HomeMy WebLinkAboutFCS-12-051 - T12-019 Halls Lane Reconstruction1
Staff Report
KI~rCx~.~T~R Finance and Corporate Services Department www.kifthenerca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2012-03-26
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY: Larry Gordon, Director of Supply Services
WARD(S) INVOLVED: 9
DATE OF REPORT: 2012-03-19
REPORT NO.: FCS-12-051
SUBJECT: T12-019 -Halls Lane (Victoria St to Gaukel St and Benton
St to Eby St) Road Reconstruction
RECOMMENDATION:
That Tender T12-019 -Halls Lane (Victoria St to Gaukel St and Benton St to Eby St) Road
Reconstruction, be awarded to Sierra Construction (Woodstock) Ltd., Woodstock, Ontario
at their corrected tendered price of $7,065,697.08, including provisional items and contingencies
of $1,158,406.25, plus H.S.T. of $918,540.62, for a total of $7,984,237.70; and further,
That the Mayor and City Clerk be authorized to execute an agreement satisfactory to the City
Solicitor.
BACKGROUND:
The Halls Lane reconstruction project has been initiated to address the infrastructure issues
which currently exist. The infrastructure along Halls Lane has generally reached the end of its
useful life and requires full replacement. The project scope includes the reconstruction of all
underground services (sanitary sewer, storm sewer and watermain) as well as sanitary and
water service connections to the property line. The asphalt roadway will also be reconstructed.
Also included in the project scope is improved streetlighting. Construction of Phase 2 from
Victoria Street to Gaukel Street is expected to occur from April to October of 2012 and
construction of Phase 3 from Benton Street to Eby Street is expected to occur from April to
October of 2013.
In order to address a potential deficit in the project, additional funding will be transferred from
the Uncommitted Account. The purpose of the Uncommitted Account is to collect surpluses
from favorable bidding on other Accelerated Infrastructure projects, and use them to offset
unfavorable pricing on others. The low bid price is higher than budgeted due in part to the
addition of provisional items to the contract. These items were added as a result of experience
gained from the 2011 phase of this project and include items such as additional building support
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measures and an increase in the quantity of removed contaminated soil. These items have
been added to the contract as provisional, and as such, may not be required but are prudent
given the complexity of the work area. The higher than anticipated bid prices may also partly be
a result of the complexity of the work area. The average price of all three bids received was
$9,140,011.46 (including contingencies and HST).
REPORT:
Tenders were advertised publicly in The Record, the Daily Commercial News, on the City of
Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering
Information System. Documents were picked up by nineteen (19) interested parties, and by the
closing date of Thursday, March 1St. 2012, three (3) tenders had been received.
The tenders were reviewed by M. Christensen, Walter Fedy, the City's Consultant for the
project, and K. Mick, Design & Approvals Engineer who elected to award the project to Sierra
Construction (Woodstock) Ltd., Woodstock, Ontario.
The following tenders were received:
Bid Price Adjusted Bid
Price
Sierra Construction (Woodstock) Ltd. Woodstock ON $ 7,984,689.69 $ 7,984,237.70
Network Sewer and Watermain Ltd. Cambridge ON $ 9,251,983.28 $ 9,253,387.47
Bel-Air Excavating & Grading Ltd. Cambridge ON $10,182,409.21 $10,182.409.21
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy framework.
The City of Kitchener's purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
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FINANCIAL IMPLICATIONS:
At the end of the construction phase, this project is not expected to have a surplus or a deficit
(E) due to the Transfer from the Uncommitted Infrastructure account of $735,195, as well as the
estimated surplus achieved in the design phase of the project.
Tender T12-019
Halls Lane Reconstruction
The total budget for all phases of this project is
Estimated Cost for this Phase of
Work
Tender T12-019 costs, including HST
less: HST rebate on tender
Net Cost Being Awarded
Costs Incurred to Date
Projected Costs: Staff Time / Misc
Projected Costs: City Share of Hydro Relocation Costs
Projected Costs: Structural Monitoring
Total Estimated Cost for this Phase of Work
$ 12,593,537
$
$ 7,984,238
(794,184)
$ 7,190,054 A
$ -
$ 152,040
$ 955,000
$ 100,000
$ 8,397,094 C
Budget for this Phase of Work
Storm Water Utility $ 1,508,000
Water Utility $ 2,033,000
Sanitary Utility $ 3,017,000
External Billings(Hydro, Rogers, Bell and Private Works) $ 1,006,245
Total Budget for this Phase of Work
Estimated Surplus/(Deficit) for this Phase of Work (B -
C)
$ 7,564,245 B
$ (832,849) D
Transfer from Uncommitted
Infrastructure
Estimated Surplus/(Deficit) from previous phases
Total Estimated Surplus/(Deficit)
COMMUNITY ENGAGEMENT:
Theme: Financial Management
$ 735,195
$ 97,653
$ (0) E
Strategic Direction: Ensure responsible use of public funds within a supportive policy framework.
The City of Kitchener's purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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