and conditions of the tender specifications. The changes approved by the Orono Athletic Association include; Less Separate Price Item 10.2 "Delete the supply and installation of new screen SC.3 at the existing lobby". Less Post Tender Addendum Item 1.8 "All interior non load bearing concrete block walls shall bear on slab thickenings as directed on structural sketch SK.1 bound herein". 808 , REPORT NO.: TR.34-99 PAGE 3 Less Item 1.9 Delete the scheduled 10" precast concrete structural roof slab. Provide a structural steel deck bearing on open web steel joists as described on structural sketch SK.21 SK/3 bound herein. Revise roof membrane to 4 ply BUR on R12 rigid fibreglass insulation on specified vapour barrier membrane. Alternatively 60 mil EPDM is acceptable. Delete scheduled ceiling finishes in rooms 05 1 06 including showers. Provide acoustic tile ceiling finish 9' - 0" above finish floor level in rooms 05 106. Delete sloped insulation. Based on these changes, the revised bid from Gerr Construction Limited is now $245,700.00, including G.S.T. Upon further review of the bids by Purchasing, the Property Manager and the consultant, it was mutually agreed that Gerr Construction Limited, Bowmanville, Ontario be recommended for the contract award for the Orono Arena Addition. The total funds required for this project in the amount of $270,700.00 ($245,700.00 excluding GST + $25,000.00 consulting), will be financed as per recommendations #2 & #3 of the report. Note; This amount assumes 100% rebate on behalf of Orono Arena. The Treasurer has reviewed the requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc. should be referred to the Property Manager. For the information of Council, please refer to a separate report CS-09-99 from the Director of Community Services, which also addresses the funding of this project. 809 REPORT NO.: TR-34-99 Respectfully submitted, /~ " Fred rvath, ' , , " ' ,FA, Property Manager LAS*FH*km PAGE 4 Reviewed by, '\ , /l /} 1_ (\ ()V~--:~ Franklin Wu, M,C,I.P"R.P,P" Chief Administrative Officer . 810 SCHEDULE "8" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON GENERAL PURPOSE AND ADMINISTRATION COMMITIEE February IS, 1999 CS-04-99 ORONO ARENA EXPANSION PROJECT It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CS-04-99 be received; and 2. THAT Council endorse the Orono Arena Expansion Project, subject to receipt of approval from the Durham Central Agricultural Society; and 3. THAT Council approve an interest free loan, to an upset limit of one hundred and twenty five-thousand dollars ($125,000.), to be drawn on as required by the Orono Amateur Athletic Association; and 4. THAT a letter of intent for repayment of the loan in five annual instalments of twenty-five thousand dollars ($25,000.) each with the fIrSt payment due December 31, 2000 and the subsequent payments due on December 31, 2001; December 31, 2002; December 31, 2003; and the fmal payment due December 31, 2004 be received; and 5. THAT the required funds be drawn from the Impact/Escrow Reserve Fund Account #1110-196-X; and 6. THAT the tendering process be administered by the Municipality of Ciarington in conjunction with the Orono Arena Board and the Orono Amateur Athletic Association; and 7. THAT the Durham Central Agricultural Society, the Orono Amateur Athletic Association and the Orono Arena Board be advised of action taken. 1.0 BACKGROUND 1.1 At the November 23, 1998 meeting of Council, a delegation by Mr. Ray Bester, President of the Orono Amateur Athletic Association was received and referred to staff. 1.2 In his delegation Mr. Bester explained the need for an expansion to the Orono Arena involving the addition of 2 dressing rooms, a locker room, a janitorial room and a meeting room, with an estimated cost of two hundred and twenty-five thousand dollars ($225,000.) for the project. , ' oj REPORT CS-04-99 - 2 - FEBRUARY 15, 1999 1.3 The delegation, specifically requested assistance from the Municipality with the following: . Assistance with Building Pennits . Verifying Building Codes . Advice for Tendering Process . Interim Financing 1.4 Subsequently, staff met with Mr. Bester on January 13, 1999 to discuss the project, and devise a plan of action to accommodate the request of the Orono Amateur AtWetic Association. 2.0 DURHAM CENTRAL AGRICULTURAL SOCIETY 2.1 Notwithstanding the existing Orono Arena is owned by the Municipality and operated by the Orono Arena Board with the authority of the Municipality of Clarington, the land on which the bOOding is located is owned by the Durham Central Agricultural Society. 2.2 Through our discussions with Mr. Bester it was noted that the Durham Central Agricultural Society is aware of and has endorsed this project, however staff is requesting that a letter stating the Society's approval should be received prior to commencement of the project. 3.0 BUILDING PERMITS/CODES 3.1 Recognizing that the existing structnre is owned by the Municipality, a bOOding permit is required however the building permit fee will be waived, as is the case with all municipal construction. 3.2 To assist the Association with issues related to the BOOding Code, staff has assigned a representative of the Building Department to work directly with this project on a consultative basis. 4.0 TENDERING PROCESS 4.1 During the meeting with Mr. Bester, it was requested that the Municipality provide assistance with the tendering process. Through that discussion, it was decided that it would be in the interest of both parties to have the project tendered through the Municipality, in conjunction with the Orono Amateur AtWetic Association and the Orono Arena Board. oi2 REPORT CS-04-99 - 3 - FEBRUARY 15, 1999 4.2 This will indemnify the Association members with respect to concerns raised related to builders risk, as the Municipality's insurance carriers will provide this coverage under our existing insurance policy and further it should be noted that the Municipality's liability coverage extends to the Orono Arena Board not to the Athletic Association. As such it is recommended that the Arena Board have a presence in the tendering process. 5.0 FINANCING 5.1 The delegation identified a preliminary goal of one hundred thousand dollars ($100,000.) in commitments prior to proceeding with the project. Currently the Association has commitments of fifty-one thousand dollars ($51,000.) and more recently has received Council approval for a grant of forty-five thousand dollars ($45,000.), through the Advance Funding Program - Ontario Lottery Corporation totalling ninety-six thousand dollars ($96,000.) in commitments. 5.2 During discussions with Mr. Bester a specific request for an interest free loan from the Municipality in the amount of one hundred & twenty-five thousand dollars ($125,000.) was received and referred to the Treasurer. 5.3 Subsequently, a recommendation to provide an interest free loan to an upset limit of one hundred and twenty-five thousand dollars was forwarded with terms established over 5 years, to be repaid with 5 equal installments of twenty-five thousand dollars ($25,000.) each, with the first payment due on December 31, 2000 and that the funds are to be drawn from the Impact/Escrow Reserve Fund Account #1110-196-X. 5.4 Should Council approve the interim financing scenario, commitments for this project total two hundred and twenty-one thousand dollars ($221,000.). Mr. Bester expressed no difficulty in fund-raising the additional four thousand dollars ($4,000.) to meet the total project estimate. 6.0 CONCLUSION 6.1 With the approval of Council, staff will initiate a project team representing the required Municipal disciplines to assist the Orono Amateur Athletic Association with this project through its completion, including project administration. 01) REPORT CS-04-99 - 4 - FEBRUARY 15, 1999 6.2 Staff are confident that with the proven track record of the Orono Amateur AtWetic Association over the past 20 years that the fmancing plan is attainable. Respectfully submitted, Reviewed by, Joseph P. Caruana, Director Community Services Department Franklin Wu, M.C.I.P., R.P.P. Chief Administrative Officer JPC:pg b 14 SCHEDULE "A" BY-LAW 99- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Gerr Construction Limited, Bowmanville, Ontario, for the Orono Arena Addition. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOllOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington with the Corporation Seal, a contract between Gerr Construction Limited, Bowmanville, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "An form part of this By-law. By-law read a first and second time this day of ,1999. By-law read a third time and finally passed this day of ,1999. Mayor Clerk O;J