COMMUNITY SERVICES DIVISION Parks and Recreation Department. Chair and Members of the Community and Corporate Services Committee

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1 Pg 1 of Report PR 13/09 COMMUNITY SERVICES DIVISION Parks and Recreation Department TO: SUBJECT: Chair and Members of the Community and Corporate Services Committee APPLEBY ICE CENTRE EXPANSION & RENOVATION TENDER AWARD CONTRACT Report Number: PR 13/09 Report Date: April 20, 2009 Author(s): Craig Stevens Date to Committee: May 13, 2009 Telephone: Ext Date to Council: May 25, 2009 Ward(s) Affected: All File Number(s): APPROVALS: Department Head General Manager City Manager To be completed by the Clerks Department Committee Disposition & Comments Council Disposition & Comments 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 1.0 RECOMMENDATION: THAT the Tender for Contract 09-09, Appleby Ice Centre Expansion and Renovation ( Appleby Project ), submitted by Norlon Builders London Limited, 151 York Street, London, Ontario, N6A 1A8, be accepted at a total contract price of $8,629, (GST included); and THAT the Mayor and City Clerk be directed to sign any related documents; and THAT the City Clerk be authorized and directed to so notify Norlon Builders London Limited by letter under the seal of the Corporation of the City of Burlington; and

2 Pg 2 of Report PR 13/09 THAT the total project cost of $11,400,000 for the Appleby Project be financed as detailed in Appendix D, Report PR 13/09; and THAT Council approve the revised timelines for the Appleby project as identified in Report PR 13/09 dated April 20, 2009; and THAT the Manager of Purchasing be directed to issue a Purchase Order for the proposed construction works totalling $8,629,063.80; and THAT the City Clerk be directed to prepare the debenture by-law. 2.0 PURPOSE: The purpose of this report is to recommend to Council the tender award for the Appleby Ice Centre Expansion and Renovation - Contract BACKGROUND AND RELATIONSHIP TO STRATEGIC PLAN: 3.1 Background The proposed expansion of the Appleby Project is approximately 66,000 square feet and will include two 200 x 85 rinks and associated amenities, which will provide flexibility in operating programs. The facility expansion will include the addition of one rink that will be dedicated to hockey/ringette sports and one rink that will focus on pleasure and competitive skating. Both proposed rinks will have sport amenities including team rooms, referee s room and spectator viewing. One rink is to be hybrid in nature with amenities that focus on dressing rooms, music room, training opportunities and spectator viewing. This rink will accommodate removable rink boards to provide a more open skating environment and flexibility as a competitive skating centre during the peak skating season while accommodating team sports during the shoulder season. 3.2 Pertinent Council Resolutions Pertinent Council resolutions are contained in Appendix A. 3.3 Relationship to Future Focus VII Responsive Community Goal: City and community services, programs, parks and facilities contribute directly to the exceptional quality of life enjoyed by Burlington citizens. Strategic Action: 2.2 Support and encourage health, wellness and active living by all residents. Initiative: 2.2 A Explore joint partnership opportunities for the development of recreation venues including centres of excellence for sport.

3 Pg 3 of Report PR 13/09 Environmental Stewardship Goal: Burlington will be a clean, green and environmentally healthy city. Initiative: 4.3 A Establish green building standards that encourage the use of alternative building technologies, which reduce resource and energy requirements. 4.0 DISCUSSION: 4.1 Pre-Qualification and Tender Process Request for pre-qualification, #RPQ-08-03, of General Contractors and Refrigeration Sub- Contractors for the Appleby Project were received on December 3, 2008 through an open and competitive process. All pre-qualified contractors and sub-contractors have experience in building arenas. The ten successful General Contractors pre-qualified and the two refrigeration sub-contractors are as follows: General Contractors: Ball Construction Bondfield Construction Company Ltd. Giffels Design Build Inc. Harm-Schuilthuis and Sons Limited Maple-Reinders Construtors Ltd. Maystar General Contractors Inc. McKay Cocker Construction Limited Melloul Blamey Construction Inc. Newman Bros Limited Norlon Builders London Limited Refrigeration Sub-Contractors: Cimco Refridgeration Black & McDonald Limited The Tender documents for Contract 09-09, Appleby Ice Centre Expansion and Renovation, were issued on February 25, 2009, and picked up by all 12 pre-qualified General Contractors and subcontractors. Staff is very pleased with receiving nine competitive bids from the ten pre-qualified General Contractors. The tender for the Appleby Project included two alternate price items. This allowed for the addition or deletion of items to keep the Appleby Project within Council s approved project budget. Both alternate priced items are considered to be integral building components that would create efficiencies in implementation, e.g. re-roofing the existing building while roofers are on site, eliminating the need for future capital budget consideration, and/or reduce the operating costs of the facility in the long term.

