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HomeMy WebLinkAboutCSD-13-003 - Purchase of Soil and Earthworks - Williamsburg CemStaff Report ~IT[;HF.Iti`~;R Communrty5erviresDepartment www.kitchenerca REPORT TO: Council DATE OF MEETING: January 7, 2013 SUBMITTED BY: Michael May, Deputy CAO Community Services, 519-741-2200 Ext 7079 PREPARED BY: Kim Kugler, Director of Enterprise, 519-741-2200 Ext 7544 WARD(S) INVOLVED: Ward 5 DATE OF REPORT: December 13, 2012 REPORT NO.: CSD-13-003 SUBJECT: PURCHASE OF SOIL AND EARTHWORKS FOR WILLIAMSBURG CEMETERY RECOMMENDATION: That the City of Kitchener's Purchasing By-law for tendering be waived to permit the purchase of topsoil and earthworks services from Tru-Villa Inc. & 2040796 Ontario Limited (Mattamy) for development of Phase II at Williamsburg Cemetery; and further, That the Director of Supply Services be authorized to execute an agreement, satisfactory to the City Solicitor, with Tru-Villa Inc. & 2040796 Ontario Limited for the securement of topsoil and earthworks services. BACKGROUND: On October 26, 2009 Council received a report (CSD-057) that recommended staff be directed to proceed with design work for Phase II development (diagram attached) at Williamsburg Cemetery and further that staff investigate funding strategies for the project. Based on the initial business plan design engineering work and environmental studies were started and amulti-year capital funding strategy was developed for the project. During the design and study phase a geotechnical study was conducted that identified a need to add soil to the Williamsburg Cemetery site to protect the groundwater table and to provide a sufficient soil depth to permit burials. This requirement for approximately 100,000 cubic metres of additional soil would impact the project budget by an additional unfunded $1.2 million to purchase the soil and the associated earthworks required to deliver and place the soil. One of the consultants the City is using in the cemetery design phase, MMM Group Limited advised staff of an opportunity to possibly secure soil from an adjacent property that was commencing their own development. Mattamy has started to develop their Trillium Community property which is adjacent to the Williamsburg Cemetery property and have identified that they will have excess soil to relocate. An inquiry was made to see if there was any opportunity for the City and Mattamy to find efficiencies for relocating the excess soil from the Mattamy property to the cemetery property. 3-1 REPORT: Cemetery staff received a proposal from Mattamy to provide soil and the associated earthworks required to ensure there is sufficient soil above the groundwater table for burials in the next phase of development at Williamsburg Cemetery. The proposal provided to staff outlined the cost of soil at $1.25 per cubic metres which is significantly less than the $12 per cubic metres market rate the City would be charged if the soil were purchased elsewhere. The close proximity of the properties and the timing of the work reduce the expenses related to hauling and disposing of the soil. The proposal also outlined a savings for the City of approximately $100,000. for the associated earthworks to move and place the soil. The cost for the earthworks was based on pricing Mattamy received through a tender for work on their property. They hired MTE Consultants Inc. to prepare tender documents and award the tender for the Trillium Community Area Grading Phase 1 (2012/13). MTE received five bids and awarded the work to the lowest qualified bidder; Van Rooyen Earthmoving Ltd of Woodstock. The four unsuccessful bidders were from Heidelburg, London, Collingwood, and Acton. Internal City departments including Cemeteries, Purchasing, Legal, Engineering and Environmental Planning have been involved in discussions and evaluations of the proposal to evaluate whether the option for the cemetery to secure soil and associated earthworks from the adjacent property at a reduced rate was viable and economical. Based on these discussions staff identified three advantages for why the City should enter into an agreement with Mattamy to secure the necessary soil and associated earthworks: 1. By purchasing the soil at $1.25 per cm verses $12 per cubic metres the City will realize a savings of $1.1 million for an unfunded expense for the additional soil. 2. An additional savings for the City of $100,000. in earthworks is achievable by using the Mattamy contractor that is already on the adjacent site performing work. 3. Due to the proximity of the two locations, the City would realize environmental benefits such as reducing greenhouse gas production associated with transporting soil over longer distances and securing soil of a similar composition to what is already on the cemetery property. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: By purchasing the soil and earthworks from Mattamy the City will achieve cost saving efficiencies in the purchase and placement of the soil at Williamsburg Cemetery. This purchase would then align with the foundation of Efficient and Effective Government as contained in the City's Strategic Plan. FINANCIAL IMPLICATIONS: By securing an agreement with Mattamy during the development of the lands adjacent to Williamsburg Cemetery, the City could benefit from a cost avoidance of approximately $1,200,000. of an unbudgeted capital expense. The estimate value for purchase of the soil and the earthworks from Mattamy will be $342,000. 3-2 CONCLUSION: Through the design study, it was identified that Williamsburg Cemetery Phase II development will require a significant amount of soil. By waiving the purchasing by-law for tenders the City can enter into an agreement with Mattamy to provide the soil and the associated earthworks and avoid a $1.2 million unbudgeted expense. The competitive tender process Mattamy undertook satisfies the Director of Supply Services and the agreement will be prepared to the satisfaction of the City solicitor. ACKNOWLEDGED BY: Michael May, Deputy CAO, Community Services 3-3 ..,..~ J ~, e e_ ~ ~ w o V~ OM ~,LL z~ - ws 2~ ~_J _ ~ ~ ~ ~ ~ = W ~ W _ -~ ~ g ` J w ~ _ ~ ~ Iw- v ~ O U' 2 a ~ - e~ ~ _ k __~ ~ ~ _ 4w ~ D ~ Y £~ s ~ LLo~ ~ ¢ ~ OPi mod 10 .- i `J v ~.,; ~, - + _ ~ ~ iA~ 9 - " ~. o.o ~;i v °~ ~+ `~ ~~ - , y - ~ ,~ I; a ~ L~ ~ I !'~ i fir, 000 =J / ~~ ~ ~ ~.._~ j ~ i a r' ~~ J ^n ~ h li ,~~~'~~_ ~Ti,l ~~~1 _ ~`. i I =, ~ ~ ': I n ~ I ~~' ~ ~ ~~ a ea. 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