HomeMy WebLinkAboutINS-10-007 - Homer Watson PS - Contract T10-094 Contract AwardREPORT TO:Community & Infrastructure Services Committee
DATE OF MEETING:
December 13, 2010
SUBMITTED BY: K. Grant Murphy, P.Eng., Director of Engineering Services
519-741-2410
PREPARED BY:
Muhammad Memon, P.Eng., Design & Construction
Engineer (519-741-2419)
Binu J. Korah, P.Eng., Manager of Development
Engineering (519-741-2974)
WARD(S) INVOLVED:
4
DATE OF REPORT:
December 2, 2010
REPORT NO.:
INS 10-007
SUBJECT:
Homer Watson Pumping Station Tender Award and Project
Status Update – Tender # T10-094
RECOMMENDATION:
That tender T10-094, Homer Watson Pumping Station Upgrade, be awarded to H.I.R.A.
Limited, St. Thomas, Ontario at their tendered price of $7,362,000 plus H.S.T. of $957,060., for
a total of $8,319,060; and further
That $4,525,000be allocated from the Development Charges Reserve and Sanitary Sewer
funding to the Homer Watson Pumping Station Upgrade project account based on the 70/30
split established in the Development Charge Background studies.
BACKGROUND:
The City of Kitchener is responsible for operating and maintaining the sanitary sewer networks
and pumping stations within its boundaries. The Doon South Sanitary Pumping Station and
Forcemain Class Environmental Assessment (Class EA) Study ( July 2009) identified the need
to upgrade the Homer Watson Pumping Station in order to provide wastewater servicing for the
Doon South Community Plan area and the surrounding lands. This project was included in the
2009 Development Charges Background Study.
In February 2010, the City retained Associated Engineering consultants to complete the detailed
design of the preferred solution as recommended in the Doon South Pumping station and
Forcemain Environmental Study Report (ESR). This project involves pump upgrades, washroom
facilities and the construction of one-hour emergency storage tank in accordance with City’s
engineering standards, Refer attached layout Map, Appendix A. The detailed design was
completed in July 2010 by Associated Engineering and the project was tendered by the City in
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August 2010 and closed on September 2, 2010. The tender bids received by the City were
significantly higher than the budgeted amount and for the City to proceed with the tender award
additional funds would be required from the Development Charges Reserve.
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REPORT:
The Homer Watson Pumping Station project was identified in the 2009 Development Charges
Background Study. In September 2010, the tender bids received by the City were significantly
higher than this budgeted amount, with the lowest bid being $7,362,000.
The following are the major changes from the original ESR project scope and its impact on the
overall cost:
Storage Tank Construction Details – As part of the Detailed Design the City completed
a detailed geotechnical Investigation and found that secant pile wall methodology
should be used instead of sheet piling due to the presence of boulders/cobbles, dense
sand till soils and high artesian groundwater.
Constructions in Flood Plain and to meet GRCA requirements – Most of the lands for
the Homer Watson Pumping Station are located within the flood plain. In accordance
with the approved ESR for this project, a storage tank has to be installed underground
within the flood plain due to the property constraints. However, one of the main
requirements for this project is that the contractor should not store any materials within
the flood plain due to any possible flooding. Therefore contractor is required to store all
excavated and construction materials off-site and transport it to site on an as needed
basis. This double-handling of material is a major constraint to the Contractor and
resulted in additional cost.
Water service connection: The Site Plan approval process recommended installation of
a fire hydrant at the site to provide appropriate fire protection. This added fire protection
requires a larger watermain to provide fire flow capacity at additional cost.
Electrical Equipment Upgrade: During the detailed design, the evaluation of electrical
equipment was completed and it was identified that the existing equipments were
approaching the end of its useful life and had to be replaced in order to upgrade this
station and to meet the current standards.
Storage Tank HVAC Upgrades: - During pre-design, the need for adequate ventilation to
allow safe confined space entry by the operator was identified at additional cost. The
added ventilation fans required special architectural screening to maintain the heritage
appearance and to meet site and heritage planning approval. The additional fans and
screening were provided at additional cost.
Additional provisional items and contingencies were included in the overall cost of the
project to address any de-watering issues due to high groundwater table and proximity
to the Schneider creek. This additional cost was not included in the earlier cost
estimate.
Tender Process and Evaluation:
Tenders were advertised publicly in The Record newspaper, the Daily Commercial News, the
City of Kitchener website and the Internet through the Ontario Public Buyers Electronic
Tendering Information System. Fifteen (15) potential bidders picked up tender documents, and
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three (3) tenders were received by the closing date of Thursday September 2, 2010.
The tenders were reviewed by the City’s consultant for this project, Associated Engineering,
who concurs with the above recommendation.
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The references for H.I.R.A. Limited were contacted and positive evidence of their ability to
perform the work was found in all instances.
The following tenders were received:
Total bid price (including HST)
H,I.R.A. Limited St. Thomas ON $8,319,060.00
Torbear Contracting Woodbridge ON $8,546,059.00
Stonetown Construction St. Mary’s ON $9,093,550.70
The original bids were valid for 60 days or until November 2, 2010. In order to address funding
issues and following City purchasing policies, the City negotiated with bidders to extend their
bids for 120 days with no conditions. All three contractors agreed unconditionally and bids are
now valid till March 2, 2011.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The Homer Watson sanitary pumping station project is aligned with the City of Kitchener
strategic plan; refer to strategic plan document, community priorities – Development sections 1
& 3. Further, this project is also one of the priority project identified in the Kitchener growth
management plan.
FINANCIAL IMPLICATIONS:
Funding will be provided from Internal Order # 11364 – Homer Watson Pumping Station
Upgrades. A detailed Financial Report is attached as an Appendix B. In order to award this
tender there is need to transfer $4,525,000from the Development charge reserve and Sanitary
Sewer funding based on a 70/30 split established in the Development Charge Background
studies. There is no financial implication to the City’s tax levy.
COMMUNITY ENGAGEMENT:
In order to engage community members and inform various stake holders on this project, a
public information centre (PIC) was undertaken on February 11, 2009 during the Doon South
Pumping Station Class EA. All options for upgrading the Homer Watson PS were presented to
the public for their input. Further, an additional PIC was arranged on July 28, 2010, in which the
detailed design of the Homer Watson PS was presented to the public. The PIC was attended by
12 residents and the ward Councillor. In addition to these two PIC’s, letters were also sent to the
residents living within the Homer Watson PS catchment area.
ACKNOWLEDGED BY: Pauline Houston, Deputy CAO
Infrastructure Services Department
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