Cogeneration Facility at Humber Treatment Plant
Additional Expenditures for Extra Work -
Contract No. WPC-11-97
The Works Committee recommends the adoption of the following report (June 30, 1999) from the Commissioner of
Works and Emergency Services:
Purpose:
To obtain Council authorization to negotiate and authorize additional expenditures for the performance of necessary
additional work on Contract No. WPC-11-97 for the construction of the Cogeneration Facility at the Humber Treatment
Plant.
Funding Sources:
Funds are available in the approved 1999-2003 Water and Wastewater Services Division Capital Account C-WP115,
Humber Treatment Plant.
Recommendations:
It is recommended that:
(1)additional expenditures in the amount of $196,000.00 including Goods and Services Tax be authorized for the
performance of necessary additional work on Contract No. WPC-11-97 for the construction of the Cogeneration Facility at
the Humber Treatment Plant, in accordance with the estimates listed in Appendix A attached; and
(2)the appropriate City officials be authorized to take the necessary action to give effect thereto.
Background:
By adoption of Clause No. 3 of Report No. 4 of The Works and Utilities Committee, City Council, at its meeting of May
13, 1998, awarded Contract No. WPC-11-97 for the construction of the Cogeneration Facility at the Humber Treatment
Plant. The contract was awarded to Comstock Canada Ltd. for the total lump sum tender price of $16,798,000.00 including
GST and a Schedule of Prices allowance of $22,860.00 for additional work if required. The order to commence work was
dated July 14, 1998, at which time the contract work began.
At the time of award, in accordance with former Metro By-law No. 146-90, as amended, a Department Head had authority
to approve additional expenditures on a commitment in accordance with the by-law up to an amount equal to ten percent of
the commitment. As such, under the former Metro by-law a further $1,679,800.00 or ten percent of the awarded contract
amount would have been available for required extra work.
At its meeting of January 6, 1998, City of Toronto Council enacted By-law No. 7-1998, Interim Financial Control By-law,
which repealed former Metro By-law No. 146-90. As the new by-law contains no provision to exceed the awarded contract
value, as confirmed by the City's Legal Division, the Department has effectively lost its ability to authorize the unforeseen
and necessary additional work that may arise during construction of capital projects. This is particularly problematic when
construction is tendered on a firm, lump sum basis. For contracts recently tendered, since confirmation of the repeal of
former Metro By-law No. 146-90, we have been providing, on an interim basis, a general contingency allowance for
possible extra work into the Schedule of Prices for Alterations, Extras, and Deductions for incorporation into the total lump
sum tender price. In the case of Contract No. WPC-11-97, however, no such general contingency was added, as we
believed it was still available through former Metro By-law No. 146-90.
Comments and Justification:
At its meeting of April 13, 14 and 15, 1999, City of Toronto Council adopted Clause No. 10 of Report No. 4 of The Works
and Utilities Committee authorizing an additional expenditure in the amount of $140,000.00, including Goods and Services
Tax, for the performance of necessary additional work on Contract No. WPC-11-97.
Since the last request to City Council for authorization of additional expenditures for Contract No. WPC-11-97, more
recent issues have been identified as requiring the performance of extra work. In some cases, additional information and
unexpected circumstances have arisen during construction, which have necessitated changes to the original tendered scope
of work. To ensure continuity with respect to liability and warranty issues under the contract, these changes must be
implemented by the issuance of extra work orders. For example, a centralized electrical power consumption monitoring
system, which was installed under another ongoing contract at the Humber Treatment Plant, is currently being activated. It
would be most economical and expedient to also incorporate the Cogeneration Facility, Contract No. WPC-11-97, into the
programming of the centralized electrical power monitoring system at this time. In other cases, staff of the Department
and/or our consultants have identified changes to the design of the original contract which are now advisable to be
performed to conform to changed regulatory code requirements or operating procedures, and which should be implemented
to ensure construction of the best possible finished product; for instance, the requirement by Ontario Hydro for electrical
grounding of existing equipment in plant buildings where new plant systems are proposed to negate electrical hazards.
The total value of the estimated extra work required to date as a percentage of the overall value of the contract is equivalent
to 2.0 percent.
Conclusion:
The additional expenditures for extra work in the amount of $196,000.00 including GST are summarized in Appendix A
attached. This additional work is necessary to either meet regulatory code requirements and/or ensure construction of the
best possible product.
Contact Name and Telephone Number:
M. Barbon, P.Eng.
Senior Project Engineer
Engineering Services-Works Facilities & Structures
Technical Services Division
Telephone No. (416) 392-8854
APPENDIX A
HUMBER TREATMENT PLANT
WPC-11-97 COGENERATION FACILITY
REQUEST FOR AUTHORIZATION OF ADDITIONAL EXPENDITURES
ItemAuthorized
No.DescriptionTermsAmount
1Additional 115V wiring for power supply and control for eight newestimated$7,000.00
electrical heaters in Engine Room purchased by Plant
2Modification to Engine Room east wall to allow access to electricalestimated$12,000.00
panel and provide new access cover for crane disconnect switch
3Extend height of canopy wall shielding inlets for air handling unitsestimated$20,000.00
running along east and west walls of Engine Room to provide drainage
from canopy roof to main Engine Room roof
4Supply and install stainless steel structural supports for precast concreteestimated$6,000.00
floor slabs over influent channel in Head House. Support corbel was not
originally constructed due to interference of original engine exhaust
stacks
5Supply and install wiring for both bearings and remote thermal devicesestimated$9,000.00
on each of two gas compressors required for monitoring operation and
efficiency of gas compressors
6Supply and install control wiring and selector switches from main gasestimated$4,000.00
control valves to main control room in order to provide computer
control by operators as requested by Plant
7Supply and install pipe supports for 200 mm hot water pipingestimated$10,000.00
recirculation system adjacent to pumps as required by pump
manufacturer
8Upgrade hot water circulating pumps and drives from 60 HP to 100HPestimated$70,000.00
for 3 pumps to ensure adequate heat supply to existing digester Nos.
1-6, sludge thickening building and primary scum tanks Nos. 1 and 2
9Install steel stud framing to support acoustical wall panels in Engineestimated$10,000.00
Room at applicable column to avoid conflicts with existing fresh air
ventilation ducts feeding Administration area
10Upgrade passage - type (non-locking) door hardware for workshopestimated$2,000.00
doors to locking type for security purposes, as required by Plant
11Programming changes to the Plant electrical power distribution systemestimated$15,000.00
to include cogen project for the purpose of centralized monitoring of the
Plant power consumption
12Provide electrical grounding to existing systems required by Ontarioestimated$16,000.00
Hydro to meet current code requirements to negate electrical hazards
13Supply and install hot water control valves required for efficient andestimated$12,000.00
effective operation of heat exchanger KU-509 and hot water cooler
HWC-1
14HVAC low limit switch to air handling unit to allow access forestimated$3,000.00
maintenance purposes, as requested by Plant
TOTAL$196,000.00