4 Pg 4 of Report PR 13/09 Alternate price items include: Screw Compressor in the refrigeration plant Re-roofing the existing front roof of the Appleby Ice Centre 4.2 Market Conditions The current economic situation has been very favourable for Tender results for our 2009 major capital projects. Within the public sector, there has been a greater increased level of competition for all types of projects for goods & services, as well as construction services. It can be extrapolated that as business opportunities and expenditure has been shrinking in the private sector due to a variety of reasons, such as harder to get credit, loss in consumer confidence, coupled with a renewed focus by all levels of government to spend on infrastructure, it has created a perfect storm of a opportunity for the City of Burlington. 4.3 Tender Award Tenders for the Appleby Project were opened on Wednesday, March 25, The lowest of nine tenders received was submitted by Norlon Builders London Limited at a total price of $8,584,663.50, (GST included). Appendix B summarizes the nine tenders received. The low tender submitted by Norlon Builders London Limited was reviewed and found to be a compliant tender. As noted above, all tenders included two alternate price items. Staff is very pleased to report that both alternate items are recommended to be approved to be implemented as part of the tender award. Inclusion of these two components increases the base tender price submitted by Norlon Builders London Limited in the amount of $44, (GST included) to a total contract award price of $8,629, (GST included). 4.4 Proposed Timelines Table 1 identifies the approved timelines identified in PR 7-09 and the proposed revised timelines. Table 1: Proposed Timelines Appleby Project Milestone Approved Completion Date Proposed Revised Date Detailed Design Construction Documentation Feb 2009 Completed including costing exercise and Tender Tender Award Report to C&CS and Council April 2009 May 2009 Construction Start April/May 2009 June 2009 Occupancy Sept 2010 Sept 2010

5 Pg 5 of Report PR 13/ FINANCIAL MATTERS: 5.1 Appleby Project Budget The tender award costs are well below the overall total project budget of $15.1 million. The total project budget includes items such as: Construction hard costs Design fees Project Management Services Furnishings, Fixtures and Equipment LEED Basic certification Inspection and testing Through favourable tender results, a significant savings of $3,700,000 of the $15,100,000 approved funding has been realized. Staff recommend these savings be allocated to reduce funding amounts based on the percentage (City/Ice Users) of the approved budget shared between the City and the Ice Users. Detailed in Appendix D is the recommended shared reduction in funding based on the approved City/User share resulting in a 60% / 40% split in savings to the City and Ice Users respectively. In 2007, CC , the Ice User Group committed to a $6.0 million non-tax supported debenture as their share of the financing. However in applying the recommended savings split, the non-tax supported debt to be repaid through an hourly surcharge is reduced by $1.5 million to $4.5 million. A breakdown of the total project cost and project financing is provided in Appendices C & D. Appendix C indicates that the estimated total project cost is $11,400,000, including project contingency. Staff recommend a project contingency of $1,234,844 or 15% of the cost of construction. Staff will employ contingency strategies that have been utilized for past projects namely: All unforeseen and unanticipated construction cost items related to the Appleby project will be processed through change work orders and subjected to the detailed review by external project managers, consulting prime design consultants and the City. Change orders of greater than $25,000 will require the approval of the General Manager of the Community Services Division. The project contingency for the Appleby Project would be used on an as required basis to an upset limit of $1,234,844. Staff will update Council on a semi-annual basis, e.g. January 2010, regarding status of the contingency funding. Staff also recommend that if the contingency amount identified in Report PR 13/09 is inadequate the Ice Users contribute 40% for any project cost overages that may occur. Staff will report to Council after total completion of the proposed works should this scenario arise. Should the project experience any overall savings staff also recommend that 40% of those savings be attributed to the Ice User Group funding.

