HomeMy WebLinkAboutFIN-19-055 - T19-073 David Bergey Drive (Ottawa Street to Activa Avenue) Sanitary Sewer Replacement and RestorationREPORT TO:Committee of the Whole
DATE OF MEETING:2019-06-24
SUBMITTED BY:Margaret Fisher,Director of Procurement,519-741-2200 ext. 7214
PREPARED BY:Polina Semenov, ProcurementSpecialist,519-741-2200 ext. 7037
WARD (S) INVOLVED:Ward5
DATE OF REPORT:2019-06-10
REPORT NO.:FIN-19-055
SUBJECT:T19-073David Bergey Drive (Ottawa Street South to Activa Avenue)
Sanitary Sewer Replacement and Restoration
__________________________________________________________________________________________
RECOMMENDATION:
That Tender T19-073 David Bergey Drive (Ottawa Street South to Activa Avenue) Sanitary
Sewer Replacement and Restoration, be awarded to Regional Sewer and Watermain Ltd.,
Cambridge, Ontario, at theirtendered price of $2,969,170.50,including provisional items
and contingencies of $327,820.,plus H.S.T. of $385,992.17, for a total of $3,355,162.67.
BACKGROUND:
Engineering is proceeding with David Beregy Drive (Ottawa Street South to Activa Avenue)
Sanitary Sewer Replacement and Restoration. The project scope is the removal of the existing
375millimetre and450millimetrediameter sanitary sewersalong David Bergey Drive from
Ottawa Street South to Activa Avenue and replace with a new 600millimetrediameter sanitary
sewersup to 8.0metres deep.
While the tendered cost is significantly over the estimated cost Engineering would justify
proceeding on the following basis:
Ώ There is currently a Council approved Credit for Service Agreement in place with Activa
Group for the construction of the Ottawa Trussler Sanitary Pumping Station that will be
going to tender shortly.In order for the pumping station to come on line and service a
built-out Stage 1 of the Ottawa Trussler Subdivision, the David Bergey sanitary sewer
needs to be upgraded from existing conditions or surcharging of the sewers will occur;
Ώ This was a competitive tender process with six (6) bids received from reputable
contractors;
Ώ The low bid received is a fair price based on the scope of work and re-tendering would
likely result in a higher price;
Ώ In order for the works to proceed at the intersection of David Bergey Drive an Activa
Avenue, Activa Avenue will need to be closed to traffic for approximately 10 working days.
The two nearby schools, W.T.Townshend Public School and John Sweeney Catholic
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
1.iii - 1
School, use Activa Avenue for school bus routes and the optimal time of year to shut
down the intersection is during the months of July and August.
The project is scheduled to begin July 15,2019.
REPORT:
Tenders were advertised publiclyonthe City of Kitchener website. Documents were
downloaded by twenty-eight(28) interested parties and by the closing date of Monday, June 3,
2019,six(6) tenders had been received.
The following tenders were received:
Bid Price
Regional Sewer and Watermain Ltd Cambridge ON $3,355,162.67*
Bel-Air Excavating & Grading Ltd. Cambridge ON $3,981,317.71
Navacon Construction Inc. Brantford ON $3,982,591.27
Sierra Infrastructure Inc Woodstock ON $4,059,210.05
Capital Paving Inc Guelph ON $4,519,011.17
Network Sewer and Watermain Ltd Cambridge ON $5,276,805.48
The tenders were reviewed by C. Argueta, AECOMN.
Melanson,Engineering Technologistwho concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
1.iii - 2
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 $125,000. Included in this line item are staff time and expenses for
all city staff in support of the project such as Engineering, Kitchener Utilities, and Transportation
Planning. The line item also includes all regulatory permitting, geotechnical and material testing,
detouring and traffic control, alternate access and parking requirements and any other
miscellaneous costs. Projects utilizing in-house staff will include costs for inspection during
construction and contract administration.
The net cost for this tender (A), is fair and reasonable for a purchase of this scope but the upset
limit exceeds the budget allowance (B) provided within the budget. Funding for this purchase is
included within the approved capital forecast. The estimated deficit (D) will be funded from the
development charge reserve.
Tender 19-073
David Bergey Drive Sanitary Sewer Upgrade
Estimated Cost for this Work
Tender T19-073 costs, including HST$ 3,355,162.67
less: HST rebate on tender(333,734.62)
Net Cost Being Awarded$ 3,021,428.05 A
Projected Costs: Staff Time 232,739.00
Projected Costs: Material Testing 10,000.00
ProjectedCosts: Detouring3,000.00
Projected Costs: Permitting 1,100.00
Projected Costs: Contingency 24,684.00
Total Estimated Cost for this Phase of Work$ 3,292,951.05 C
Budget for thisWork
City Share of Subdivisions$ 1,900,000.00
Total Budget for this Work$ 1,900,000.00 B
Estimated Surplus/(Deficit) for this Work (B -C)$ (1,392,951.05)D
1.iii - 3
COMMUNITY ENGAGEMENT:
INFORM This report
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
1.iii - 4