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HomeMy WebLinkAboutINS-12-082 - Iron Horse Trail Sanitary Sewer Rehabilition - ConREPORT TO:Finance & Corporate Services Committee DATE OF MEETING: October 15, 2012 SUBMITTED BY: Nasir Qureshi, Manager, Engineering Construction, Ext. 2412 PREPARED BY: Eric Saunderson, Construction Project Manager, Ext. 2304 WARD(S) INVOLVED: 9 DATE OF REPORT: September 28, 2012 REPORT NO.: INS 12-082 SUBJECT: Iron Horse Trail Sanitary Sewer Rehabilitation - Contract PO Extension RECOMMENDATION: That Purchase Order # 700060 to McGillivray and Sons Contractors Limited, St. Agatha, Ontario be increased from $283,981.31 to $329,828.91 for the additional amount of $45,847.60 plus applicable taxes for the Sanitary Sewer Rehabilitation Project at Iron Horse Trail. That the increase to Purchase Order # 700060 be funded through existing funds available in Iron Horse Trail account (Internal Order 470050 – Iron Horse Trail). BACKGROUND: A section of sanitary trunk sewer located along the Iron Horse Trail between Gage Street and Glasgow Street had reached the end of its useful life (+100 years old) and required replacement. The preferred construction approach involved the abandonment of a portion of the sewer that is no longer required and relocating existing sanitary services to the trunk sewer on Belmont Avenue. The section of sewer, proposed to be abandoned, was located between Glasgow Street and the CN Rail overpass. The remaining section of sewer extending to Gage Avenue has been removed and replaced along the trail corridor. Due to limited access to the sewer during the design stage, the configuration and condition of the pipe was not accurately determined. When construction started, the old existing pipe was found to be slightly oval shaped instead of round thereby requiring a different replacement construction methodology (ie open cut instead of trenchless). The major items which resulted in the increased contract value are: Due to the configuration of the existing sanitary sewer, the method of construction was changed from trenchless rehabilitation to open cut sewer installation. An unknown and unrecorded existing storm sewer was encountered during construction. Conflict with the new sanitary sewer required its removal and replacement. During the relocation of the storm sewer, unknown contaminated soil was encountered which required its removal, disposal and replacement with clean soil. î ó ï 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. FINANCIAL IMPLICATIONS: On August 29, 2011, Council approved Tender T11-056,Iron Horse Trail Sanitary Sewer rehabilitation at a total price of $283,981.34 (excluding taxes). Only two tenders were received nd with the 2 lowest being $634,147 (excluding taxes). Tender budget estimate was $395,000. The increased purchase order value remains within the tender budget estimate. The additional work was completed in accordance with the terms of the Contract. CONCLUSION: That the Purchase Order # 700060 to McGillivray and Sons Contractors Limited, St. Agatha, Ontario be increased from $283,981.31 to $329,828.91 for the additional amount of $45,847.60 plus applicable taxes for the Sanitary Sewer Rehabilitation Project at Iron Horse Trail. That the increase to purchase order # 700060 be funded through existing funds available in Iron Horse Trail account (Internal Order 470050 – Iron Horse Trail). Jim Witmer, Interim Deputy CAO, ACKNOWLEDGED BY: Infrastructure Services î ó î