6 Pg 6 of Report PR 13/09 To support the Appleby Project Report, PR 17/09, on the same Community and Corporate Services Committee meeting agenda confirms the agreement, business plan and proposed hourly surcharge with the Ice User Group. 6.0 ENVIRONMENTAL MATTERS: The proposed Appleby Project complements the existing facility and the surrounding environment. Some mature vegetation will have to be selectively relocated as part of the redevelopment. The redevelopment of the site replenishes vegetation as part of the overall landscape design. The design of the Appleby Project, takes into consideration the use of building systems and materials that offer greater energy and water use efficiencies. The enhanced green building design practices proposed in the Appleby Project will result in achieving LEED basic certification for the facility. Achieving the LEED basic certification further demonstrates the City s leadership and commitment to sustainable facility development. 7.0 COMMUNICATION MATTERS: Staff will continue to inform stakeholders, including Ice Users, of the status of the project, timelines and occupancy as well as any service impacts through the construction period at regularly scheduled Ice User Group meetings through the Business & Community Development Services section of the Parks & Recreation Department. Staff will arrange a site visit at a key juncture(s) in the construction with the Ice User Group to review project progress. 8.0 CONCLUSION: Report PR 13/09 provides an update on the status of Contract 09-09, Appleby Ice Centre Expansion and Renovation and seeks approval of the tender award for the construction of the Appleby Project to Norlon Builders London Limited. Staff is very pleased to report that the Appleby Project remains on budget. Staff and external consultants will continue to monitor the Appleby Project to maintain the total overall project cost of $11.4 million. The Appleby Project will provide additional venues for the Ice User Group and the general public. The Renovation and Expansion in combination with the existing Centre, will provide for Burlington residents and visitors an enhanced opportunity for the delivery of this recreational service for years to come. Respectfully submitted, Craig Stevens Supervisor Project Management Corporate Strategic Initiatives

7 Pg 7 of Report PR 13/09 Copy filed: s:\inet\ccs Appendices: Appendix A Pertinent Council Resolutions Appendix B Tender Results Appendix C Total Approved Project Financing Appendix D Costing and Financing Staff / Others Consulted: Name Telephone Chris Glenn Doug Pladsen Ann-Marie Coulson Cameron Gosse Jazz Thandi x x x x x Notifications: Name Mailing or Address None Special Instructions: None

8 Pg 8 of Report PR 13/09 Pertinent Council Resolutions Appendix A BP RECEIPT OF ICE SERVICES REVIEW UPDATE AND APPROVAL OF NEXT STEPS REGARDING APPLEBY ICE CENTRE EXPANSION, (January 28, 2008) THAT Council receive the 2007 Ice Services Review Update as information; and THAT Council approve the revised project timelines for the Appleby Expansion project, which involves the planning, design and construction of a new twin pad arena to be open in September 2010 as outlined in Report PR 23/07 dated November 28, 2007; and THAT Council approve the revised facility program for the Appleby Expansion project, subject to the 2008 Capital Budget and Proposed Forecast approval; and THAT the Director of Parks and Recreation be directed to proceed with detailed design of the Appleby Expansion project, subject to 2008 Capital Budget approval; and THAT the Director of Parks and Recreation develop a Request for Expression of Interest (RFEI) to determine opportunities to incorporate a restaurant facility in the Appleby Expansion project based on a full cost recovery model; and THAT subject to approval of the Capital Budget and Forecast, the Director of Parks and Recreation be authorized, in conjunction with the City Treasurer and City Solicitor to continue to work with the Major Ice Users in the development of a formal agreement related to the Appleby Ice Centre Expansion premised on the commitment of the Major Ice Users to fund a non-tax supported debenture in the amount of $6.0 million from a blended ice rental surcharge as outlined in Report PR 23/07; and THAT subject to budget approval, the Director of Parks and Recreation continue to work cooperatively with the Ice Users through the development of this project and report back to Council as appropriate; and THAT the Director of Parks and Recreation be authorized to issue a Request for Proposal to secure additional ice from the private sector as a Bridging Strategy to accommodate ice demands for the 2008/09 and 2009/10 Fall, Winter, Spring seasons to a maximum of 25 hours per week; and THAT the Director of Parks and Recreation be directed to include a rationalization of single pad municipal ice facilities as a specific focus within the 2004 Community Leisure Facilities Plan Update in 2008.

