Report to: General Committee Date
Report Authored: April 19, 2010
SUBJECT: Award
of Contract for 083-R-10 250kW Grid Tie Solar Photovoltaic System at 8100 Warden Ave.
PREPARED BY: John
Southwood, O.P. McCarthy & Associates
Atiq Rahman, Asset
Management
Graham Seaman,
Sustainability Office
Tony Casale, Senior
Buyer, Purchasing
RECOMMENDATION:
1)
THAT the report titled. “Award of Contract 083-R-10 –
250kW Grid Tie Solar Photovoltaic System (PV) at 8100 Warden Ave.” dated April 19, 2010 be received;
2)
AND THAT Council authorize the installation of a 250kW
solar PV panel system on the roof of the 8100 Warden Ave. warehouse, as shown in Figure
#1;
3)
AND THAT Staff be authorized to award Contract 083-R-10
to the highest ranked / 2nd lowest priced supplier Carmanah
Technologies Corporation in the amount of $1,592,640.67 inclusive of HST and
exclusive of GST;
4)
AND THAT a separate purchase order in the amount of $152,640.00
inclusive of HST and exclusive of GST be issued for contingency to cover any
additional fees and that the Director of Asset Management be authorized to
approve expenditure of this contingency amount up to the specified limit in
accordance with the Expenditure Control Policy and a monthly expenditure status
be provided to the Town Treasurer;
5)
AND THAT Staff be authorized to acquire applicable
permits as well as to retain a qualified professional to inspect the system
during construction for an upset limit of $20,352.00 inclusive of HST and
exclusive of GST in accordance with the Town’s purchasing bylaws;
6)
AND THAT the awards be funded with $1,028,660.00 from
capital budget account 056-5350-9517-005 (Facility Energy Retrofits – Stimulus)
and $736,972.67 from capital budget account 056-5350-9540-005 (Photovoltaic
Solar Panel System at 8100 Warden – Supplemental Funding);
7)
AND THAT
the annual Feed-In-Tariff revenue of approximately $178,000 be directed back to
Life Cycle Reserve Fund until $736,972.67 is paid back.
8)
AND THAT a policy on energy retrofit savings and
renewable energy revenues be developed to address the remaining revenues from
the Feed-In-Tariff after the $736,972.67 from the Life Cycle Reserve is replenished;
9)
AND THAT
the CAO be delegated authority to
sign-off and complete this Feed-In-Tariff contract with the Ontario Power
Authority.
10)
AND THAT Staff be authorized and directed to do all
things necessary to give effect to this resolution.
The purpose
of this report is to report back to General Committee with the budget and
design details for all proposed and recommended solar PV panel systems at 8100 Warden Ave.,
as per the Resolution of Council Meeting held on December 15, 2009 and to
obtain council approval to award Contract 083-R-10.
At the
Council Meeting held on December
15, 2009, staff was directed to complete design, contract documents
and tender for construction of a photovoltaic solar panel system on 8100 Warden Ave.
warehouse roof. This project was brought
forward as part of the federal and provincial stimulus funded energy retrofit
project.
Implementing a solar PV project at a Town
owned building will demonstrate the Town’s leadership in renewable energy generation, will generate revenue through the Ontario Power
Authority’s Feed-In-Tariff (FIT) program and will serve to increase the Town’s profile
in this field while securing our commitment to champion renewable energy
opportunities. A 250kW grid tie solar
photovoltaic (PV) system is proposed to be designed, installed and commissioned
on the rooftop of 8100 Warden
Avenue warehouse.
There is approximately 57,000 sq. ft. of roof top above the warehouse
that is available for the installation of a solar PV system.
In order to
accelerate project timelines to meet the deadline of the stimulus funding, the
Town will engage Carmanah Technologies in a design/build contract. Carmanah Technologies will supply, install,
and commission an operational, grid tied solar photovoltaic system. The solar system will be a maximum 250kWp as
defined by the FIT rules to ensure the Town of Markham will be eligible to receive
$0.713/kWh as payment for FIT solar production.
Annual revenue from the FIT
program is estimated to be $178,000.
This revenue will be directed to Life Cycle Reserve until the $736,972.67
that was originally withdrawn to supplement the project is paid off (in
approximately 5 years) Once the Life
Cycle Reserve is replenished, the annual revenue of $178,000 will be dealt with
based on a new policy on energy retrofit savings and renewable energy revenues. Any carbon credits generated by this system
will be the property of the Ontario Power Authority under the rules of the FIT program.
Construction of the system will start no later that September 1, 2010 and will
be complete for a “Commission On Date” of November 30, 2010.
Inverter Location
Outside
|
|
Figure #1 – Aerial view of the 8100
Warden Ave warehouse with the preliminary planned
areas for installation of photovoltaic solar panels.
The
evaluation team was comprised of staff from Asset Management Department,
Sustainability Office, Enviro-Energy Technologies and O.P. McCarthy &
Associates. The evaluation was based on
pre-established evaluation criteria as listed in the Request for Proposal: 45%
for cost performance, 20% for past experience of Contractor and Consultant
Team, 20% for Qualification for Project Team Members and 15% for Project
Delivery, with resulting scores as follows:
Prices
received from the four (4) bidders ranged from $1.47 million to $2.23 million.
Carmanah Technologies Corporation is the highest ranked and second
lowest priced proponent. Staff believes
that Carmanah Technologies Corporation has provided the best proposal to the
Town for executing this project.
Carmanah Technologies Corporation earned their selection by scoring more
points for their past experience in similar projects and by having a more qualified design
and project management team.
The following table is a summary of
the financial consideration of this report:
|
Original Budget and Account #
|
$1,125,515.00
|
056-5350-9517-005
|
|
Supplemental Budget and Account #
|
$1,400,000.00
|
056-5350-9540-005
|
|
Less Consultant Commitments to Date
|
$33,755.00
|
Enviro-Energy
Technologies
|
|
Less Project Management Commitment
to Date
|
$63,100.00
|
O.P. McCarthy & Associates
|
|
Budget Available for this Award
|
$2,428,660.00
|
|
|
Less Design/Build of PV Solar System
|
$1,592,640.67
|
Award to Carmanah Technologies for Design/Build
$1,565,095.00 plus $27,545.67 HST
|
|
Less Inspections & Permits
|
$20,352.00
|
$20,000.00 plus $352.00 HST
|
|
Less Contingency
|
$152,640.00
|
$150,000.00 plus $2,640.00 HST
|
|
Total Costs of Awards
|
$1,765,632.67
|
|
|
Budget Remaining
|
$ 663,027.33
|
|
Remaining
budget will be returned to the original funding sources upon payment of the
final invoice.
Not
applicable.
This project
would support “Building Markham’s Future Together” goals and in particular is
well aligned with the “Environment” area of strategic focus. Additionally, Markham is one of the very few Municipalities
to make an investment in Solar PV of this size, reinforcing the Town’s
leadership position in Ontario.
1)
Finance
2)
Sustainability Office
None
RECOMMENDED
COMMITTEE/COUNCIL ITEM TRACKING FORM
Revised: September 2009
DOES THE
REPORT, PRESENTATION, BY-LAW AFFECT OTHER DEPTS:
Yes No (List all departments impacted and
being consulted on this report.)
Finance Department
Electronic
Approval Required by:
Attachments:
None
Comments
& Questions: