SPECIAL COUNCIL MEETING AGENDA THURSDAY, MAY 2, 2019 at 6:15 P.M

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SPECIAL COUNCIL MEETING AGENDA THURSDAY, MAY 2, 2019 at 6:15 P.M DISTRICT OF HOUSTON SPECIAL COUNCIL MEETING AGENDA THURSDAY, MAY 2, 2019 at 6:15 p.m. District of Houston Council Chambers, 3367 12th Street, Houston BC V0J 1Z0 Page A. CALL MEETING TO ORDER B. ACCEPTANCE OF ADDENDUM B.1 Adoption of Agenda "That Council considers and resolves to adopt the agenda for the Special Council Meeting of May 2, 2019 as presented/amended." 4 - 22 B.2 Late Items 1) UBCM Asset Management Planning Staff Report 2) Ammonia Refrigeration Plant Tender Staff Report "That Council considers and resolves to amend the agenda to add the late items "UBCM Asset Management Planning Program" and "Ammonia Refrigeration Plant Tender" and that the agenda be reordered accordingly." C. ADOPTION OF MINUTES 23 - 25 C.1 Committee of the Whole Meeting held April 9, 2019 "That Council considers and resolves to adopt the minutes of the Committee of the Whole meeting held on April 9, 2019, as presented/amended." 26 - 28 C.2 Special Meeting of Council held April 9, 2019 "That Council considers and resolves to adopt the minutes of the Special Meeting of Council held on April 9, 2019, as presented/amended." 29 - 32 C.3 Finance Committee Meeting held April 10, 2019 "That Council considers and resolves to adopt the minutes of the Finance Committee Meeting held on April 10, 2019, as presented/amended." 33 - 41 C.4 Regular Meeting of Council held April 16, 2019 "That Council considers and resolves to adopt the minutes from the Regular Meeting of Council held on April 16, 2019 as presented/amended." D. CHIEF ADMINISTRATIVE OFFICER'S REPORTS 42 - 47 D.1 Dungate Board Meeting "That Council resolves to receive the staff report titled “Dungate Community Forest Partnership Meeting” and dated April 29, 2019 for discussion with the Houston Community Forest Inc. Board of Directors." "That Council resolves to define Working Capital for the Dungate Community Forest Limited Partnership as $1.4 Million consisting of cash, investments, and accounts receivable." D.2 Claude Parish Memorial Arena Refrigeration Plant Replacement - RFP Award *Information to be provided at the meeting. "That Council considers and resolves to award the contract for RFP No. 2019-04 “Claude Page 1 of 76 Parish Refrigeration Plant Upgrade” to DevCon Industrial Service Ltd. O/A Yeti Refrigeration at the tendered price of $815,059.75 plus applicable taxes pending the execution of a contract with the proponent; And further, that Council considers and resolves to authorize the Mayor and Chief Administrative Officer to negotiate and execute the contract for RFP 2019-04; And further, that the Chief Administrative Officer be directed to prepare amendments to the 2019-2023 Financial Plan to increase the project budget for the Ammonia Refrigeration Plant Replacement Project by $150,000." 48 - 55 D.3 Farmers Market Lease "That Council resolves to dispose of its interests in the lands legally described as Lot 1, District Lot 622, Range 05, Coast Range 5 Land District PID #023-962-836 by leasing the said lands to Houston Link to Learning for a term commencing on June 1, 2019 and expiring on September 30, 2019 in consideration of $1.00." 56 - 60 D.4 Community Planning for Housing Program "That Council considers and resolves to authorize staff to submit a joint application with the Village of Telkwa to the Northern Development Initiative Trust Community Housing for Planning Program; And further, that the District contribute $5,000 plus 50% of any overhead costs for a one- year term of planning services from contract services allocated in the financial plan, not to exceed $12,500." E. BYLAWS 61 - 65 E.1 Five Year Financial Plan "That Council resolves to adopt Bylaw No.1116 Five Year Financial Plan this 2nd day of May 2019." 66 - 68 E.2 Water Parcel Tax Bylaw "That Council resolves to adopt Bylaw No.1117 Water Parcel Tax this 2nd day of May 2019." 69 - 71 E.3 Sewer Parcel Tax Bylaw "That Council resolves to adopt Bylaw No.1118 Sewer Parcel Tax this 2nd day of May 2019." 72 - 73 E.4 Property Tax Rates "That Council resolves to adopt Bylaw No.1119 Property Tax Rates this 2nd day of May 2019." F. CORRESPONDENCE 74 - 75 F.1 2019-04-18 Letter - Hon. John Horgan Premier re City of Abbotsford Resolution - Criminal Justice Reform in British Columbia 76 F.2 Morice Mountain Nordic Ski Club - Letter of Support Request "That Council considers and resolves to write a letter of support for the Morice Mountain Nordic Ski Club's application to the Northern Development Initiative Trust Community Halls and Recreation Facility Program." G. RESOLVE INTO COMMITTEE OF THE WHOLE G.1 None. H. RISE AND REPORT Page 2 of 76 H.1 None. I. ADJOURNMENT I.1 Adjourn Meeting "That Council considers and resolves to adjourn the Special Council Meeting of May 2, 2019, the time being ..." Page 3 of 76 DISTRICT OF HOUSTON STAFF REPORT MANAGER OF LEISURE SERVICES File 