9 Pg 9 of Report PR 13/09 File: 930 (PR-23/07) CC REFERRAL OF CONSIDERATION OF ICE SERVICES REVIEW UPDATE AND APPLEBY ICE CENTRE EXPANSION UPDATE AND DIRECTION TO REPORT BACK, (December 13, 2008) THAT the City Treasurer be directed to report back to the January 21, 2008 Budget & Strategic Planning Committee meeting with a recommendation that will allow the Appleby Ice Centre expansion project to be included in the proposed 2008 capital budget and forecast within the overall corporate financing guidelines and policies approved by Council, for the facility to open in September 2009 rather than September 2010; and THAT the City Treasurer also indicate the implications to the current budget in 2009 and 2010 and the implications to other capital projects in 2009 and 2010; and THAT the City Treasurer receive a business plan no later than March 31, 2008 that supports the ice users ability to repay non-tax supported debt; and THAT consideration of Parks & Recreation Department Report PR-23/07 be referred to the January 21, 2008 Budget & Strategic Planning Committee meeting. File: 930 (PR-23/07) CC APPROVAL OF THE APPLEBY ICE CENTRE EXPANSION UPDATE (November 10, 2008). THAT the financing outlined in Parks & Recreation Department Report PR-41/08, dated October 7, 2008, for the Appleby Ice Centre Expansion project be considered for inclusion in the proposed 2009 Capital Budget; and THAT the revised timelines for the Appleby Ice Centre Expansion project as identified in Parks & Recreation Department Report PR-41/08, dated October 7, 2008, be approved; and THAT the Director of Parks & Recreation be directed to pursue with the Ice Users Group consideration of $1 million of additional self-sustained debt and report back to the Budget & Strategic Planning Committee in January 2009; and THAT the City Treasurer provide various options to achieve LEEDS silver certification; and THAT the Director of Parks & Recreation provide detailed cost/benefit analysis of components of LEEDS silver option or LEEDS silver equivalent. File: (PR-41/08) In order to better understand all issues related to the provision of ice in Burlington, Council, at its meeting on January 28, 2008 provided the following staff direction: Item No. BP : THAT, prior to May 1, the City Clerk be directed to schedule a council workshop regarding the provision of new ice surfaces in Burlington, for the purpose of discussion, and including

10 Pg 10 of Report PR 13/09 representatives of the ice users group, to be invited to participate in a manner similar to the previous discussion with performing arts representatives. PR 7-09 APPLEBY ICE CENTRE EXPANSION UPDATE LEED SUSTAINABLE STRATEGY, FINANCING AND TIMELINES, (February 2, 2009). THAT Council approve a LEED Certified, (Basic), certification including associated costs as the preferred sustainable design strategy for the Appleby Ice Centre Expansion, as outlined in Report PR 7/09 dated January 5, 2009; and THAT as part of the proposed 2009 Capital Budget and Forecast approval process, Council consider Option #4 as the financing option for the Appleby Ice Centre Expansion as outlined in Report PR 7/09 dated January 5, 2009; and THAT Council approve the associated revised timelines for the Appleby Ice Centre Expansion project as identified in Report PR 7/09 dated January 5, 2009; and THAT Council receive the letter dated December 18 th, 2008 from the Major Ice Users regarding their capital contribution. MEMO, March 6, 2007 Council Budget Orientation 2007 Capital Budget & Forecast Follow up Questions Facilities & Buildings Asset Category Appleby Ice Centre LEED Certification MEMO, January 12, 2009 MEMO, February 1, 2009 MEMO, February 2, 2009 Appleby Ice Centre Expansion Design Options Appleby Ice Centre Expansion Report PR 7-09 LEED Sustainable Strategy, Financing and Timelines Additional Information regarding Appleby Ice Centre

