HomeMy WebLinkAboutCOD-048-10REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: September 27, 2010 Resolution#: GPA"~fP S"~a By-law#: NIA
Report: COD-048-10 File:
Subject: TENDER NO. CL2009-41, FUEL TANK REQUIREMENTS AT VARIOUS
LOCATIONS -SOIL REMEDIATION UPDATE
RECOMMENDATIONS:
It is respectfully recommended to Council the following:
THAT Report COD-048-10 be received.
Submitted by: ~~~~,~. Reviewed by: ~ ~ "~'" `-- ~.~.1
Marie Marano, H.B.Sc., C.M.O., Franklin Wu,
Director of Corporate Services Chief Administrative Officer
C.A.,
Director
MMWDB1bh
REPORT NO.: COD-048-10
PAGE 2
1.0 BACKGROUND AND COMMENT
1.1 Report COD-015-10 was approved by Council on Monday, April 26 for Tender
CL2009-41 Fuel Tank Requirements at Various Locations -Soil Remediation. A
copy of the report is attached as Schedule "A".
1.2 KLD Construction Limited, Ajax, Ontario has removed the underground fuel tanks
at Orono Operations Centre, completed the soil contamination clean-up and
installed the above ground fuel tanks. The cost for the soil contamination clean-
up at Orono Operations Centre was $32,064.85 (excluding GST). The estimate
was $34,490.00.
1.3 KLD Construction Limited, Ajax, Ontario has removed the underground fuel tanks
at Hampton Operations Centre and completed the soil contamination clean up
within the area of the above ground service station. The cost for the clean-up
was $66,735.78 (excluding taxes).
2.0 FINANCIAL
2.1 The approved total expenditure of $120,000.00 for both locations was allocated
from the General Municipal Reserve Fund.
2.2 The total cost for the soil contamination clean-up at Hampton and Orono
Operations Centre was $98,800.63.
2.3 The cost for the Environmental Inspection and Testing Report Investigation of
Potential Impacted Material for Hampton Operations Centre was $7,072.32 (net
HST rebate).
2.4 Due to the excavation of the contaminated soil at Hampton Operations Centre,
the Operations Department require asphalt paving around the fuelling station.
The cost to complete this work was $10,043.71 (net HST rebate).
REPORT NO.: COD-048-10
PAGE 3
2.5 As indicated in Report COD-015-10, $120,000.00 for soil contamination clean up
for Hampton and Orono Operations Centre was allocated from the General
Municipal Reserve Fund. The total cost required for the work completed was
$115,916.66.
2.6 Queries with respect to the department needs, specifications, etc. should be
referred to the Director of Operations.
3.0 CONCLUSION
3.1 This report outlines the expenditure summary for the soil contamination clean up at
Orono and Hampton Operations Centres.
4.0 INPUT FROM OTHER SOURCES
4.1 This report has been reviewed by the Purchasing Manager, with the appropriate
department and circulated as follows:
Concurrence: Director of Operations
Attachments:
Attachment 1 -Schedule "A", Report COD-015-10
SCHEDULE °A'•
~1 r' , Il REPaRT
CORPfJRATE SERVICES DEPARTMENT
Meet#ng: COUNCIL
€tate: April 26, 2010 Resolutian#: ey-taw#: N!A
Repor!#: COp-015-10 F#le#:
Subject: TENDER NO. CL2009-41, FUEL TANK REQUIREMENTS AT VARIOUS
LOCATIONS -SOIL REMED#ATION
RECOMMENDATfONS:
It is respectfully recommended to Counci# the following:
1. THAT Report COD-015-10 be received;
2. THAT staff be authorized to proceed with the soil remediation clean up at Orono
Operations Centre;
3.
4.
5.
&.
7
THAT staff be authorized to proceed with the soil remediation clean up at Hampton
Operations Centre, rf the environmenfal assessment repor# indicates soi# contain#nation
levels in excess of the tolerance levels;
THA7 funds required for the soil remediation fo an amount not to exceed
$120,000.00 be drawn #rom the General Municipal Reserve Fund #or Orono and
Harnpton Operations Centres;
THAT funds required in excess of the $120,000.00 be drawn from funds available in
the .Operations Department Fleet Reserve Aixount after the purchase of equipment
below budgeted amours#s;
THAT the actions taken by the Director of Operations and the Purchasing Manager
with respect to the approvaE of preliminary site work by KLD Construction Limited,
Ajax, Ontario, be endorsed; and
THAT staff report to Counci# on the tota# soil remediation costs if the costs exceed
the combined value of $100,000.00.
CORPORATION OF THE MUNICIPALrrY OF CLARlNGTON
3G TEMPERANCE STREET, SOWMANViLLE.. ONTAP,EO L1C 3Afi 79fl5-923-3379
REPQRT NO.: CdaA~S=iU
RAGE 2
Submitted by:
Director of Gorporate Services
Reviewed by:
Franklin Wu,
Chief Administrative pfficer
(~{Nancy'Faylor, B.B.A., CA.,
1~ Director of Finance/Treasurer
MMIJDl3U}h
REPORT NO.: COQ-0'P~10
PAGE 3
1.4 BACKGROUND ANO COtNMENT
1.1 Report COD-483-09 was approved by Cduncil on Monday, November 2, 2049 for
Tender CL2049-41 Fuel Tank Requ#rements at Various locations. A copy of the
report is attached as Schedule "A".
