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Community Services Department www.kitchener.ca
REPORT TO:
DATE OF MEETING
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
Mayor Zehr and Members of Council
September 30, 2013
Kim Kugler, Director of Enterprise, 519 - 741 -2200 Ext 7544
Kim Kugler, Director of Enterprise, 519 - 741 -2200 Ext 7544
Ward 10
September 27, 2013
CSD -13 -100
CHILLER REPLACEMENT KIWANIS ARENA
That the requirement under Chapter 170 of the Municipal Code (Purchasing) for formal
quotations be waived with respect to replacing a chiller located in the Kiwanis Arena;
and further,
That staff be directed to obtain 3 informal quotes to be able to award the contract for the
chiller based on price and the ability to install the chiller by October 18, 2013; further,
That capital funds within the Aud /Arena capital budgets be reallocated between two
projects budgeted in 2013 and 2014; the 2013 Kinsmen compressor project and the 2014
twin pad chiller replacement.
BACKGROUND:
A preventative maintenance program is in place for all the refrigeration equipment including the
chiller; to maintain and preserve the equipment. The chiller in Kiwanis was scheduled for a
lifecycle replacement in 2014 and was identified as a 2014 project within the Aud /Arena 10 year
capital budget forecast.
REPORT:
Deterioration of the existing chiller was noticed on September 25, 2013 during a routine
maintenance inspection of the refrigeration equipment in the Kiwanis Arena. The level of
deterioration identified is beyond any option for repair and a full replacement of the current
chiller is necessary.
There is an extremely tight timeline to source, purchase and install the chiller before the ice
installation starts on October 19, 2013. The contract for the chiller for Kiwanis needs to be
awarded by end of day Tuesday to allow the supplier to be able to source and or manufacture a
chiller for installation by October 18, 2013 so that the ice installation can occur the following day.
If there is no ice in Kiwanis on Friday, October 25 when the KMHA Oktoberfest Tournament is
scheduled to start the tournament then games would have to be cancelled. The financial impact
on the ice cancellations to the City would be $2,000 per day plus the loss of ancillary dollars
from the purchases of the visiting participants. Any ice cancellation would also have a negative
impact on the reputation of the Oktoberfest Tournament Committee and the City for not being
able to provide enough ice to operate the tournament.
Under normal circumstances staff would follow the proper purchasing procedures of obtaining
formal quotations but due to the tight timeline to award a contract for installation of a chiller in
time for the upcoming ice season staff request permission to obtain three informal quotes and
award a contract to a supplier by end of day Tuesday, October 1, 2013.
FINANCIAL IMPLICATIONS:
Staff anticipate the cost of the chiller to be in the range of $70,000 to $102,000 with HST. The
price range is due to costs that could be in addition to the base cost to cover either sourcing
costs or premiums for a special manufacturing request.
Currently there are capital funds allocated in 2013 for a compressor replacement in Kinsmen
that was not completed this year and there are funds a chiller replacement in Kiwanis in 2014.
The funds for these two projects are similar and the funds could be reallocated to the years the
projects will occur with no additional impact on operating or capital.
COMMUNITY ENGAGEMENT:
Not applicable at this time
ACKNOWLEDGED BY: Michael May, Deputy CAO, Community Services