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HomeMy WebLinkAboutCOD-066-09~I~".1iCi~tOll Leading fAis Way REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE p Date: November 16tH 2009 ~e~j u'f t~1 ~ G ~~ ~~ ~~~ ~ / Report #: COD-066-09 File # Subject: DARLINGTON SPORTS CENTRE RENOVATION PRE-PURCHASE OF ICE PLANT By-law # Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-066-09 be received; 2. THAT the competitive bidding requirements of the Purchasing By-law be waived; 3. THAT Manager of Purchasing be authorized to invite submissions from selected manufacturers for the supply and installation of the required ice plant equipment required for the renovation of the Darlington Sports Centre; 4. THAT the resulting bid submission be assessed and awarded by the Purchasing Manager in consultation with Community Services and incorporated into the public tender to be issued for the renovations to the Darlington Sports Centre; and 5. THAT the final renovation tender for the Darlington Sports Centre be reported to Council for award. Submitted by: Reviewed by: 'K~fane Marano, H.B.Sc., C.M.O., Director of Corporate Services Nancy a or, B. Director df Finan~lTreasurer MMWDB\1km Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169 ' REPORT NO.: COD-066-09 PAGE 2 1. BACKGROUND AND COMMENT 1.1 The existing Darlington Sports Centre Renovation Project scheduled to be tendered in the early part of 2010 includes the replacement of the existing ice plant, rink piping and header required for the manufacture of rink ice. The intent of the project is to have the project commence in the late spring of 2010 when the ice is removed from the arena and be completed in time for the scheduled opening of the arena ice season in September. 1.2 With the number of similar projects being undertaken by numerous municipalities in the next several months as a result of the Build Canada Fund and planned projects there is a concern that the two known contractors for ice plant equipment will be hard pressed to meet the delivery timelines established to see the completion of the numerous projects in the limited time available for installation, usually between the months of May to September. 1.3 In order to improve the chances that the Clarington project will be completed on time, staff is proposing that the availability of the ice plant and the installation be secured prior to the actual tender call for the arena renovation. Once pricing is established and the commitment for delivery is obtained the supply and installation along with the value of the plant and installation will be incorporated into the tender call for the complete project. On award of the renovation contract the successful bidder will complete the transaction with the ice plant contractor and will establish the contractor as asub-contractor on the project. The only expense anticipated for the Municipality by taking this approach is staff time and the cost of the required shop drawings for the ice plant and the piping. 1.4 There are two known contractors of ice plant equipment. It is proposed that each firm will be invited to provide bid submissions based on specifications for the supply and installation of the ice plant and all required equipment. Actual award in the form of a letter of undertaking will be based on availability, compliance with specifications, references and cost. The letter of undertaking will provide the commitment on the part of the municipality to include the selected contractor and the required equipment in the final tender for the renovation of the arena. 1.5 The current Purchasing By-Law allows for purchases through negotiations, under certain conditions, more specifically "when, due to market conditions, Goods and Services are in short supply". In this situation, staff is anticipating a shortage due to high demand and is recommending early action to secure the availability of the required equipment and service. REPORT NO.: COD-066-09 PAGE 3 As the proposed process will involve a value in excess of that provided by the by-law staff are seeking approval to waive the requirements of the Purchasing By-law and proceed with an invited bid solicitation to secure the pricing and commitment to supply. 2. FINANCIAL 2.1. The Darlington Renovation project is budgeted at $2,230,000.00 and it is estimated that the ice plant equipment and installation will amount to approximately $400,000.00. 2.2. The required funds are to be drawn from Account #110-42-421-84267-7401. 2.3. Actual expenditure, excluding the shop drawings expense will not be made until after the actual contract is awarded and the contractor takes delivery of the ice plant. 3. CONCLUSION 3.1. It is the recommended that staff be authorized to invite bids for the supply and installation of the ice plant equipment and provide a letter of undertaking to the successful bidder that the bidder's equipment, services and price will be included in the tender for the renovations to the Darlington Sports Centre. 3.2. Queries with respect to the project should be referred to the Director of Community Services. 3.3. This report has been reviewed for recommendation by the Purchasing Manager and the appropriate department and circulated as follows: Concurrence: Director of Community Services