11 Pg 11 of Report PR 13/09 Appendix B Contract Appleby Ice Centre Expansion and Renovation Tender Submissions and Revised Tender Value Tender Submitted By: Total Tender Value, ( Including GST) March 25, 2009 Norlon Builders Limited $8,584, Maple-Reinders Construtors Ltd $8,972, Melloul Blamey Construction Inc. $8,998, Giffels Design Build Inc $9,373, Bondfield Construction Company Ltd $9,382, Maystar General Contractors Inc $9,660, Ball Construction Ltd. $10,124, Harm-Schuilthuis and Sons Limited $10,584, Newman Bros Limited $11,392, McKay Cocker Construction Limited NO BID

12 Pg 12 of Report PR 13/09 Funding Sources Total Approved Project Financing Appleby Ice Centre and Renovation Project Architectural Project Design Construction LEEDs Consulting 2008 Approved 2009 Component Report Capital Budget Approved Report PR 7 09 PR45/06 Capital Budget Appendix C Total Project Funding 1. Recreation Facilities Development Charges Reserve Fund (RFDCRF) $ 500,000 $ 1,500,000 $ 2,000, Non Tax Supported Debt $ 6,000,000 $ 6,000, Tax Supported Debt $ 2,000,000 $ 2,055,000 $ 4,055, Provincial Funding (Investment Ontario) $ 2,745,000 $ 2,745,000 Funding Subtotal $ 500,000 $ 2,000,000 $ 12,300,000 $ $ 14,800,000 Hydro Reserve Fund $ 300,000 $ 300,000 Total Project Financing $ 500,000 $ 2,000,000 $ 12,300,000 $ 300,000 $ 15,100,000 Proposed Total Project Financing Appleby Ice Centre Expansion and Renovation Report PR 13/09 Funding Sources Architectural Consulting Report PR45/06 Project Design 2008 Approved Capital Budget Project Construction 2009 Approved Capital Budget LEEDs Component (Funding included in construction column) Total Project Funding 1. Recreation Facilities Development Charges Reserve Fund (RFDCRF) $ 500,000 $ 1,000,000 $ 1,500, Non Tax Supported Debt $ 4,500,000 $ 4,500, Tax Supported Debt $ 2,000,000 $ 655,000 $ 2,655, Provincial Funding (Investment Ontario) $ 2,745,000 $ 2,745,000 Total Project Financing $ 500,000 $ 2,000,000 $ 8,900,000 $ $ 11,400,000

13 Pg 13 of Report PR 13/09 Appendix D Tender Award Contract Appleby Ice Centre Expansion / Renovation Costing and Financing Capital Project Number: AA Mar-09 APPROVED TENDER BUDGET AWARD Cost Contract Element CONTRACTED DESIGN/CONSTRUCTION $12,150, $8,629, GST $0.00 $410, Net Contract $12,150, $8,218, INTERNAL CHARGES Project Management $75, $100, Engineering $0.00 $25, Total Internal Staff Charges $75, $125, EXTERNAL COSTS Design Fees & Project Management Services $855, $872, Fixtures, Furnishings and Equipment $300, $350, Traffic Signalization $150, $150, Permits, Fees, Builders Risk Insurance & Advertise $150, $200, Consulting Services, incld. Testing & Inspection $200, $250, Total External Costs $1,655, $1,822, Project Contingency $1,220, $1,234, TOTAL PROJECT COST (rounded) $15,100, $11,400, PROJECT FINANCING Recreation Facilities Development Charges Reserve Fund (RFCDRF) $2,000, $1,500, Non Tax Supported Debt $6,000, $4,500, Tax Supported Debt $4,055, $2,655, Provincial Funding (Investment Ontario) $2,745, $2,745, Hydro Reserve Fund $300, $0.00 TOTAL PROJECT FINANCING $15,100, $11,400,000.00