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HomeMy WebLinkAboutINS-11-083 - Halls Lane Reconstruction - Consultant Purchase Order ExtensionREPORT TO:Finance & Corporate Services Committee DATE OF MEETING: November 7, 2011 SUBMITTED BY: Steve Allen, Manager, Engineering Design & Approvals, 519-741-2584 Nasir Qureshi, Manager, Engineering Construction, 519-741-2412 PREPARED BY: Kevin Mick, Design & Approvals Engineer, 519-741-2884 WARD(S) INVOLVED: 9 DATE OF REPORT: October 24, 2011 REPORT NO.: INS 11-083 SUBJECT: Halls Lane Reconstruction - Consultant Purchase Order Extension RECOMMENDATION: That the purchase order #201033 to WalterFedy be extended for the additional amount of $305,049 plus applicable taxes for the Halls Lane Reconstruction project, with an estimated $170,590 to be recovered from external utilities. BACKGROUND: Halls Lane is located in the City’s downtown core and services properties on King St. and Charles St. between Victoria St. and Eby St. The lane also serves as a major infrastructure corridor for the City and various utilities. The Halls Lane reconstruction project has been initiated to address aging infrastructure issues which currently exist. Construction of Phase 1, from Gaukel Street to Benton Street, has commenced and expected to be complete by December of 2011, weather permitting. Phases 2 (Victoria to Gaukel) and 3 (Benton to Eby) are expected to occur in 2012 and 2013 respectively. In July of 2009, the City retained WalterFedy to complete the detailed design and contract administration services for all three phases of the Halls Lane Reconstruction project. The Council approved fees for WalterFedy were $677,226.00 plus applicable taxes. On March 7, 2011, Council approved the tender to proceed with construction of phase 1 for $4,217,950.30. The contractor started on April 18, 2011 and is expected to be completed in May of 2012. Total costs for all phases of this project are estimated at approximately $11,900,000. ï ó ï REPORT: At the time of hiring the consultant in 2009, the City asked the consultant to base their fee submission on 235 working days, which was the estimated duration of the project. During the detailed design and construction of Halls Lane there have been changes to the consultant’s scope of work due to an increase in the construction schedule. Phase 1 of the project has been tendered with 205 working days. Phases 2 and 3 remain to be completed and are estimated to need 100 and 60 working days respectively to complete. This is a total of 365 working days, compared to 235 working days in the original scope of work. In order to have WalterFedy continue with the supervision and inspection of the next phases of the Halls Lane project, the purchase order will need to be extended to account for the increase in anticipated working days. The extended construction schedule is a result of several major factors. Kitchener-Wilmot Hydro Work At the time the City hired WalterFedy, Kitchener-Wilmot Hydro indicated that they would be responsible for any upgrades to their plant. However, during the detailed design, Kitchener- Wilmot Hydro requested that all of the civil portion of their plant on Halls Lane be replaced by the City as part of its project. Halls Lane serves as a major hydro corridor that services the downtown and as such has extensive hydro infrastructure located within it. Including hydro works as part of the overall construction contract has decreased anticipated productivity and therefore increased the number of working days that WalterFedy must be on site to administer the contract. The increase in fees for this work is estimated to be $121,960. As this increase in fees is directly attributable to hydro works, the City will be seeking reimbursement from Kitchener-Wilmot Hydro for this amount. Utilities Work Similar to Kitchener-Wilmot Hydro, Bell and Rogers requested that a portion of their plant be replaced by the City as part its project. The increase in fees for this work is estimated to be $24,630. As this increase in fees is directly attributable to Bell and Rogers works, the City will be seeking reimbursement from Bell and Rogers for this amount. Structural Support At the time WalterFedy was hired, it was not possible to fully determine the extent of structural support required to facilitate the installation of underground infrastructure. During the detailed design, a structural investigation was undertaken to assess private building foundation condition. Also during the detailed design, trenchless methods of underground infrastructure installation were deemed infeasible. As such, traditional open trench installation methods were required including extensive structural support. The structural support must be installed in advance of underground infrastructure, therefore decreasing anticipated productivity and increasing the number of working days that WalterFedy must be on site to administer the contract. The increase in fees associated with structural support is estimated to be $73,890. In addition to the increase in construction duration, the following factors have resulted in a projected increase to the consultant’s scope and associated costs. Project Coordination and Stakeholder Liaison Over and above the construction activities there has been a significant amount of utility coordination for this project. This includes non-civil work by Kitchener-Wilmot Hydro, Rogers ï ó î and Bell that requires scheduling and coordination in order to facilitate the construction of the City’s infrastructure. Also included is coordination required for natural gas work. In order to reduce the inconvenience to businesses and residents there have been major efforts to liaise with stakeholders during construction. This includes regular construction schedule updates to the Downtown Kitchener BIA, coordination of deliveries, coordination of alternative parking arrangements, and coordination of access and emergency exits for businesses and residents. The increase in fees associated with project coordination and stakeholder liaison is estimated to be $60,569. Phasing Revisions The original phasing for this project was anticipated to occur in 2010 and 2011. In an effort to accommodate Kitchener-Wilmot Hydro’s schedule for their infrastructure replacement, the City modified the schedule to be a 3 year project, which adds some time to the overall length of the project. In addition, the revised phasing affects WalterFedy’s fees as there is an inflationary increase for work done in 2012 and 2013. The increase in fees associated with the revised phasing is estimated to be $24,000. As this increase in fees is directly attributable to hydro works, the City will be seeking reimbursement from Kitchener-Wilmot Hydro for this amount. FINANCIAL IMPLICATIONS: Funding will be provided from the Halls Lane project account. The net effect to the Halls Lane project budget is estimated to be $134,459. Total consultant engineering fees for Halls Lane are estimated to be 8.9% of total construction cost. Fee increases are based on consultant’s unit pricing submitted at the time of consultant selection evaluation, and are therefore competitive in nature. CONCLUSION: Staff have reviewed the request and recommend that the existing purchase order to WalterFedy be increased to complete the remaining phases of this project. ACKNOWLEDGED BY: Pauline Houston, Deputy CAO Infrastructure Services Department ï ó í