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HomeMy WebLinkAboutFIN-2021-37 - T21-012 Dodge Drive Sanitary Trunk Sewer REPORT TO: Committee of the Whole DATE OF MEETING: 2021-06-28 SUBMITTED BY: Ryan Scott, Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY: Polina Semenov, Procurement Specialist, 519-741-2200 ext. 7037 WARD(S) INVOLVED: Ward 4 DATE OF REPORT: 2021-06-17 REPORT NO.: FIN-2021-37 SUBJECT: T21-012 Dodge Drive (New Dundee Road to Terminus) Sanitary Trunk Sewer RECOMMENDATION: That Tender T21-012 Dodge Drive (New Dundee Road to Terminus) Sanitary Trunk Sewer, be awarded to Earth Boring Co. Limited, Mississauga, Ontario, at their tendered price of $8,625,219.76, including provisional items and contingencies of $968,615.00, plus H.S.T. of $1,121,278.57, for a total of $9,746,498.33. REPORT HIGHLIGHTS: The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106; The work is to be funded by a developer through a Council-approved credit/refund agreement, and will be paid back by development charges starting in 2028; The total project costs (including design & construction costs) are approximately $3M higher than anticipated through the development charges bylaw; There were three (3) tenders received for this procurement; This report supports the delivery of core services. BACKGROUND: The City is proceeding with the construction of the Dodge Drive Trunk Sanitary Sewer. The total length of the work is approximately 1200m. The work includes the trenchless installation of a trunk sanitary main, local sanitary services, culvert replacements, and surface work reinstatement. The design and specifications for this project has been completed by MTE Consultants Inc., the construction administration and inspection of this project will be completed by City staff. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Full funding for this project has been approved by Council as part of a credit refund agreement and the funds have been received from the developer. The project is scheduled to begin July 19, 2021, weather permitting. REPORT: Tenders were advertised publicly on the City of Kitchener website. Documents were downloaded by thirty-nine (39) interested parties and by closing date of Thursday June 10, 2021, three (3) tenders had been received. The following tenders were received: Bid Price Earth Boring Co. Limited Mississauga ON $9,746,498.33 * Network Sewer and Watermain Ltd Cambridge ON $9,758,600.21 Brantford Engineering and Construction Limited Brantford ON $11,282,797.46 The tender was reviewed C. Goulet, Project Manager, Development Engineering, who concurs 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/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 and the upset limit is within the available funding (B) for the project. There is expected to be no surplus or deficit as the partner contributions have been calculated based on the known tender award amount. However, should costs exceed the estimate provided below, they will be covered by the developers as per the credit/refund agreement. Tender T21-012 Dodge Drive Trunk Sanitary Sewer Estimated Cost for this Phase of Work Tender T21-012 costs, including HST $ 9,746,498.33 less: HST rebate on tender (969,474.27) Net Cost Being Awarded 8,777,024.06 A Costs Incurred to Date 405,442.58 Projected Costs: Staff Time 220,238.00 Projected Costs: Material Testing 24,999.00 Total Estimated Cost for this Phase of Work $ 9,427,703.64 C Budget for this Phase of Work Developer Contribution 9,427,703.64 Total Budget for this Phase of Work $ 9,427,703.64 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) - D Estimated Surplus/(Deficit) from previous phases Total Estimated Surplus/(Deficit) $ - E The total estimated costs of the project are $9,427,704, compared to $6,524,000 which was included in the Development Charges bylaw. As noted earlier in the report, this project is subject to a credit/refund agreement. The developer who will be fully funding the work is aware of the revised costs of the project and has advised they would like to proceed with the project notwithstanding the fact it is well above the original cost-estimate. This higher project cost would be reflected in the development charges background study & bylaw which is in the process of being updated. COMMUNITY ENGAGEMENT: INFORM agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: DSD-19-275, Dodge Drive Trunk Sanitary Sewer and Road Restoration Credit/Refund Agreement Request, December 9, 2019 APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department