HomeMy WebLinkAboutFIN-21-002 - T20-177 Old Mill Sanitary Pumping StationREPORT TO:Committee of the Whole
DATE OF MEETING:2021-01-25
SUBMITTED BY:Ryan Scott, Manager of Procurement,519-741-2200 ext. 7214
PREPARED BY:Polina Semenov,Procurement Specialist,519-741-2200ext. 7037
WARD(S) INVOLVED:Ward4
DATE OF REPORT:2021-01-08
REPORT NO.:FIN-21-002
SUBJECT:T20-177 Old Mill Sanitary Pumping Station
RECOMMENDATION:
That Tender T20-177 Old Mill Sanitary Pumping Station,be awarded to Stone Town
Construction Limited, St. Marys, Ontario, at their tendered price of $9,695,090.39,
including contingencies and cash allowance of $950,000.00, plus H.S.T. of
$1,260,361.75, for a total of $10,955,452.14.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with an award asper
Purchasing By-law 2017-106;
The reason this report is coming forward is that the value of the bid being recommended
for award is in excess of the Council approved budget;
There were eight(8)tendersreceived for this procurement;
This report supports the delivery of core services.
BACKGROUND:
The Old Mill Sanitary Pumping Station was constructed in 1969 and services an area
approximately 161 ha in size. The two submersible pumps at the pumping station havea
combined capacity of 41.8 L/s, which is much less than the expected peak flow undercurrent
zoning. Through a number of studies, the City confirmedthatthis pumping station requires
upgrades in order to accommodate further developmentwithin the Service Area, including
planned buildout of the Conestoga College DoonCampus.
The work includes the replacement of the existing sanitary sewer, storm sewer, water supply
system, roadway, curb and gutter, sidewalks and municipal service connections to the street
property line, construction of new sanitary pumping station, and demolition of existing
sanitary pumping station.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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Construction is tentatively scheduled to start March 2021 with 340 working days.
REPORT:
As per clause 170.7.3 of the Purchasing By-law 2017-
Procurement Value, the Manager of Procurement shall submit a report to Council
recommending award of a purchase greater than $100,000 if any one or more of the
following conditions apply:
a.the value of the Bid being recommended for award including any
contingency allowance are in excess of the Council approved budget;
Tenderswereadvertised publicly on the City of Kitchener website. Documents were
downloaded by ninety-four (94) interested parties and by closing date of Friday December
18, 2020, eight (8) tenders had been received.
The following tenders were received:
Bid Price
Stone Town ConstructionLimitedSt. MarysON$10,955,452.14*
BGL Contractors Corp WaterlooON$11,101,911.00
Baseline Constructors Inc. WaterlooON$11,674,030.00
Finnbilt General ContractingLimitedStratfordON$11,942,508.99
Jeviso Construction Corporation ConcordON$12,247,747.95
ASCO Construction (Toronto)Ltd.MississaugaON$12,988,586.12
TorbearContracting Inc.Woodbridge ON$14,106,073.63
Sona Construction Limited HamiltonON$14,457,153.33
project and L. Cooper, Manager, Development Engineering, who concur with the above
recommendation.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
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/Material testing", and
will be itemized when they exceed $125,000. Included in this line item are staff time and
expenses for all city staff in support of the project such as Engineering and Kitchener
Utilities. The line item also includes geotechnical and material testing as well as any other
miscellaneous costs. Projects utilizing in-house staff will include costs for inspection during
construction and contract administration.
The net cost for this tender (A), is fair and reasonable for a purchase of this scope but the
upset limit exceeds the budget allowance (B) provided within the budget. Funding for this
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purchase is included within the approved capital forecast. The estimated deficit (E) will be
funded from the Development Charges reserve and Sanitary Utility Capital reserve. There
are sufficient funds in both reserves to fund their portion of the deficit.
Tender T20-177
Old Mill Sewage Pumping Station
Estimated Cost for this Work
Tender T20-177 costs, including HST10,955,452.14
less: HST rebate on tender(1,089,727.68)
Net Cost Being Awarded$ 9,865,724.46
A
Projected Costs: Staff Time/Material Testing/Contingency 119,458.35
Total Estimated Cost for this Phase of Work$ 9,985,182.81
C
Budget for this Work
Development Charges4,266,000.00
Sanitary Utility5,248,000.00
Total Budget for this Work$ 9,514,000.00
B
Estimated Surplus/(Deficit) for this Work (B -C)(471,182.81)
D
Estimated Surplus/(Deficit) from previous phases38,045.43
Total Estimated Surplus/(Deficit) $ (433,137.38)
E
Deficit to be recovered from:
Development Charges Reserve $ (194,911.82)
Sanitary Utility Capital Reserve $ (238,225.56)
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authoritiesrelated to this matter.
APPROVEDBY:Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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