1.2 KLD Constructien Limited, Ajax, Ontario has commenced work at Depot 42 and
Orono Operations Centre and has removed the underground fuel tanks at Orono
Operations Centre only to discover snit contamination.
1.3 An environmental assessment report is in progress and being prepared by Geo-
. Logic Incorporated under agreement wdh KLD Construction Limited. The
environmerrtai assessment delineates the full extent of any petroleum product that
has escaped into the environment in accordance with the requirements specrtied in
the TSSA Fuei Safety Divis'son's "Environmental Protocols for Operating Fuel
Handling Facilities in Ontario, r3A/99'.
2A ANALYSES
2.1 Geo-Logic Incorporated, took the soil samples as regulated under O. Reg 153 and
submitted the samples to AG,4T Laboratories, Mississauga, Ontario for ana#ysis.
Ghemicat testing for Petro#eum Hydrocarbons Fi - F4 {CB -C50} in soil was
conducted and said samp#es were found to contain chemical parameters in excess
of the tolerance limits. A copy of the laboratory report is attached as Schedule "B".
2.2 The environmental consultant, Geo-Logic {naJrparated, recommends that the area of
the pump island be remediated to meet current standards. Taking into consideration
the ansite soil conditions the impacted area is believed to be localized to the pump
island area. Further investigation is required to confirm this sfatemeht.
REPORT NO.: COt]-ui'~1t)
PAGE 4
2.4 KLD Construction Limited, has provided an estimated cast of $34,480.00 to
remediate the contaminated area at Orono Operations Centre.. The figure is based
on 200 metric tonnes of soil-being removed from the site. The cost for the
remediation may increase and/or decrease depending on the actual tonnes of soil to
be moved and replaced. A copy of the pricing is attached as Schedule "C".
2.5 KLD Construction Limited, has been given approval to complete the removal and
disposal of the reinforced concrete slab at a value of approximately 54,000.00 at
Orono Operations Centre in order to assess the area of contamination. Approval
was provided as scheduling of the excavator and staff to complete the work
requirements is required in order to minimize project delays and mobilization costs.
2.6 KLD Construction limited, has nat commenced work at Hampton Operations Centre.
At the present time it is unknown if soil remediation is required at the Hampton
Operations Centre. Work will not be started at Hampton Operations Centre until the
fueling station at Orono Operations Centre is operational.
3.0 FINANCIAL
3.1 Funds required to complete fhe soil remediation requirements #o an amount not to
exceed $120,000.00 are to be drawn from the General Municipal Reserve Fund for .
Orono and Hampton Operations Centres.
3:2 In the event additional funds over $120,000.DO are required to complete the soil
remediation they wilt be drawn from the 2010 Operations Department Fleet Reserve
Account using funds remaining after fhe purohase of equipment treiow the trudgefed
amount To date three units included in the Fleet Reserve have been purchased
approximately $85,000.DO be}ow the budgeted amount. These funds can be made
available if required to cover the soil remediation project.
REPORT NO.: COD-0~~70
PAGE 5
3.3 The foregoing funding atbcation is provided in the event the casts of the snit
remediation are high. At this point we have an estimate for the Orono location but
this is only an estimate. Actual costs cannot be determined until the extent of the
contamination is determined and clean up. The Hampton site conditions are
unknown at this point and excavation wilt not commence until the-Orono project is
complete.
3.4 Queries with respect to the department needs, specifications, etc, should be referred
to the Director of Operations.
4.0 CONCl.UStON
4.1 .After review and analysis of the laboratory reports and consultant analysis, it was
mutually agreed by Operations and Purchasing that KLD Construction Limited, Ajax.
Ontario be authorized to proceed immediately with the slab removal. The soil
remediation required at Orono Operations Centre will proceed upon approval of
funding.
4.2 .. Site remediation may be required at Hampton Operations Centre and therefore
approve! is requested to complete the work requirements if the environmental
assessment report indicates soil contamination [evets in excess. of the tolerance levels.
4.3 Staff will provide a report to Cauncal on completion of the projects indicating the
additional. funds expended as a result of soil remediation costsrf the value exceeds
the estimated value of $100,400.00. The estimated cost for Orono and the costs for
Hampton is and will be based on the unit pricing noted in Attachment 3.
b.0 iNP1JT FROM OTHER SOURCES..
