HomeMy WebLinkAboutFCS-17-035 - T17-005 Hugo Crescent and Lorne Avenue
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-02-27
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Adam Buchholtz, Buyer, 519-741-2200 ext.7217
WARD(S) INVOLVED: Ward 9
DATE OF REPORT: 2017-02-14
REPORT NO.: FCS-17-035
SUBJECT: T17-005 Hugo Crescent and Lorne Avenue Road
Reconstruction
___________________________________________________________________________
RECOMMENDATION:
That Tender T17-005 Hugo Crescent and Lorne Avenue Road Reconstruction be
awarded to Bel-Air Excavating & Grading Ltd., Cambridge, Ontario, at their
corrected tendered price of $4,254,005.83, including provisional items and
contingencies of $353,480., plus H.S.T. of $553,020.76, for a total of $4,807,026.59.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Hugo Crescent and Lorne
Avenue. Funds for construction have been approved by Council as part of the 2017
budget. The services were originally constructed in the 1950’s and are in need of
replacement.
The administration, design and tendering of this project has been completed by City
staff, the construction administration and inspection of this project will be completed by
a consultant.
Full funding for this project has been approved by council as part of the 2017 budget
process. A deficit is projected in the project due to higher than anticipated pricing which
may be a result of bidders’ assessment of complexity and risk related to unique site
conditions, which will require the contractor to maintain access to a school and
retirement residence during construction through the construction of a temporary access
road as well as constructing deep services within narrow easements..
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REPORT:
Tenders were advertised publicly in the Daily Commercial News, on the City of
Kitchener website and the internet through the Ontario Public Buyers Electronic
Tendering Information System. Documents were downloaded by thirty (30) interested
parties and by the closing date of Thursday February 9, 2017, four (4) tenders had been
received.
The tenders were reviewed by J. Seip, Engineering Technologist, K. Mick, Design &
Approvals Engineer and Adam Buchholtz, Buyer, who concur with the above
recommendation.
The following tenders were received:
Corrected
Bid Price Bid Price
Bel-Air Excavating
& Grading Ltd. Cambridge ON $4,807,026.58 $4,807,026.59*
J.Weber Contracting Ltd. Breslau ON $5,086,288.20 $5,086,289.10
Sierra Infrastructure Inc. Woodstock ON $5,460,000.00 $5,232,534.66
Terracon Underground Brantford ON $5,589,851.75 $5,589,648.35
Tender documents were checked for mathematical errors and corrected accordingly.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
In addition to the costs anticipated in this tender, the design and implementation of
these types of projects typically involves city staff and resources from across the
corporation. These costs are included in the line item "Projected Costs: Staff
Time/Permitting/Material testing", and will be itemized when they exceed $125,000.
Included in this line item are staff time and expenses for all city staff in support of the
project such as Engineering, Kitchener Utilities, and Transportation Planning. The line
item also includes all regulatory permitting, geotechnical and material testing, detouring
and traffic control, alternate access and parking requirements and any other
miscellaneous costs. Projects utilizing in-house staff will include costs for inspection
during construction and contract administration.
The net cost for this tender (A), is fair and reasonable for a purchase of this scope but
the upset limit exceeds the budget allowance (B) provided within the budget. Additional
funding for this purchase is provided by the existing surplus balance in the account.
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The deficit (E) will be funded from the Accelerated Infrastructure Replacement Program
general account. There are sufficient funds in the account to fund the deficit.
Tender T17-005
Hugo, Lorne
The total budget for all phases of this project is 4,585,296.00
Estimated Cost for this Phase of Work
Tender T17-005 costs, including HST 4,807,026.59
less: HST rebate on tender (478,150.04)
Net Cost Being Awarded 4,328,876.55 A
Costs Incurred to Date
Projected Costs: Staff Time/Permitting/Material Testing 48,923.00
Total Estimated Cost for this Phase of Work $4,377,799.55 C
Budget for this Phase of Work
AIRP - Sanitary Utility 813,362.00
AIRP - Storm Water Utility 407,181.00
AIRP - Water Utility 547,984.00
Grant – CWWF (Clean Water and Wastewater Fund) 2,285,773.00
Total Budget for this Phase of Work $4,054,300.00 B
Estimated (Deficit) for this Phase of Work (B - C) (323,499.55)D
Estimated Surplus from previous phases 92,851.95
Total Estimated (Deficit) $(230,647.60)E
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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