0550-20 cc. 1220-2019-1800 DATE: May 2, 2019 TO: Gerald Pinchbeck, Chief Administrative Officer FROM: Tasha Kelly, Manager of Leisure Services SUBJECT: Claude Parish Memorial Arena Refrigeration Plant Replacement Project SUMMARY Staff are seeking Council’s direction with regard to awarding the tender for the Claude Parish Memorial Arena Refrigeration Plant Replacement Project. BACKGROUND At the October 2, 2018 Regular Meeting, Council considered a report from staff regarding three tenders received for the construction of a new Ammonia Refrigeration Plant at the Claude Parish Memorial Arena (Attachment 1). The tenders received at that time were as follows: 1. Tender 1 – Ammonia Plant – $1,244,230 2. Tender 2 – Ammonia Plant – $ 789,572 3. Tender 3 – CO2 Plant – $ 952,876 Council approved a staff recommendation to not award the contract and authorized a redesign process to reduce the project costs and total ammonia charge. This resulted in the current system being operated over the 2018/19 ice season. During the budgetary process, Council approved an increase in the capital budget for this project of $100,000, bringing the 2019 capital budget to $816,072. Council further approved an application to Northern Development Initiative Trust for $250,000 to support the project, which has been approved. A further, $90,000 from Dungate Community Forest’s grant program is expected to support the project, with the remainder being funded by Gas Tax Funds. To date, $35,025 has been spent to install an ammonia stack mandated by a WorkSafe BC compliance order, which will be used as part of the new refrigeration plant. This leaves a total project budget of $781,046 remaining in the project budget. Following the redesign, the arena specifications were released to tender in early April. Arena refrigeration plant tenders closed on April 30, 2019. At the time of closing, only one proposal was received. DevCon Industrial Service Ltd. O/A Yeti Refrigeration submitted a qualified proposal of $815,059.75 excluding applicable taxes. Page 4 of 76 DATE: May 2, 2019 SUBJECT: Claude Parish Memorial Arena Refrigeration Plant Replacement Project PAGE: 2 of 4 DISCUSSION Staff remain committed to installing a safer operating refrigeration plant with a lower ammonia charge. As the market is flooded with older arena refrigeration plants requiring upgrades, contract prices continue to rise due to the demand, as reflected by these higher tender prices. The current arena refrigeration plant is deemed safe by WorkSafe BC; however, it is working on borrowed time and is becoming harder and more expensive to maintain. Continued operation will increase the risk of a system failure and ammonia leak, particularly as components deteriorate further. This is detailed in a report commissioned by the District in 2017 on the condition of the Refrigeration System, which recommended replacing the existing system as soon as possible (Attachment 2). In addition to the significant public and workplace safety benefits of replacing the project, there are several other long-term benefits, including decreased operational costs, increased energy efficiency, and a reduced environmental footprint. Mr. Ian Wells, the project engineer retained via Accent Refrigeration, will be present at tonight’s Council meeting to speak to the technical aspects of the plant. The primary difference between the first and second tender were that the first tender included the costs of constructing the plant room expansion, whereas the second tender did not. Staff estimate that the costs of constructing a new plant room will be $100,000 in addition to the costs for the refrigeration system. If the current tender is selected, total project costs would be $945,072. This would therefore require a budget amendment to account for the additional $150,000 of capital costs or a reduction in the budget for other capital projects. Description Amount Project Budget $816,072 Plant Room Stack ($ 35,025) Plant Replacement ($815,060) Room Replacement ($100,000) Surplus (Shortfall) ($134,013) Requested Adjustment $150,000 Contingency $ 15,987 If Council chooses to proceed with the project as tendered, staff have identified the following financing sources to fund the requested $150,000 for the project: 1. Northern Capital & Planning Grant – $370,553 unallocated 2. Gas Tax Community Works Funding – $642,845 unallocated 3. Dungate Community Forest 2018 Dividend – $434,703 unallocated The Northern Capital & Planning Grant Funding would be most suitable for this project, given that there is no further constraint on unallocated funds from this grant. Although funding is available from the Gas Tax Fund for this project, future spending plans for gas tax funds will restrict cash flow going forward. By 2021, the Gas Tax Funding source will consist of $523,074 in deferred revenue, $189,548 in projected revenue, and $620,000 in planned spending, thereby limiting the cash available from this fund mid-project.
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