2020-001-ASB - Assessment Model Update – Liquid Propane Gas Vessel

Regulated property includes Farmland, Machinery and Equipment, and Linear property types. Regulated industrial property is assessed using the Minister's Guidelines for Regulated Property, which lists the assessment process and rates. The base rates and the assessment year modifiers (AYM) are based on modified replacement cost models developed in conjunction with contract construction cost professionals. The Ministry conducts periodic reviews of the base rates as part of the province's commitment to stakeholders to maintain a fair and equitable system of property assessment in Alberta. Between these periodic reviews, the rates are updated using an AYM.

The assessment model review for Machinery and Equipment Light – Oilfield Services (M&E Light) in 2019 produced rates, which included LPG tanks; however, the technical working group raised concerns regarding the LPG rates and configurations included in part 2.010.720 of the Ministers Guidelines. The technical working group felt the contractors had overvalued LPG tanks and included more controls on the tanks than was typically found in the field. A review of relevant tanks indicated many LPG tanks are available off the shelf and the technical working group’s concerns were valid. The tank rates were subsequently adjusted by the contractor; however, the rates were still considered too high.

The purpose of this proposed contract is to find a vendor who will address the technical working group’s concerns and provide updated rates and configurations for the skidded LPG horizontal storage vessels (2.010.720) as shown in the 2019 Alberta Machinery & Equipment Assessment Minister’s Guidelines.