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	Corporate Report
DEPARTMENT/	Development Services
DIVISION	Parking Authority	REPORT NO.	2012.058
DATE PREPARED	March 6, 2012	FILE NO.
MEETING DATE	April 2, 2012
SUBJECT	Victoria Parkade Roof Replacement

RECOMMENDATION

With respect to Report No. 2012.058 (Parking Authority), we recommend that the Tender for the Victoria Parkade Roof Replacement be awarded to Bur-Met Contracting in the amount of $637,562.00 exclusive of HST;

AND THAT the Manager – Materials Management be authorized to issue any purchase order for a purchase related to this project;

AND THAT the contingency allowance shall not be expended without proper authorization by the General Manager – Development Services;

AND THAT the work be funded in accordance with the Source of Financing form attached to this Report;

AND THAT the Mayor and Clerk be authorized to sign all documentation related to these matters;

AND THAT the necessary By-laws be presented to City Council for ratification.

The Victoria Parkade was constructed starting in 1979, and is approximately 33 years old. The Parking Authority included the replacement of the parkade roof in the 2012 capital budget request because the roof has exceeded its normal life expectancy of 22 years. Consistent with the Facilities and Fleet proactive Asset Management Plan, cyclical replacement of building components are based on the industry standard useful life. Selected as a preferred site for the strategic photovoltaic roof top installations by Thunder Bay Hydro and City of Thunder Bay, the new roof system has been designed to take into account the installation of solar panels.

This report recommends that Tender No. 2012-002 be awarded to Bur-Met Contracting, the low bidder. This company has been in the commercial roofing business for many years and Administration recommends them as being capable of doing the work.

The Construction/Renovation Services Division of the Facilities and Fleet Department obtained the services of Form Architecture Engineering through the Request for Quotation process to provide tender, contract documents, and contract administration services for the replacement of the existing Victoria Parkade roof.

A public tender for the roof replacement project was advertised in the Chronicle Journal on Saturday, February 25, 2012, and publicly opened on Tuesday, March 13, 2012. As a result of a call for tenders, five (5) responses as listed below were received for the roof replacement.

The tendered costs exclude the applicable HST.

Contractor Tendered Cost

Bur-Met Contracting $ 637,562.00

Cardinal Roofing & Sheet Metal Inc. $ 720,275.00

Holmes Roofing $ 652,100.00

Lakehead Roofing & Metal Cladding $ 678,428.00

Racco Industrial Roofing $ 659,199.61

The low tender for this project was submitted by Bur-Met Contracting. This company has completed similar contracts of this type for the City of Thunder Bay and our consultant Form Architecture recommend them as being capable of doing the work.

Tendered Cost $637,562.00

Add HST $ 82,883.06

Tender Cost plus HST $720,445.06

Less HST Rebate $ 82,883.06

Total Before Contingency $637,562.00

Contingency $ 30,000.00

Total Project $667,562.00

Administration is recommending that a $30,000 construction contingency be included in the project; the contingency shall not be expended without proper authorization by the General Manager – Development Services.

There are sufficient funds in the approved 2012 Capital budget for all the work to proceed. The Parking Authority will include approximately an additional $79,500 in the 2013 operating budget submission as part of its annual debt repayment charge, to pay for the money borrowed to replace the roof.

It is anticipated that the Parking Authority should be able to continue to meet its ability to repay existing debt and this additional debt without any reliance on the tax base. However, this matter will be reviewed annually and reported to City Council through the budget process.

It is concluded that Tender No. 2012-002 should be awarded to the low bidder, Bur-Met Roofing, and all work should proceed.

It is also concluded that the contingency allowance shall not be expended without proper authorization by the General Manager – Development Services and that the work be funded in accordance with the Source of Financing form attached to this report.

Consistent with the Facilities and Fleet proactive Asset Management Plan cyclical replacement of building components are based on the industry standard useful life of the components.

The Victoria Parkade was constructed in 1979 and the roof has well exceeded its twenty two year expected life cycle.

The roof of the Victoria Parkade has been selected as a preferred site for the strategic photovoltaic roof top installations by Thunder Bay Hydro and the City of Thunder Bay. The new roof system has taken into account the eventual installation of solar panels.

This strategic initiative with Thunder Bay Hydro will result in the City, as property owner, benefitting from a new source of revenue through ingoing lease payments for Solar PV installations on City owned buildings and property. Also, the City is the sole shareholder of Thunder Bay Hydro and will receive annual proceeds in the way of dividend from the Solar PV installations. City Administration and Thunder Bay Hydro will undertake a review of the Solar Panel PV installations after the first full year of operations and will recommend a dividend policy for the distribution of net proceeds from the Solar PV operations.

Attachment A – Contract Source of Financing