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HomeMy WebLinkAboutFCS-14-065 - T14-022 King Edward Neighbourhood Road Reconstruction REPORT TO: Committee of the Whole DATE OF MEETING: 2014-03-31 SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200 ext. 7214 PREPARED BY: Larry Gordon, Director of Supply Services, 519-741-2200 ext. 7214 WARD(S) INVOLVED: 9 DATE OF REPORT: 2014-03-20 REPORT NO.: FCS-14-065 SUBJECT: T14-022 - King Edward Neighbourhood (Glasgow St. (Walter St. to Park St.), Gruhn St. (Agnes St. to Glasgow St.), Wellington St. South (Walter St. to King St. West), Walter St. (Glasgow St. to Wellington St. South), Dominion St. (Strange St. to Agnes St.), Agnes St. (King St. West to Dominion St.) Road Reconstruction RECOMMENDATION: That Tender T14-022 - King Edward Neighbourhood (Glasgow St. (Walter St. to Park St.), Gruhn St. (Agnes St. to Glasgow St.), Wellington St. South (Walter St. to King St. West), Walter St. (Glasgow St. to Wellington St. South), Dominion St. (Strange St. to Agnes St.), Agnes St. J. Weber Limited, (King St. West to Dominion St.) Road Reconstruction, be awarded to Breslau, Ontario at their corrected tendered price of $5,085,756.45, including provisional items and contingencies of $920,560., plus H.S.T. of $661,148.34, for a total of $5,746,904.79. BACKGROUND: Engineering Services is proceeding with the reconstruction of King Edward Neighbourhood Road Reconstruction (Dominion Street, Gruhn Street, Glasgow Street, Walter Street, Wellington Street and Agnes Street)– City of Kitchener. Funds for construction have been approved by Council as part of the 2014/2015 budget. The King Edward Neighborhood reconstruction project has been initiated to address the infrastructure issues which currently exist. The infrastructure on these streets has generally reached the end of its useful life and requires full replacement. Construction is expected to occur in two phases on 2014 and 2015. Full funding for this project has been approved by council as part of the 2014 budget process. A surplus is projected in the project due to lower than anticipated construction pricing. 1. ix. - 1 REPORT: Tenders were advertised publicly in 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 fifteen (15) interested parties, and by the closing date of Thursday, March 13, 2014, eight (8) tenders had been received. The tenders were reviewed by D. Hofstetter, Conestoga-Rovers & Associates, the City’s Consultant for the project, and D. Lupsa, Project Manager who concur with the above recommendation. The following tenders were received: BidPriceCorrected Bid Price J. Weber Contracting Breslau ON $5,744,921,64 $5,746,904.79 * Sierra Construction (Woodstock) Limited Woodstock ON $6,098,574.29 $6,105,913.68 Steed and Evans Limited St. Jacobs ON $6,113,300.00 $6,113,381.36 Regional Sewer and Watermain Ltd. Cambridge ON $6,149,120.49 Bel-Air Excavating & Grading Ltd. Cambridge ON $6,160,218.05 Sousa Concrete Branchton ON $6,367,493.67 Drexler Construction Limited Rockwood ON $7,266,828.01 Network Sewer and Watermain Ltd. Cambridge ON $7,323,670.56 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. 1. ix. - 2 FINANCIAL IMPLICATIONS: In addition to the costs anticipated in this tender, the design and implementation of these types of projects typically involves city staff and resources from across the corporation. These costs are included in the line item "Projected Costs: Staff Time/Permitting/Material testing", and will be itemized when they exceed $125,000. Included in this line item are staff time and expenses for all city staff in support of the project such as Engineering, Kitchener Utilities, and Transportation Planning. The line item also includes all regulatory permitting, geotechnical and material testing, detouring and traffic control, alternate access and parking requirements and any other miscellaneous costs. Projects utilizing in-house staff will include costs for inspection during construction and contract administration. The net cost for this tender (A), is fair and reasonable for a purchase of this scope and the upset limit is within the budget allowance (B) provided within the budget. Funding for this purchase is included within the approved capital budget. The estimated surplus (E) will remain in the account until the 2015 budget process, when it will be reduced accordingly. Tender T14-022 King Edward Reconstruction The total budget for all phases of this project is $7,290,041.00 Estimated Cost for this Phase of Work Tender T14-022 costs, including HST 5,746,904.79 less: HST rebate on tender (571,638.77) Net Cost Being Awarded 5,175,266.02 A Projected Costs: Staff time (pre/post construction services) $21,914.75 Staff time (construction administration/material testing) $165,522.50 Detouring/Traffic/Operations/Utilities $48,884.00 Permits(MOE) $5,200.00 Bell/Region/Rogers Relocation $37,134.80 Total Estimated Cost for this Phase of Work 5,453,922.07 C Budget for this Phase of Work Sanitary Utility 2,645,530.00 Storm Water Utility 1,322,765.00 Water Utility 1,782,857.00 Intensification Allowance (DC) 104,627.00 Total Budget for this Phase of Work 5,855,779.00 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) 401,856.93 D Estimated Surplus/(Deficit) from previous phases 615,899.55 Total Estimated Surplus/(Deficit) 1,017,756.48 E 1. ix. - 3 COMMUNITY ENGAGEMENT: Potential vendors are informed of bid opportunities through the public posting of bid documents as outlined in the City’s Purchasing By-Law. Vendors, local media and the general public are informed of purchasing recommendations to Council through the public reports which are included with the Council agenda the week prior to the Council meeting. ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services 1. ix. - 4