5.1 This report has been reviewed by the Purchasing Manager, with the appropriate
department and circulated as follows
REPORT NO.: GOD-lT. X10
Concurrence: Directorotdperatlons
Attachments:
Attachment 1 -Schedule "A", Report COD-063-09
Attachment 2 -Schedule"B", AGAT Lat3oratories Results
Attachment 3 -Schedule "C", Orono Yard - Contamination Clean t!p
PAGE 6
SCHEDULE "A"
C1~~~gto~
REPC}RT
CORPQRATE SERVICES DEPRRTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
Report #:
Subject:
Monday, November 2, 2009
COD-063-09 File #
TENDER CL2009-41, FUEL TANK REQUtREMENTS AT VARIOUS
LOCATIONS
By-law #
Rocommendations:
It Is respectfugy recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COO-063-69 be received;
2. THAT KLD Construction Limited, Ajax, DN with a total bid price of $389,085.00 (excluding
G.S.T.}, being the lowest responsible bidder meeting a!I terms, conditions and
spe~ptions of Tender CL2009-4i, be awarded the contrast far the Fuel Tank
Requirement§ at Various Locations;
3. THAT funds required in the amount of $139,185.00 be drawn from the Operations 2009
Capital Budget Ascounf 110-36-370.83677-7401 for Depot 42; and
4. THAT funds required in the amount of $249,900.00 be drawn from the General Municipal
Reserve Fund for Hampton and Orono Operations Centre.
Submitted t3y: ~,~ ~~----'- Reviewed by:
c arano, H.B.So:, C.M.O., Franklin Wu,
Dir lbfCorpor Se s GhiefAdmmistrativeOfficer
al4cy yi r, B.B. .,
Director of Financelfreasurer
MMtJDB1BH
Ct7RFOttATtDN t3F
CE. JNTARIO L4G 3,
of cLARtkGTnN
F
REPORT NO.: COD-063-09
1. BACKGROt)ND AND COMMENT
PAGE 2
1.1 The Operations Department have budgeted for a fuel station at Depok 42 in the
2009 Capital budget.
1.2 In 2009 the Municipality of Clarington fuel supplier changed from Shell Canada
Products Limited to Petro Canada. Af the time of the corrtract award, the new
supplier requested an inspection prior to delivering product, as per Ontario
Regulation 217101.
1.3 The Inspection revealed that the underground tanks do not meet the cxsde
requirements. As per the Liquid Fuel handling Gode 2047, the hamptan and
Orono Operations Centre are not in compliance with the Technical Standards
and Safety Authority {TSSA) requirements. The tanks are single watt Fiberglas
Reinforced plastic {FRP) and da not have drop tubes and internal overfill devices,
There are no monitoring wells. The piping is single wall galvanized steel which
must be upgraded to meet current standards.
1.4 Petroleum Technical Services, our consultant for this project, prepared a report
which outlined the code deficienaes and provided options so that legal
compliance may be achieved.
1.5 Tenders were publicly advertised and called for the Fuei Tank Requirements at
Various Locations as required by the Operations Department. Subsequently,
two tenders and ane na bid were received and tabulated as par Schedule "A"
attached.
2.. ANALYSIS
2.1 The low compliant bid was submiKed by KLD Gonstruction Limited, Ajax,
Ontario.
2.2 The references for KLD Construction Limited, Ajax, D~tario have been
contacted and are satisfactory.
REPORT NO.: COO-063-09
3. FINANCfAt IMPLICATIONS
PAGE 3
3.1 The total funds of $389,085A0 required for Tender CL2009-41 Fuel Tank
Requirements at Variaus locations exceed the Operations tepartment budget.
3.2 Funds in the amount of $200,Q00.00 have been allocated far the fuel station at
Depot 42, in the Operations 2009 Capital Account 1 t0-38-370-83677-7401. The
bid submission was received in the amount of $139,185.00, As this is a growth-
related capital project funded 90% Through development charges, the cost
savings cannot be reatlocated to the other two tanks that are replacements.
3.3 Hampton and Orono Operations Contras were not induded in the ariginai budget.
As boftr locations do not meet the TSSA requirements, the existing fuel stations}
need to be replaced. Funds in the amount of $249,900.00 are required in order
to replace the fuel stations and bring them into compliance.
3.4 tt is recommended that the funding for the Hampton and Orono Operation Centre
come from the Genera; Municipal Reserve Fund.
3.5 Queries with respect to department needs, specit3catians, eta., should tie referred
to the Director of Operations.
4. CONCLUSION
4.1 After review and analysis of the b'sds by Purchasing and Qperations, it was
mutually agreed that the bid from KLD Construction Limited, Ajax, Ontario be
recommended-for the contract €or lender CL2009-41 Fuet Tank Requirements.
6, iNPU'I' FROM OTHER SOURCES
5. f This report has tleen reviewed for recommendation by the Purchasing Manager
with the appropriate departments and dreulated as fotlows.
Concurrence: Operations Co-Ordinator
Attachments: Attachment 1 - Schedule ~4°, Bid Summary
REPORT NO.: CQQ-063-t18
Schedule "A"
Bid Summary
Tender 042009-41
PRGE4
BIDDER Hampton 8 Orono Optional - De 42
° Operations Centre TOTAL B1D
TOTAL BID ~ {GST Excluded)
iGST Excluded)
'
~i<LD Construction Limited
~ ~
$249,900.00 "
I $i 39,185.00
I Aiax, oN f s
"Cannington Gonstruction $364,030.00 $f90,175.00
I Gormely, ON
Canadian Tech Air Systems fnc no bid no bid
ScarborouEh, ON ~ '
r
f
non-compxans - no aia bona